Getting your first house is quite a milestone! However, buying a house can be quite costly and millions of people in China feel the same way. Although China is overpopulated, there are still too many homes that are empty and unfilled. The Republic of China has been expanding exponentially in the last decade and the economy is soaring. The government is trying to build more housing for their people so that families will no longer have to share a smaller space. So why is there so many empty houses? Here are some of my perspectives on the current housing situation in China:
- 1. Many people tried to buy as many houses as soon as they can since the price of the houses sold on the market were at a time quite inexpensive and very affordable. People who bought these houses and left them unfilled are those who have already bought their first homes and are looking to buy more to sell it in the future when the prices for housing increases.
- 2. Chinese people began to diversify their portfolios and began buying homes overseas. In America, it is common to find rich Chinese people who own homes but they do not actually live in America. Most of the time, they rent out their house to other families and try to make money in that way.
- 3. Parents take advantage of the current affordable pricing for houses and buy houses for their children so that when they grow older, their children have a place to live with their new families.
- 4. Apartments are expensive. The average income of Chinese citizens are an estimate of $18,371 per year. The average price to afford an apartment is $16,702 in major cities such as Beijing and Shenzhen.
- 5. The government rushed to build more housing ever since they decided to lift the ban on one child per family. Many areas where the government build housing are still underdeveloped and quite uninhabited.
- 6. China currently has a huge gap in gender ratio. There are 33 million more men than women living in China which means there are less women for men to marry to. Men have much more competition and they feel the need to back themselves up by having more assets such as houses.
These are just some common reasons to why there are so many unfilled houses in China. As the economy continues to thrive, more housing will be available and many more unfilled houses will be bought. A solution for families who purchase houses but do not occupy them, you should wait a few years and sell it in the market again for a much higher price.
