If we manage to assume the situation in the last ten years, we would actually observe the following: the House Price Index began to be lower than GDP per capita in 2012, in spite of the fact that both aforementioned indicators was increasing. Some Chinese dwellers unanimously claim that an average citizen of Beijing has to neither eat nor drink for approximately eighty years just to buy a floor space of around one hundred square meters.
The property market within China will likely going to be strong and medium-term oriented. According to Global Property Guide (2015), “That's because the government seems almost certain to continue its expansionary policies. The housing market is deeply intertwined with China's rebalancing from export-led growth to domestic-led growth.”
I decided to take this topic, because I heard a lot of information about this phenomenon via my television set. As you have guessed, this situation hardly affects my own life. However, I would even say that the reason I wanted to grapple this task with is both my inexorable interest and a problem suggested by many people.
Well, I do not actually think it is a secret that a topping party in China is the communist one. We all also know how linked it was been at the time the tightest friendship amid the Soviet Union and China was documented. Some processes in the present-day China sorely reminds us the ones that took place some time ago in the Soviet Union.
The Problem Itself
The great problem with possessing a habitation is being revealed. Still, some Chinese (especially in Beijing) have found a way out. They begin to live in the so-called heavenly bushes. They barely have something common with apartments we have got accustomed to; still they seem glad to have at least such ones. In addition, I want to add that there was a situation when young musicians from China composed a song about the generation of ants (Chinese people used to call homeless people in such a manner).
Of course, a question concerning a floor space always touches upon the country’s policy. This actually mean that this topic exactly affect the life either in future or before the present moment. Earlier, I mentioned that China is becoming a superpower. Frankly, I tend to think that if a country is entering a very new level, this will undoubtedly increase its proclaimed policy’s feasibility. At the same time, the communist party is at the state’s steering wheel. This makes the paragraph’s ideas more ambiguous and disputable.
According to Cox (2010), “Only thirteen per cent of the 31 million new houses were affordable to lower and middle income people” during the previous years. Moreover, there is a great difference between new luxury and both middle and lower income units. It possesses the indicators tenfold bigger.
There also appeared the information telling us that the greatest amount of houses will be built in China and Russia. This seems to be real due to the urbanization existing. Again, according to these words, the necessity of obtaining dwellings will absolutely increase in the next some years. Here, the actual main problem may be singled out: there is an enormous lack of lodging nowadays; still, we cannot surely find moderate prices for the existing habitations. By the way, People’s Republic of China appears to be an implicit leader considering the amount of housing estates by cities that are incongruous with the generally accepted standards.
The mortgage market promises to increase sufficiently. In such a way, people will be able to buy a floor space freer than some time ago. It ought to be highlighted that China will definitely specialize deeply in bad-conditioned habitations replacement rather than in constructing new buildings.
How to Solve a Problem
Secondly, it seems right to increase the effectiveness of building. It will be reached due to the help of standardization, utilizing more sufficient technologies.
Thirdly, the banking system within China should develop. Consequently, the system of risk management at state level will renovate along with guaranteeing macroeconomic stability and low inflation rate.
Last but not least is to probably create the group of operators of the state level, which will perform repair works. It is going to be a very decisive and important step because, usually, expenditures for maintenance and tendance is about twenty-thirty per cent of all habituation expenditures per year. If the Chinese government lower them, this will lead to greater floor space’s availability. At the same time, the quality of maintenance should not take a turn to the worse.
Global Property Guide. (2015). China’s Property Market Soars to New Highs. Financial Overview. Retrieved from http://www.globalpropertyguide.com/Asia/China/Price-History
Cox, W. (2010). China’s Sliver of a Housing Bubble. New Geography. Retrieved from