When stability becomes a liability
Owning a home has always been a priority in life for many Chinese, but with home prices on the constant rise in recent years, many people are turning to the rental market to get a roof over their heads
About a decade ago, a television series called woju, which refers to homes that are as small as a snail's shell, became a huge hit among Chinese audiences because it depicted the struggles families had to go through to buy a home in major Chinese cities.
Many young Chinese viewers commented that the scenarios portrayed in the show were very reflective of the situation back then - people would scrimp and save for years only to realize that they still couldn't afford to foot the down payment of a home.
In Chinese culture, owning a home has long connoted stability. Despite the fact that buying a home in a first-tier city like Beijing and Shanghai usually means depleting the savings of the child and the parent and having to pay huge mortgage loans for decades, many people still go ahead with making the commitment.
In 2015, the average monthly salary in Shanghai was 5,939 yuan ($863). A dual-income family would have needed to save every single penny for about 20 years in order to buy a 90-sq m apartment.
As of December 2016, the current average price of new homes in Shanghai was 40,794 yuan per square meter, compared to 39,307 yuan per sq m in Beijing and 57,998 yuan per sq m in Shenzhen, Guangdong province, according to E-House (China) Holdings Ltd.
Embracing the alternative
According to Chen Lina, an analyst from Shanghai Sinyi Realty Agency and Consulting Co, people who choose to lease homes though they are capable of buying one are either international residents or those who have yet find an affordable or ideal property.
Zhong Zixuan is one individual who can afford a home but has chosen to rent instead. Zhong and her husband first shared an apartment with another tenant in Pudong New Area's Zhangjiang region before relocating multiple times to different parts of the city. The couple and five other family members currently reside in a 175 sq m three-bedroom apartment located in Jing'an district that they are renting for 20,000 yuan per month.
Zhong has been questioned by many of her friends and relatives about her reluctance to buy a home even though she can afford to.
Her answer? She wants to earn even more money so that she can afford the ideal home in a central location like Jing'an.
These days, however, an increasing number of individuals are choosing to rent even though they can afford their dream home. To Shu Yi, a marketing director at a local company, renting a home gives her a sense of freedom. She said that not being tied down by mortgage payments gives her the opportunity to pursue her interests such as learning French, swimming, going to the gym and traveling around the world.
Shu has since 2005 been living in her leased apartment located in Jiangsu Road in Changning district. As she earns 360,000 yuan per annum, Shu is able to comfortably afford buying her current apartment which is valued at about 4 million yuan. Her friends and family have been encouraging her to buy the unit too.
"I don't want to be one of these people, and I am glad I'm renting instead of buying. I am an independent person and freedom is the most important thing in the world to me. I do not want to let a mortgage sabotage my quality of life," said Shu.
"I will continue to rent a house for at least another five years. I don't know what will happen five years later, but I am pretty sure that I will make the decision rationally and always prioritize quality of life."
