Average age of Beijing first-home buyers is 27
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Despite high housing prices in Beijing, locals are applying for loans for their first homes at an average age of 27, a generation earlier than people in developed countries, Xinhua reports.
According to a recent report by Beijing Lianjia Real Estate Agency and China Everbright Bank, the rate of house purchases by full payment increased by 54 percent - hitting a three-year high - despite a series of new housing policies that were issued earlier this year to cool the market.
The strain of repaying these loans has also therefore increased. The average price of houses bought with loans in Beijing is 1.7 million yuan, or about 250,000 U.S. dollars. First-time buyers of homes smaller than 90 square meters qualify for loans for 80 percent of the price of the home and a 30-percent discount on the benchmark interest rate. However, based on the average home price, that still leaves buyers with monthly payments of about 9,000 yuan.
Despite the rising costs, the ages of house purchasers have decreased in recent years. According to the report, the average age of Beijingers applying for first-home loans is 27, compared to 42 in Japan and Germany, 36 in Taiwan and over 30 in the United States.
"Young people in Beijing buy houses too early and depend too much on their parents," said Lin Qian, vice president of Beijing Lianjia Real Estate Agency. "It leads to not only pressure to purchase a house at an early age, but also a long-term insufficient supply compared to demand. Housing prices therefore are hard to fall," said Lin.
Lin said the phenomenon should be a concern for relevant government departments. Easing the demand for homes as well as the anxiety of young people and their parents concerning home ownership will be a key factor in the healthy development of the real estate market in Beijing, said Lin.
