How much monthly income is needed to buy a house in Shenzhen?
In the southern Chinese city of Shenzhen, the cost of owning a home has become a topic of increasing concern among residents and netizens. With the average price of both new and second-hand houses reaching RMB 60,465 and RMB 59,144 per square meter in August 2023 respectively, many are questioning whether it is still feasible for a family to purchase a house with three children.
1 October 2023
According to Weibo netizens' reactions, the high cost of housing has led to heated discussions among residents who express their discomfort and frustration over the situation. Some netizens have expressed concerns about how they can afford a house in Shenzhen, even when preparing a 15-square meter room for each child. "How did such a bad thing happen on such a good day?" one Weibo user lamented.
Others have pointed out that the high cost of housing is not limited to Shenzhen but extends to other cities in China as well, with some netizens commenting that it's becoming increasingly difficult for young people to afford homes. "Usually people in first line who buy houses have family annual income between 50,000 to 70,000 or they are from abroad with high wealth," one user wrote.
However, not all netizens share the same concern about housing prices. Some have pointed out that renting a house is a basic need and if one isn't able to afford it, they should evaluate their income and work on increasing its value. "Renting a house is a basic need. If you don't have money, take some time to think why you are earning less than you should be legally," one user advised.
When looking at the cost of rent in Shenzhen, with a price of 6,210 yuan per square meter for all houses, a three-person household would need to budget around 300,000 yuan for a 50-square meter house. Assuming the couple has no other major expenses and is healthy and happy, they should make at least 20,000 yuan from various sources each month. Based on these calculations, it would take about eight years to save up for the down payment and then buy a house without any other expenses.
While some netizens have expressed their frustration over the housing situation in Shenzhen, others have taken a more pragmatic approach. Some have suggested that renting is a viable option until one can afford to purchase a home. Others have pointed out that earning more money and increasing one's income value are essential to affording a house in Shenzhen.
Despite the challenges, many residents continue to work and strive for their dream of owning a home in Shenzhen. The high cost of housing is not just an issue faced by those in Shenzhen but one that affects many cities across China as well. As more people seek to own homes, it's likely the conversation around affordable housing will continue to grow in importance and urgency.