In the first half of 2009, Shanghai average housing price rise 30%, close to 17.4 thousand yuan ($2500) per square meter record.
In a mature society, the middle class should be to alleviate the gap between rich and poor, promote social equity “stable valve,” but reporter through the survey found that, for middle-income groups, the intention to buy a house together is not easy.
In general, the middle-income groups in China should be defined as a monthly income of around 5,000 yuan, and their professions such as public institutions management, public civil servants, educators, business and technical personnel, managers and business owners. At least a college degree or more education, middle-income groups are sometimes dubbed “the sandwiched class”, which means that they are not like the upper class people who enjoys great wealth, but also not as low-income people can benefit from social welfare.
In the first-tier cities like Shanghai, in order for the young couple to buy a set of standard living space, not only going to cost both of their savings, but also money borrowed from their parents, in order to pay the down payment, and then they become what’s known as the “housing slaves” (or mortgage slaves).
In a rather popular Web forum, a user by virtue of their experience of living in France, writes an article entitled “The French price comparison Shanghai price” posts.
France’s low-income group of the monthly wage is around 3000-4000 euros, subtract 33% -48% of the personal income tax, true income would be around 1500-2000 euros or so. In Shanghai of low-income group is 1000-2000 yuan monthly wage, but with a lower tax rate, the true income would be about 1,500 yuan.
In Paris, a 60 square meters apartment would be prices at around 40 thousands euros which is approximately 200 months of income. In Shanghai, a 60 square meters apartment would cost around 70 thousands yuan which is 400 months of income. This means a resident in Paris could afford a home working at low-income wage for 17 years but a Shanghai resident needs 34 years of income. Of course this calculation does not include other living expenses.