Non-residents face hard and costly road to get around the hukou barrier

After working in Beijing for 10 years, Gao Feng, 36, a senior manager at a private technology company, nearly has it all: three flats, two luxury cars, a good job and a happy family. What could be missing? A Beijing hukou.

Hukou refers to permanent residency status, and an urban hukou often affords its bearers a slew of benefits.

For instance, in an effort to control property prices, the Beijing municipal government has set a rule that allows only permanent Beijing residents to buy a second home. To buy a first home, those without a hukou would need to show tax documents going back five years and proof of social security payments.

Similar restrictions apply to many areas, including qualification for low-income housing, buying cars, schooling and pensions. Local media say more than 80 welfare services in Beijing are contingent on permanent residency, with potential benefits worth more than 500,000 yuan (HK$630,000).

"It's still very hard to obtain a Beijing hukou. Although many domestic cities have started reforms in this sector, Beijing is lagging behind, partially due to its capital status and huge population," said Guo Yuhua, a sociology professor at Tsinghua University.

The hukou system was introduced in the 1950s. Before the 1980s, only permanent residents were provided coupons by the city to buy daily necessaries.