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Growing number of mainland Chinese would rent homes rather than buy amid economic downturn, analysts say
- Sentiment has waned and some potential homebuyers would rather extend their leases instead of buying a home, China Index Academy analyst says
- Tenants see renting as more like longer term ‘settling’: Beike Research Institute
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Linda Chen, 28, sold her 70 square metre (753 sq ft) home in China’s eastern Hangzhou city for a discount of about 300,000 yuan (US$41,963) and moved into a rented unit of similar size with her husband in December, after paying around 9,000 yuan in monthly mortgage payments for years.
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Even after several rounds of mortgage ratio cuts introduced by the authorities last year, the couple still needed to pay more than 7,000 yuan per month, which triggered their decision to sell.
“It was not an easy decision to make, but [the house] was a huge burden,” she said. “I know we needed to sell no matter what the price.”
For now, the couple can bear the 4,000 yuan in rent they are paying for their new home. Chen is getting used to a new job with a lower salary after being laid off, and her husband is starting a business from scratch amid China’s depressed employment market.
“Renting is more flexible and suitable for us. I won’t think about buying a home for at least the next five years.”
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Chen and her husband are among a growing number of people who would rent rather than buy amid the downturn in China’s economy.
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