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About 81.62 percent of Chinese homes are privately owned, higher than the proportion in some developed countries like the United States and the United Kingdom where the rates are below 70 percent.

 

Economists say the high private housing rate in China reflected a contradiction in housing supply and demand, and was a major contributor to rocketing housing prices.

 

A report released by the Ministry of Construction says the per capita housing floor space rose from 22.79 square meters in 2002 to 26.11 square meters in 2005, with the current average household floor space reaching 83.2 square meters.

 

The proportion of privately-owned homes in China rose from 72 percent in 2002 to 81.62 percent now, with the total floor space of urban private homes at 8.79 billion square meters.

 

The figures showed the rapid development of the urban housing market and the greatly improved living conditions, said Chen Sheng, an expert on the study of economic indexes in China.

 

But he urged the government to heed the high private housing rate, which was driven by the strong nationwide demand for homes, which in turn pushed up prices.

 

In the United States, the private ownership rate is 68 percent, while in the United Kingdom it is 67 percent. Germany is much lower at about 42 percent.

 

The ministry report said the private housing rate was fairly uniform across China. The wealthier east has the higher proportion of 82.58 percent, the undeveloped west is 81.93 percent, while central China has 79.69 percent.

 

Chen suggested the central government pay more attention to poorer sections of society by offering more low-cost homes for purchase or rent.

 

Industry insiders believe cheap housing is a large market in China and could stimulate further economic growth.

 

Savings in China's financial institutes had gathered to 9.2 trillion yuan (US$1.15 trillion) by the end of 2005, while more low-income urban residents and rural migrants seek homes in the cities.

 

(Xinhua News Agency July 5, 2006)