Policymakers must heed homeowners seeking to upgrade
Survey finds buying a bigger home in wish list top three, but official obstacles hinder move up
Policymakers looking to smooth the transition to a consumption-based economy could do well to heed research data that highlights a strong desire among mainlanders to upgrade to bigger homes.
But, for now, policies are skewed against homeowners realising this goal, even though an easing of borrowing rules to help upgraders move up the property ladder would unleash the kind of spending that the top leaders want to see in a realigned economy.
A survey by the Chinese Academy of Social Sciences (CASS), a government think tank in Beijing, shows that home ownership rose to 93.5 per cent this year, up from 91.6 per cent two years ago. And 18.6 per cent own more than two homes - the proportion could be higher as people tend to under-report home ownership.
When those surveyed were asked for their top wishes in the next five to 10 years, 18.8 per cent ticked "home upgrade" - third on the wish list after "income rise" and "safe and healthy family," according to the survey published on Christmas Day.
An easing of borrowing rules [would] help upgraders move up the property ladder
Before buying a comfortable home, mainland families - particularly those from the older generation - tend to save every penny they can. But the response to the survey suggests that many Chinese families will be selling their homes to buy a bigger property as they welcome new members - the mainland's recent relaxation of the one-child policy makes this even more likely.