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Rich buy more space to live in

By Lan Tian (China Daily)
Updated: 2009-07-09 10:50

About 20 percent of China's residents have no more than 10 sq m of living space, according to a survey that highlights the growing gap between rich and poor.

The survey, conducted by China's Xiaokang magazine and popular Internet portal Sina.com, polled 7,865 people about their accommodations from 2008 to 2009.

About 40 percent of the respondents said they had more than 30 sq m per capita living space, but about 20 percent have less than 10 sq m, the survey showed. Nearly two-thirds of respondents own a dwelling: 46 percent own one dwelling, 13 percent own two dwellings and 5 percent own three or more.

"The online survey shows the housing gap between the rich and poor is growing, which is consistent with the widening wealth gap in society," Shu Fumin, president of Xiaokang magazine, told China Daily Wednesday.

Shu said that despite the gap, housing conditions had improved in terms of construction quality, dwelling space and realty service.

Liu Yanli, a 27-year-old secretary who has rented an apartment in Beijing's Zhongguancun area for three years, said she spent half of her monthly salary - 2,500 yuan ($370) -- on rent.

"My ultimate goal is to buy an apartment in Beijing where I have pursued college studies and worked for years," she told China Daily.

Moreover, nearly 80 percent of respondents thought present housing prices were too high. About 24 percent said it would take 30 years to pay off a two-bedroom apartment.

But nearly 40 percent of those who do not own dwellings planned to buy one in five years, while only 17.9 percent chose to rent one.

Cao Jianhai, a researcher with the Chinese Academy of Social Sciences, has predicted that urban home prices would probably drop by 40 to 50 percent over the next two years because of the high number of apartments, the economic slowdown and slower-growing incomes.

The survey also found about 77 percent thought the huge profits of the real estate industry led to the high housing price.

Rich buy more space to live in

But Ren Zhiqiang, president of Beijing-based Huayuan Real Estate, told the magazine that institutional corruption in government is the main reason for high housing prices.

In May, senior officials in Xinyang of Henan province were found to have been bribed with luxury villas by local property developers.

Ren also said property developers build houses to meet rich people's need, following the market economy, while it is the government's duty to build affordable housing for the poor.

The central government last year unveiled a 4-trillion-yuan economic stimulus plan, with 400 billion yuan to be channeled into affordable housing projects across the country.

The government has pledged to provide 7.5 million affordable homes in cities, and 2.4 million in rural districts, reclamation areas and coal-mining regions by the end of 2011.

Economist Mao Yushi told China Youth Daily that economic housing might not serve low-income families' interests because of illegal deals both in their development and distribution.