High Housing Prices in China
China's housing prices has experienced an unprecedented boom in recent decades. Statistics show that the house-price index in China, a measure to examine the price of residential housing, has increased constantly from 100 in 1980 to 693.7 in 2015. Compared with America, Japan and South Korea whose house-price indexes are all under 200 in 2015, this index in China are unreasonably high (The Economist, 2015). This means that the Chinese have a low level of housing affordability, which will detrimentally affect China's social and economic sustainability. Therefore, several strategies should be set to solve this issue. This report will illustrate the negative impacts caused by high housing prices, explore the causes and suggest some possible solutions.
The issue of high housing prices in China has profoundly negative impacts on both social and economic sustainability.
In terms of social impacts, it has led to a situation where most of young people cannot afford those houses of high prices, especially in the metropolis. As a house serves as a prerequisite for marriage in China, this probably is resulting in an intensified marriage market competition and the delayed marriage (Li and Wu, 2013). In more detail, the data cited by Li and Wu (2013) shows that 60% of the young in Beijing buy their houses for marriage. Therefore, the high housing prices have delayed the marriage age and then led to the late childbirth. In the long term, these are likely to create an increasing ageing gap and contribute to an ageing society.
Moreover, as well as these ageing problems, the soaring housing price can affect social stability in terms of inequality of housing wealth which may lead to the expansion of private property (Shi, Sato and Siculor, 2013) and increase the gap between the rich and the poor. This is because more profits could be earned from housing investment, while some would possibly undergo a loan to buy their houses....