China's high private housing rate reflects contradiction
(Xinhua)
Updated: 2006-07-04 17:22 About 81.62 percent of Chinese
homes are privately owned, higher than the proportion in some developed
countries like the United States and the United Kingdom where the rates are
below 70 percent.
Economists say the high private housing rate in China reflected a
contradiction in housing supply and demand, and was a major contributor to
rocketing housing prices.
A report released by the Ministry of Construction says the per capita housing
floor space rose from 22.79 square meters in 2002 to 26.11 square meters in
2005, with the current average household floor space reaching 83.2 square
meters.
The proportion of privately-owned homes in China rose from 72 percent in 2002
to 81.62 percent now, with the total floor space of urban private homes at 8.79
billion square meters.
The figures showed the rapid development of the urban housing market and the
greatly improved living conditions, said Chen Sheng, an expert on the study of
economic indexes in China.
But he urged the government to heed the high private housing rate, which was
driven by the strong nationwide demand for homes, which in turn pushed up
prices.
In the United States, the private ownership rate is 68 percent, while in the
United Kingdom it is 67 percent. Germany is much lower at about 42 percent.
The ministry report said the private housing rate was fairly uniform across
China. The wealthier east has the higher proportion of 82.58 percent, the
undeveloped west is 81.93 percent, while central China has 79.69 percent.
Chen suggested the central government pay more attention to poorer sections
of society by offering more low-cost homes for purchase or rent.
Industry insiders believe cheap housing is a large market in China and could
stimulate further economic growth.
Savings in China's financial institutes had gathered to 9.2 trillion yuan
(US$ 1.15 trillion) by the end of 2005, while more low-income urban residents
and rural migrants seek homes in the cities.
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