China’s women believe housing essential for marriage

Chemical companies, Consumer demand, Economic growth, Financial Events

Egg house Dec10.png70% of China’s women regard “housing, a stable income and some savings” as vital for any man wanting to get married.

And they probably don’t regard architect Dai Haifei’s $300 Beijing ‘egg house’ (pictured) as their ideal.

The data comes from the “2010 China Marital Status Report“, which adds that the man’s personality and morals are only relevant if he meets these 3 requirements.

This is why the dramatic rise in China’s house prices, following the massive stimulus/lending programmes of the past 2 years, is causing such social tension. As China Daily comments, there is a clear risk that “China may breed a new group of bachelors, men caught in the trap of unaffordable houses.”

So far, the leadership seems divided on what to do. Understandably, current premier Wen Jiabao would probably prefer to ignore the problem until his term finishes in 2012. But likely new premier, Li Keqiang, is clearly very concerned that such a delay would then leave him with a bigger problem to solve.

The problem is that the housing crisis, where Beijing homes sell for an average 22 times earnings, is just the tip of the iceberg. As Yu Yongding, a very senior policymaker, noted last week, “the country’s investment rate now stands at more than 50 percent – a clear reflection of China’s low capital efficiency“. And Yu also worried that “investment in real estate development accounts for nearly 25% of the total”.

The blog’s best guess is that those in charge will continue to take small steps, such as Sunday’s interest rate rise, but fail to step hard enough on the brakes. In turn, the current ‘boom’ in China’s demand will continue to support the global chemical industry for the next few months.

But clearly the risk is rising that we may then discover, too late, we have simply been in the middle of yet another China ‘boom and bust’ scenario.

PREVIOUS POST

To wait, or not to wait

23/12/2010

70% of China’s women regard “housing, a stable income and some savin...

Learn more
NEXT POST

US foreclosure period doubles, as house prices fall

29/12/2010

70% of China’s women regard “housing, a stable income and some savin...

Learn more
More posts
$60bn opportunity opens up for plastics industry as need to eliminate single-use packaging grows
17/03/2019

150 businesses representing over 20% of the global plastic packaging market have now agreed to start...

Read
Ageing Perennials set to negate central bank stimulus as recession approaches
10/03/2019

The world’s best leading indicator for the global economy is still firmly signalling recession...

Read
BASF prepares its UK supply chain for Brexit
24/02/2019

BASF has been working with Ready for Brexit (the online platform I co-founded last year) as part of ...

Read
Companies and investors have just 30 working days left to prepare for a No Deal Brexit
17/02/2019

Companies across the UK and EU27 are suddenly realising there are now just 30 working days until the...

Read
The BoE’s pre-emptive strike is not without risk
12/02/2019

The Financial Times has kindly printed my letter below, arguing that it seems the default answer to ...

Read
IKEA heads into the circular world with furniture subscription trial
10/02/2019

“Once upon a time, Granny and Grandad used to go to a large shop on the motorway to buy their ...

Read
Fed’s magic money tree hopes to overcome smartphone sales downturn and global recession risk
03/02/2019

Last November, I wrote one of my “most-read posts”, titled Global smartphone recession ...

Read
Flexible working is key to reversing today’s collapse in fertility rates
27/01/2019

Women in most parts of the world are not having enough children to replace our population. This is o...

Read

Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more

Analytics

Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more