2011 Aug 28 Is Beijing Pushing People Out?
Beijing might be losing its big-city appeal as rental prices increase, food costs spiral due to inflation, and unhappiness apparently festers. But things might start looking up.
Real estate pricing has been a constant complaint for Beijingers for years, but it seems that it's getting noticeably worse as the high cost of housing is causing young people and non-locals to bid farewell to the city. The problem seems to be a blend of pricing and rules. Thus far in 2011 rental prices have risen 13 percent from last year with an average rent of RMB 3,160. While rent has been rising, incomes have only increased by 10 percent – a citywide per capita figure which only tracks urban residents. And everybody knows that when it comes to getting a raise, migrant workers or young graduates are notoriously last in line.
Not all housing news is bad, though, as recent reports are showing that Beijing’s real estate market may finally have hit a plateau. For the first time in three years, Beijing housing prices remained static between June and July. This only applies to new real estate, which still leaves anyone without a Beijing hukou still renting (and if you're wondering when rental prices will level off, go back and read the paragraph above). If you’re searching for that one place in China where property prices are falling, try heading to sunny Sanya.
When it comes to inflation, however, everybody feels the effect on their wallet when they're standing in the supermarket checkout line. Anyone who has bought food – especially pork – will have noticed some higher prices this year, and not surprisingly, the inflation has affected the cost of a meal at restaurants as well. These high costs are one factor that helped drive China’s inflation up to 6.5 percent in July – that's a 37-month high.
The simultaneous rise in rent and food prices is apparently making Beijing an unhappy city. In a ranking earlier this month, Beijing placed 95 out of 97 cities in terms of overall city appeal based on "citizens' approval, stability, loyalty, satisfaction with day-to-day life, economic well-being, and how out-of-towners feel when they come to visit." Ranking 95 out of 97 is pretty grim. But at least we didn’t place dead last ... like Shanghai.
Images: Susu Luo, Xinhua
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