(China Daily)
Updated: 2008-03-28 07:21

People may choose to rent houses instead of buying their own if a good environment for it is created, says an article in Yanzhao Metropolis News. The following is an excerpt:

Recently, an official with the Housing and Urban-Rural Construction said we should take measures to guide people to have a correct psychological expectation of having a house.

In Western countries, he said, college graduates have to work several decades before they can afford a house. He questioned why our college graduates want to buy a house right after their graduation.

The Chinese would rather buy a house than rent one. It is not because they love splashing out money or are unwilling to accept international practices.

In fact, the key issue is that our renting environment and supporting services are not satisfactory. Under these circumstances, it is probably wrong to talk about psychological direction and a change of attitude toward housing.

Renting a house can be risky in China. In big cities, people usually blame urban safety issues on house renters. Some people even believe that they are a source of crime. Those who own their own houses have fewer police checks than those who rent. This reality has forced people to buy their own houses.

Houses for rent are mostly of poor quality and thus can be easily distinguished from those for sale. If these houses were of quality they could be rented out.

Worse, China does not have a mature real estate market. Although housing prices keep rising, people still hope to buy their own houses as early as possible. It is a popular choice in a chaotic real estate market.

We should think about what kind improvements can be made to the market to attract more people to rent houses. That is the solution to the problem.

(China Daily 03/28/2008 page8)