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The country where 70% of millennials are homeowners | The country where 70% of millennials are homeowners |
(about 9 hours later) | |
If you're aged 19-36 and don't own your home, you're probably not reading this in China. | If you're aged 19-36 and don't own your home, you're probably not reading this in China. |
While young people around the world are struggling to get on the property ladder, an HSBC study found that 70% of Chinese millennials have achieved the milestone. | While young people around the world are struggling to get on the property ladder, an HSBC study found that 70% of Chinese millennials have achieved the milestone. |
A sizeable 91% also plan to buy a house in the next five years, according to the survey. | A sizeable 91% also plan to buy a house in the next five years, according to the survey. |
The mortgage lender spoke to around 9,000 people based in nine countries. | The mortgage lender spoke to around 9,000 people based in nine countries. |
While China came out top of the pack, Mexico was next with 46% of millennials owning property, followed by France with 41%. | While China came out top of the pack, Mexico was next with 46% of millennials owning property, followed by France with 41%. |
In Malaysia, the US, and Canada, just over a third of the age group have bought a house or flat, while in the UK it's 31%. | In Malaysia, the US, and Canada, just over a third of the age group have bought a house or flat, while in the UK it's 31%. |
Worst off in the bricks and mortar stakes are Australia and the UAE, where 28% and 26% of millennials own their own homes respectively. | Worst off in the bricks and mortar stakes are Australia and the UAE, where 28% and 26% of millennials own their own homes respectively. |
HSBC noted that 83% of those surveyed who were not homeowners had plans to buy within the next five years. Mexicans and Malaysians were most likely to harbour the ambition, with 94% saying so. | HSBC noted that 83% of those surveyed who were not homeowners had plans to buy within the next five years. Mexicans and Malaysians were most likely to harbour the ambition, with 94% saying so. |
Although its ownership figures were on the higher side, France had the lowest number of would-be buyers, at 69%. | Although its ownership figures were on the higher side, France had the lowest number of would-be buyers, at 69%. |
This may be because historically, the country has not placed the same value on home ownership as its neighbour across the Channel. Renting is completely socially acceptable - especially in costly cities like Paris and Lyon. | This may be because historically, the country has not placed the same value on home ownership as its neighbour across the Channel. Renting is completely socially acceptable - especially in costly cities like Paris and Lyon. |
For many people aged 19-36, houses remain unaffordable because they have not saved enough for a deposit. Property prices in eight of the nine countries studied increased in 2016. | For many people aged 19-36, houses remain unaffordable because they have not saved enough for a deposit. Property prices in eight of the nine countries studied increased in 2016. |
The rise in house prices relative to salary growth also leads to issues. | The rise in house prices relative to salary growth also leads to issues. |
Almost two-thirds of respondents said they would need higher earnings to buy a home, but seven of the nine countries are facing real salary growth of less than 2% in 2017. | Almost two-thirds of respondents said they would need higher earnings to buy a home, but seven of the nine countries are facing real salary growth of less than 2% in 2017. |
In the UK, for example, house prices rose by 7.5% in 2016, according to the International Monetary Fund, while wages are expected to rise by 1.9% this year. | In the UK, for example, house prices rose by 7.5% in 2016, according to the International Monetary Fund, while wages are expected to rise by 1.9% this year. |
How do Chinese millennials buy their homes? | How do Chinese millennials buy their homes? |
According to Forbes, China has seven of the world's top 10 most expensive cities for residential property. In Shanghai, there were even reports of couples getting fake divorces to exploit a home-owning loophole. | According to Forbes, China has seven of the world's top 10 most expensive cities for residential property. In Shanghai, there were even reports of couples getting fake divorces to exploit a home-owning loophole. |
HSBC said 85% of those surveyed in China were in urban areas, with 14% in the suburbs and 1% in rural areas. | HSBC said 85% of those surveyed in China were in urban areas, with 14% in the suburbs and 1% in rural areas. |
So how have so many millennials managed to buy their homes? | So how have so many millennials managed to buy their homes? |
For sons in particular, it's down to the Bank of Mum and Dad - and underpinned by the marriage market. | For sons in particular, it's down to the Bank of Mum and Dad - and underpinned by the marriage market. |
Thanks to the One Child Policy, there will be 30 million more men than women looking for a partner in China by 2020. | Thanks to the One Child Policy, there will be 30 million more men than women looking for a partner in China by 2020. |
Chinese parents know their sons' chances of marrying well are materially increased if they own a home. | Chinese parents know their sons' chances of marrying well are materially increased if they own a home. |
Dr Jieyu Liu, deputy director of the SOAS China Institute, told the BBC: "It is the custom that husbands will provide a home. | Dr Jieyu Liu, deputy director of the SOAS China Institute, told the BBC: "It is the custom that husbands will provide a home. |
"As young people's wages are too low, the husband's family is expected to take on the responsibility to purchase the property in their son's name, or pay the deposit. | "As young people's wages are too low, the husband's family is expected to take on the responsibility to purchase the property in their son's name, or pay the deposit. |
"Many love stories fail to turn to marriage if the men fail to provide a marital house." | "Many love stories fail to turn to marriage if the men fail to provide a marital house." |
The lonely men of China's 'bachelor village' | The lonely men of China's 'bachelor village' |
And then there's the fact that elderly Chinese often move in with their children in their twilight years. | And then there's the fact that elderly Chinese often move in with their children in their twilight years. |
As a result, many see buying a property in their son or daughter's name as an investment in the family's future. | As a result, many see buying a property in their son or daughter's name as an investment in the family's future. |
Chinese parents are also good savers, with many squirreling away around 30% of their income. Other relatives may be called on to help too, as first home deposits are often at least 30%. | Chinese parents are also good savers, with many squirreling away around 30% of their income. Other relatives may be called on to help too, as first home deposits are often at least 30%. |
And if the housing market's in bad shape? No problem. They're prepared to buy years in advance to get a good deal. | And if the housing market's in bad shape? No problem. They're prepared to buy years in advance to get a good deal. |
Reporting by Rebecca Seales | Reporting by Rebecca Seales |
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