Money

Survey shows house prices still too high

By Liu Yujie (China Daily)
Updated: 2010-05-12 07:56

Almost 80 percent of people in Beijing expressed their preference to rent rather than buy a house, given the high property price, according to a recent report by the Beijing Social Facts and Public Opinion Survey Center.

Among the 1,162 Beijing residents interviewed, 77.8 percent responded that they would prefer to rent a house rather than buy one.

Only 15.3 percent of interviewees still wished to buy houses regardless of the high prices. The remaining 6.9 percent said they were not sure yet.

Almost 50 percent of those interviewed earn less than 40,000 yuan a year, and 45.3 percent have salaries between 40,000 yuan and 120,000 yuan.

Additionally, 90.6 percent of the interviewees thought their ideal monthly rental was below 2,000 yuan and 71.7 percent wished to keep it under 1,200 yuan per month.

However, there is a remarkable contrast between their wish and the market price. Statistics from Beijing statistics bureau show the average monthly rental price, based on figures from 15 house agencies in Beijing during March 2010, reached 2,865 yuan, a 16.3 percent increase on February and a 19.3 percent growth on last March.

Nine in 10 people expressed their wish that more government-subsidized low-rental housing be available in the future.

Zhang Dawei, research director at Centaline Property, told METRO that renting was the more rational choice.

"There are two reasons. First, prices are still higher than most residents can afford. Second, as the government has introduced a series of macro-control measures to the property market, the price will definitely fall.

"I think most people would ride the fence and take their time calculating when is the best time to purchase."

A man, surnamed Yan in his early 30s, told METRO it has been almost four years since he came to Beijing but he is still living in a flat he rented from a local friend.

"Given my financial situation, I wouldn't think of buying a house, because it would mean I will find it difficult to make ends meet each month. I'm still young.

"I don't want to make myself a slave to property and become someone with a long face that worries about the monthly mortgage every day."

Despite the survey, some young people are still thinking about buying.

"I'd rather manage to secure a loan to buy a flat, not only because I'm confident house prices will keep rising in the long term but also because paying rent makes me feel like I'm working for the landlord rather than myself," said a woman, surnamed Shao at Lian Jia Real Estate's Huixinli store, where she was searching for a two-bedroom flat.

Accompanied by his newly wed wife, a 32-year-old from Jilin province, surnamed Li, also told METRO: "No matter what, a house of our own gives me a strong sense of belonging. Although there's always the pressure of repayment, it serves as a reminder of my duty to the family and will encourage us to stick together through thick and thin."