People do not rent property by choice
It is high time that honest discussions took place here in China (Hong Kong and the mainland) regarding soaring housing prices and potential meltdown. I disagree with Hu Shuli ('A thriving rental sector can ease soaring property prices and curb panic buying', May 26).
Hu believes governments should make renting a major part of the solution to accommodation problems rather than placing emphasis on people owning their own homes in the near future. This is her answer to soaring housing prices. She refers to examples from other countries implying that some Europeans prefer to rent.
Hu says: 'Buying a property is an investment, but renting one adds to consumer spending and will boost the domestic demand needed to transform China's growth model.'
She says: 'Property investment is favoured because the government's prolonged control of the financial market has limited investment options.'
People rent by necessity and few people want long-term rentals. It is not a lifestyle choice. Renting is the only way for people who cannot buy a house, and may never be able to, because of soaring prices. Nobody wants to succumb to having to pay for other people's investments [in property].
Yet that is the reality for many. You rent a house from other people. Your money pays for their investment. And therein lies the problem.
