this post was submitted on 14 Mar 2024
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90% of families in the country own their home giving China one of the highest home ownership rates in the world. What’s more is that 80% of these homes are owned outright, without mortgages or any other leans. The only people who will have a crisis are financial capitalists who overinvested in the real estate sector, and they're not getting a bailout like they would in the west. Meanwhile, houshold savings in China are record high, and the economy is growing at 5.2%.
Maybe update your propaganda talking points there. 😂
80% owned outright my ass.
https://www.statista.com/statistics/1214346/china-value-of-real-estate-housing-mortgages/
Most current state put them at 40 trillion yuan in mortgages (5.5 trillion USD)
And their home ownership rates aren’t surprising when you consider how they have been pre-selling homes before they are even built. Which is backfiring horribly with those housing companies going under because they can’t finish the homes fast enough.
If you had a clue regarding the subject you're opining on, then you'd understand that these figures aren't mutually exclusive. Vast majority of people in China own their primary homes, that's where 80% ownership comes from. In additions, people and companies buy up secondary properties, which is where the mortgages come from.
Do elaborate how it's backfiring on anybody but the financial capitalists who invested in these ventures.
You literally claimed “without any mortgages or leans” my friend, which is plain not true.
I literally quoted a mainstream western article explaining that this is the case and even going into detail of how and why this is the case. Are you trying to claim that Forbes is shilling for China here and making things up?
You quoted an article that’s over 7 years old lmao
Are you suggesting that the rate of home ownership in China has changed in any substantial way in the past 7 years. If so please do provide citations to support your claims. Otherwise, feel free to go trolling in a different thread lmao.
I already did. The statista link from before shows new home sales falling off a cliff over the last couple years. Probably due to all the problems the big sellers like evergrande have been seeing
That doesn't show anything to support your argument. It just shows that people aren't seeing real estate as a good investment vehicle.
Wait I linked mortgage values didn’t I, in response to the BS about them owning their homes without mortgages.
Here’s some proof showing home ownership falling off;
https://tradingeconomics.com/china/new-home-sales
https://www.reuters.com/world/china/chinas-home-sales-during-new-year-holiday-fall-26-compared-with-2023-2024-01-02/
https://amp.cnn.com/cnn/2023/08/01/economy/china-real-estate-country-garden-intl-hnk/index.html
Etc etc
I've literally addressed this already above. Your links are not showing that home ownership is falling off, they're showing that people are buying less homes now. Which is something you'd expect to be the case when most people already own a home. The only people buying homes now are the ones investing in them as secondary properties. It's incredible that you can't wrap your head around this.
If you actually choose to bother to check out pricing in most Chinese cities, you would come to realise that the pricing is very similar to the London center. When you consider that the average salary in China is much lower than in the UK, most Chinese are only able to buy houses with help from their parents and grandparents. Add to that the lack of balance between genders due to the ruinous one child policy, and the cultural norm of property being a requirement before even trying to propose to someone, and you got a housing bubble that looks set to burst.
What part of 90% of the people own their housing are you still struggling with?