China's real estate obsession hits consumption

Housing payments eat up a growing share of income, driving inequality

20180403_shoppingmall in China MAIN

Empty shopping malls such as this one in Shanghai are not an uncommon sight in China. (Photo by Kosaku Mimura)

ISSAKU HARADA, Nikkei staff writer

BEIJING -- China's obsession with getting on the property ladder is taking its toll on consumption, as inflated real estate prices burden homeowners with hefty mortgage repayments, leaving them little disposable income.

In a country where home ownership carries immense cultural significance, especially in the capital, the need to purchase a property separates those who spend freely from those who keep their purse strings tight.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.