Asia
Home > Breaking News > Asia > Story
Dec 13, 2009
Chinese groan at high costs
<!-- by line --> <!-- end by line --> BEIJING - COMPUTER engineer Jenny Jin and her husband have been hunting for a home for a year, but like many young would-be property owners in China, they have struggled to enter the market due to soaring prices. Now, with a baby due in February, the Shanghai couple - who already spend a fifth of their combined monthly income of 13,000 yuan (S$2,643) on rent - say they can no longer wait, even if prices are higher than ever. 'I dare not spend too much on other things before we finally get a house - it has become the biggest pressure in life,' Mr Jin, 29, told AFP. 'I'm kicking myself for not buying it when I had a better chance.' Property prices in 70 medium-sized and large cities in China rose 5.7 per cent in November from a year earlier, the fastest rate in 16 months and the sixth consecutive monthly on-year increase, the government said last week. The boom has been bolstered by easy bank loans, tax breaks and a lower down payment threshold, introduced by the government in the past year to support the real estate sector, a key driver of China's economic recovery. But concerns are rising that property bubbles are building due to speculative investors, amid rumours that a large portion of the government's $586 billion stimulus package has been channelled into asset markets. Fears that policymakers might withdraw these measures next year to dampen speculation have also triggered a round of what analysts call 'panic buying", further fuelling the price surge and increasing stress for younger Chinese. -- AFP
Home > Breaking News > Asia > Story
Dec 13, 2009
Chinese groan at high costs
<!-- by line --> <!-- end by line --> BEIJING - COMPUTER engineer Jenny Jin and her husband have been hunting for a home for a year, but like many young would-be property owners in China, they have struggled to enter the market due to soaring prices. Now, with a baby due in February, the Shanghai couple - who already spend a fifth of their combined monthly income of 13,000 yuan (S$2,643) on rent - say they can no longer wait, even if prices are higher than ever. 'I dare not spend too much on other things before we finally get a house - it has become the biggest pressure in life,' Mr Jin, 29, told AFP. 'I'm kicking myself for not buying it when I had a better chance.' Property prices in 70 medium-sized and large cities in China rose 5.7 per cent in November from a year earlier, the fastest rate in 16 months and the sixth consecutive monthly on-year increase, the government said last week. The boom has been bolstered by easy bank loans, tax breaks and a lower down payment threshold, introduced by the government in the past year to support the real estate sector, a key driver of China's economic recovery. But concerns are rising that property bubbles are building due to speculative investors, amid rumours that a large portion of the government's $586 billion stimulus package has been channelled into asset markets. Fears that policymakers might withdraw these measures next year to dampen speculation have also triggered a round of what analysts call 'panic buying", further fuelling the price surge and increasing stress for younger Chinese. -- AFP
