Reasons Why Chinese People Like to Buy Houses
I remember there is an article called buying a house in China in Mandarin intermediate course, learning Chinese is not only learning a language, we must also understand the Chinese culture, Chinese people’s live etc, today I am going to tell you why Chinese people like to buy houses so much!
There is a thriving real estate industry in China. When you deep dive and take a look at the reason for it, you will figure out that most people are obsessed with buying houses. Let’s take a look at some of the most prominent reasons that tempt people in China to go ahead and invest their money in the purchase of houses.
1. There aren’t too many investment opportunities in China
Even though China has a strong economy, there aren’t too many investment opportunities available for the ordinary people living in the country. Due to the same reason, Chinese people tend to go ahead with spending their money to buy a property. The Chinese real estate market was privatized back in the year 1997. Alon with that, property investments became popular among people. We can still see that popularity. The growth of the middle class in the country and rapid urbanization have also contributed a lot towards the increased tendency among people to buy a property. We can even see how numerous billionaires emerged in the country because of their real estate businesses.
2. It is a secure investment
Purchasing property is considered a secure investment in China. People are worried to go ahead with investing their money in non-secure investments. However, there is no need to worry about anything when spending money to buy property in the country. It provides people with the opportunity to invest their extra cash in something productive, without taking a massive risk.
There is a booming housing market in China as well. When it is paired with the strong economic performance of the country, there is no need to have second thoughts when investing money to buy a house. The high net worth individuals of the country are confident about the way how the Chinese economy is going forward. Hence, people who have invested their money in the purchase of a property will not have to end up with any disappointments.
3. It is one of the goals
Among the goals that Chinese people have in their dreams to achieve, owning a property holds a prominent place. In other words, you can call this one of the well-known aspirations among people in China. According to the statistics, it has been identified that around 90% of the mainland who lived during 2010 had their own houses. Around 43% of the Chinese population is living in rural areas as of now. However, we can expect this to change in the near future. That’s because of the rapid urbanization trends that are taking place in the country as of now. Even the Chinese government is looking forward to assisting over 100 million individuals from rural areas to migrate to urban areas and make them find jobs. Therefore, we will be able to see an even higher demand for properties in the urban areas of China during the upcoming years.
4. It is considered as something essential for marriage in China
To control the population in China, there’s a policy introduced by the government as a “one-child” policy. However, it is still possible to see a massive population imbalance in the country. In other words, more than 33 million men are outnumbering women in the country as of now. Due to the same reason, there is massive competition for marriage as well. Hence, there is a social norm that defines that a Chinese man should have at least one house to proceed with the marriage. It is called a qualification for marriage in Chinese society. We can also take this as a reason for the popularity of the property market in the country.
It is the dream of every young adult in China to somehow afford a house. Then he will be able to make himself eligible for marriage as per the society. In other words, it will be difficult for a Chinese young adult to find a partner for marriage without having property on his own.
5. It resembles the social and cultural status
Owning a property in China can also contribute a lot towards the social and cultural status that a person can get. Chinese people are usually concerned about hierarchy and reputation. In other words, they want to focus more on “having a face”. Otherwise, they will have to face numerous depressing situations in day to day life.
By owning a property, a person will be able to uplift his social status without encountering any challenges. That’s because Chinese society takes them as successful individuals. This is another prominent reason that makes the Chinese individuals hunt for properties. They are not just concerned about the local property market, but also about the international property market. Owning property in another country makes Chinese people look more prestigious. In other words, it is helping them to further gain face.
6. Property ownership comes along with numerous opportunities
Property ownership in China is associated with multiple opportunities as well. That’s because it will make the owner of the property open to more education, work, business, medical, and lifestyle opportunities. It can also provide peace of mind to a person because there is no need to worry too much about spending retirement. They know that they have a place on their own to spend their retirement.
7. It is a great investment opportunity as well
People in China are not just looking for property to buy and live in. They are also concerned about the investment opportunities that are associated with the property. Since there is a high demand for houses in the country, there is no need to worry too much when going forward with the investment. That’s because the property values are appreciating along with time. In general, the average home prices grow around 10% per year. Hence, it is a great investment opportunity available for them to consider.
In conclusion, understanding Chinese people’s thinking is important while taking your Mandarin classes in Hong Kong. These are the most prominent reasons why people in China are so obsessed with buying property. It is a great opportunity available for them to grab and no person is ready to miss it out.