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Frightened by real estate prices in large cities, young Chinese choose forgotten cities

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July 21, 2023
in Buying Property
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To purchase an affordable condominium, Fontana Fang needed to go and search for it distant: it is within the north of Chineclose to the Russian border, that she discovered her happiness… four,000 kilometers from her residence.

In main Chinese language cities, “until you come from the elite, I do not see how younger folks can earn sufficient to purchase a home”sighs this 29-year-old girl, who works in advertising.

Like her, many younger folks frightened by actual property costs have chosen to purchase in distant and declining industrial areas, the place changing into a house owner continues to be attainable.

Fontana lives in Canton along with her husband and their two youngsters, however the condominium belongs to the couple’s dad and mom.

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On this megalopolis of 15 million inhabitants within the south of the nation, the sq. meter usually exceeds 100,000 yuan (12,400 euros), an inaccessible value for a lot of.

However final winter, Fontana found Hegang, a mining city within the northeast the place temperatures had been then round minus 20 levels.

On this smaller city (1.four million inhabitants), the couple solely needed to pay 40,000 yuan (5,000 euros) for an condominium on the highest ground with a lined balcony and a wide ranging view of the hills.

Their mission? Renovate it to make it their second residence, after they wish to escape the sweltering summers of Canton.

IN IMAGES, IN PICTURES China: within the pilot cities of social credit score

“I used to be shocked. I didn’t anticipate to have the ability to purchase a house for thus little”rejoices Fontana.

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A motion criticized by the Chinese language Communist Occasion

Cities like Hegang, China has a whole bunch of them, with a wealthy industrial previous however now forgotten.

That is the case of Fuxin, within the province of Liaoning (northeast), or Rushan, in Shandong (east), which have seen their inhabitants decline because the 1980s, whereas authorities reforms shifted the financial middle of gravity of China in the direction of the southern and jap coasts.

Hegang misplaced 15% of its inhabitants between 2010 and 2020, in response to official figures.

Now these declining cities enchantment to the youthful era, outlined by their low actual property costs and relaxed, inexpensive existence.

A younger man who purchased an condominium for 68,000 yuan in Gejiu, a mining city in Yunnan (southwest), informed AFP that he did so “primarily to don’t have anything to do”.

He refers back to the so-called “tang ping” (actually, “lie flat”) perspective, a counterculture that has emerged lately in China that encourages younger folks to do as little as attainable and reject social pressures associated to work.

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The leaders of Communist Party in energy strongly criticized this motion, deeming it opposite to the values ​​of laborious work and innovation.

The brand new proprietor of Gejiu, who speaks on situation of anonymity, says he has no “not even thought of work but” since he settled down: “I will keep right here, stay on what little financial savings I’ve, and discover a temp job in a giant metropolis once I’m out.”.

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A passing fad

Throughout a current go to by an AFP crew to Hegang, road distributors provided fruit, greens or cookies for the equal of some cents, whereas pensioners performed playing cards in entrance of their properties.

“There’s something non secular on this extra lent rhythm”observes Kathy Cato, 28, who has additionally simply purchased an condominium in Hegang.

“Within the (wealthier) cities, we solely discuss work and enterprise all day lengthy”, provides the younger girl, who beforehand lived in Xi’an and Zhengzhou, two massive cities within the middle.

“However folks do not do this an excessive amount of right here, as a result of the likelihood of constructing some huge cash is fairly low anyway.”

Hegang had recognized fortune with the coal mines, however now its funds are cold: the municipality is struggling to repay its money owed and the federal government got here to its rescue through a “restructuring” in 2021.

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The measure to keep away from chapter however the metropolis repeatedly pays its workers late, in response to a neighborhood administrator.

For Shen Wenxin, initially from Hegang the place he has simply moved again to open a restaurant, “the extra individuals who come, the higher”.

“However they solely signify a tiny portion of the economic system,” he provides.

Different residents contacted by AFP additionally doubt town’s capability to discover a second youth with the newcomers.

Max Chu left Hegang for Beijing when she went to varsity. She works within the capital and now not desires to return.

“After some time, trend (to go to those industrial cities, editor’s observe) will cross”, she predicted, “folks will overlook about them”.

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On the identical matter :

⋙ Why do some Chinese people stop repaying their mortgage?

⋙ Chinese encouraged to invest in real estate in exchange for gold bars

⋙ These departments where real estate prices are falling the fastest

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