BIZCHINA / Weekly Roundup
Over their heads
By Wen Chihua (China Daily)
Updated: 2007-03-20 11:39
Li Zhihong is a 33-year-old father who has spent countless hours poring
over real estate listings on a frustrating quest to find his family a
home.
"It's outrageously expensive," said Li, who works for a government
institute in Beijing.
A father carries his young son as he looks for their ideal home.
[newsphoto]
He said the current price of a three-bedroom apartment of around 160
square meters is as much as 3.2 million yuan ($410,000) within the Third
Ring Road.
"You fork out about 20,000 yuan ($2,560) on 1 square meter and all you
get in return is a tiny little space not even big enough for a single bed
it's absolutely insane."
Li graduated from the School of Economics at Peking University in 2001
with a master's degree. Li and his wife, both originally from Shanxi
Province in North China, have been looking for a suitable property ever
since, but with no success.
Li said owning a home can protect capital from being devalued as well as
providing a solid investment. He shuns property developers' notions of
what makes a good home.
A desirable home for him need not be big or extravagant. Rather, "it is a
place where your friends are and the surroundings are green, with a brook
flowing through."
"Somewhere that gives you a sense of belonging and a good quality of
life," he said. "Location or access to transport is the last thing I'd
take into consideration."
But Li's dream home is virtually out of reach after shopping around he
has found that an apartment which barely meets his needs will cost him 2
million yuan ($256,000).
"I guess I'd either have to compromise the quality of my life if I want
to stay in Beijing, or move somewhere else," he said.
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Sociologist Liu Ming believes that residents in Beijing, like those in
many other populous metropolises, could see a gradual erosion in the
quality of life if there is not the accommodation to meet the needs of
the city's young professionals.
Li Hujun, a science reporter for Beijing's Southern Weekly newspaper, has
also encountered difficulties finding an apartment.
"I've being working in this city for 10 years," he said. "And still I
don't have a place of my own."
In part, Li blamed himself for this situation he could have bought an
apartment downtown in 1998, but changed his mind at the last minute. "It
was just an apartment, not a house, and it was priced at 1 million yuan
($128,000). I thought the price might fall."
He said today's housing market is out of control prices just keep
climbing. "The more the price goes up, the more I'm hesitant to buy," he
says. The apartment Li knocked back nine years ago is now valued at 1.5
million yuan ($192,000).
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