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Gap widens among Chinese households on desire to buy property, survey shows

Enthusiasm for property ownership among Chinese families varies widely in different cities as authorities keep a tight leash on housing speculation, particularly in top cities, according to a Nielsen survey

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A survey conducted by Nielsen for Bank of Communications showed that Chinese households are showing a rising interest in liquid investments such as stocks rather than property. Photo: Reuters

A widening divergence on property buying tendency is emerging among Chinese households in big and small cities as authorities keep a tight leash on housing speculation, according to a survey conducted by market research company Nielsen for Bank of Communications.

The bimonthly household property investment index of top cities – including Beijing, Shanghai and Shenzhen – ebbed one point to 106 in January, while the indicator for smaller cities inched up by one point to 111, further widening the gap to five points, up from three points in November, the Shanghai-based bank, also known as BoCom, said on Tuesday.

“Households are showing more enthusiasm in liquid investment while their buying desire for property polarised further between big and small cities,” said the bank, pointing to the ongoing housing speculation curbs in top tier cities.

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The findings were part of a broader index that has measured urban wealth based on the opinions of 1,800 well-off households every two months since late 2010.

The bimonthly household property investment index of top cities fell by one point to 106 in January. Photo: Reuters
The bimonthly household property investment index of top cities fell by one point to 106 in January. Photo: Reuters
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Nielsen conducts the survey of households with an annual after-tax income of more than 100,000 yuan (US$15,887) in the mainland’s top five cities: Beijing, Shanghai, Guangzhou, Shenzhen and Chengdu.

It also carries out a similar survey of households with an annual after-tax income of at least 80,000 yuan in a further 21 major cities.

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