Housing Woes
Image Source: Nerdwallet.com
As a fresh grad coming to Beijing in 2021, you can expect to make around 9000 RMB (1350 USD) per month, which is good and all, but it would take you around 28 years’ worth of savings – no eating, drinking nor taxes of course, to purchase a small 70 sqm apartment on the outskirts of the city.
With the latest average market price for housing in Beijing reaching 41,868 RMB / Sqm, including the Greater Beijing Area prices, and reaching upwards of over 60,000 RMB / Sqm for apartments within the 4th ring road – core city.
Current Market
Image Source: Chinadaily.com.cn
Real-estate accounts for 30% of China’s GDP and has been a traditionally stable, maybe the only as well, long term investment for institutions and the public alike.
Since 2010, the Chinese housing marketing has been appreciating at a rate of approximately 5% yoy. Currently, the real-estate bubble has made housing in major cities pretty much unaffordable for the recent generations.
Over the recent decade, the central government have been working on reigning in this explosive market, with regulations on both developers and home buyers. And new regulations in 2021 saw increased efforts.
Current Market
Image Source: china-briefing.com
Developers: banks’ lending to the real-estate sector has been under heavy scrutiny, upper limits on developers’ debt ratios are set and big developers’ statements are also under heavy scrutiny.
Home buyers: various restrictions are set – home purchasing perquisite score (a series of criteria a potential home buyer would need to meet before being eligible to purchase a home in major cities), multi-home ownership taxes and housing price appreciation restrictions.
Want to have a first free consultation session about how to do marketing in China? Contact us.
