China is in the midst of a dizzying housing bubble. Shanghai’s average housing price is up nearly one-third from a year ago, with prices in major cities like Beijing and Guangzhou not far behind. Chinese consumers are rushing to buy homes before the government steps in with restrictions.
When rumors swept through Shanghai that the government would require homeowners to pay more in taxes and down payments to buy additional properties, many couples filed for divorce so that one partner could still be treated as an independent buyer.
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Shanghai, China’s financial capital, is at the heart of the property boom. Demand there is so intense that developers now commonly require sizable deposits of cash just to join a lottery to buy a new apartment. Only holders of winning numbers will be offered the chance to buy a unit. One flashy new development in central Shanghai charges a refundable 200,000 renminbi, or $30,000, to enter its lottery.
“In Shanghai now,” said Wang Jie, a sales manager there, “it’s not like you can buy an apartment just because you have money.”
The variance is huge in China. Some people may save 60, 70% and many may save none. It’s first, second and third world wrapped into one country. That’s why you see the government’s measures are targeted at city levels.
Well, isn’t it the same as the youngsters sitting in coffee shops all day with their laptops and buying only the bare minimum? For the Chinese seniors, at least you can say they have limited means and not many options.
