Taiwan Media: Upstarts of relocatee offspring become the hidden worry for the prospective economic development of China.
2016.11.25 Source: 转载 [ Print ] [ Close ]

According to the report of China Times on Oct. 10th, relocatee offspring has become a new group in mainland China. Those upstarts, who are not concerned about food and clothing due to compensation for demolition, have become the hidden worry for the prospective economic development of China. According to statistics, along with the elimination of demographic dividend with low birth rate, the third generation of young couples in the future will have 6 properties when getting married, they will be “so poor to own properties only”.

Last year, the former richest man in mainland China, Zong Qinghou, Chairman of Wahaha Group, once mentioned that farmers whose land were collected by the government and suburban citizens would ask for higher prices from the government, along with the increasingly climbing land leasing prices, even the style of comparison. Many relocatees could earn much more from house rental and interest income, compared to their earnings in the past from hardwork. As a result, there are a batch of lazy bones or even the emergence of “relocatee offspring”.

Zong Qinghou said that the higher removal cost had further led to the rising price of commercial land. As a result, retail industry, catering industry and other tertiary industries were faced with the pressure of extremely expensive rentals, so that operators could only shift the rental cost to consumers via product and service prices. Meanwhile, the rising prices of urban houses would also result in ordinary consumers, especially young generation born in the 1980s and 1990s, inability to afford houses and live and work in urban areas in peace and contentment.

Some netizens of mainland China said that in night clubs in Shanghai, they could meet a lot of “relocatee offspring”, who came from single-child families and would inherit those properties. They were not worried about food and clothing, just having fun every day and becoming a group who “suck blood of cities without any value creation”.

Some netizens were worried that after the population aging of mainland China, properties from grandparents and parents would be inherited by the third generations. Under the policy of family planning, the structure of most of families is “4-2-1”. Therefore, if each generation leaves a house, the third generation couple will have 6 houses when getting married.

It is reported that according to statistics, the demographic dividend in mainland China is also disappearing, besides the decreasing competitiveness of younger generation due to the house inheritance without desire of progress. The population born in the 1980s was 228 million, and the one decreased to 120 million born after 2000. Labor population between 16 and 59 has been decreasing. Since owning so many properties, whom will the properties be rented to in the future? Moreover, an early datum has shown that the planning of new cities in mainland China could accommodate over 50% of world population. It is inevitable that those new cities will become new ghost cities.

In addition, according to the report in China Time on Oct. 10th, the fluctuation of real estate market in China has led to the rapid shrinking trading volume in various cities and decreasing prices. Although the vacation of National Day since Oct. 1st is the traditional hot season for real estate market, over 20 cities have hit the market severely, exerting great influences on the market. Data have shown that the transaction volume of houses in first-tier and second-tier cities in China has obviously decreased around the launch of the policy. The prices were even halved in some cities. Besides, the new policies have raised the threshold of house purchasing. Many of buyers regretted after purchasing, leading to the wave of infringement in real estate market.

It is reported that since 2016, Chinese government has changed the policies suddenly, when faced with the huge bubble crisis of real estate market. Various cities have launched adjustment measures to restrict house purchasing and loaning, even beyond the market prediction. During the vacation since Oct. 1st, the transaction volumes in various cities have been decreasing, showing the cooling clue of real estate prices. Some market practitioners alerted that the government shall control the measures to avoid any negative effect on economic growth. In fact, the prosperous real estate market could promote economic development; however, excessive heat would bring crises, which has always been the dilemma for mainland China.