China’s property market was the main driver of the world’s second-largest economy. From the 1980s through 2020, the sector contributed 17% to 29% to the nation’s GDP.
However, due to the prolonged Covid-19 epidemic outbreak, the slump in China’s GDP growth, compounded with repeated defaults by property giant Evergrande and others, has been a big blow to the country’s property industry.
It’s not only giant companies suffering but also smaller grassroots companies.
A citizen posted his story about the dilemma with his house loan repayments.
In the past two years, his wages have shrunk a lot.
He knows that he is fortunate to have a job in these difficult times. However, he only receives a base salary which is barely enough for his mortgage.
His and his wife’s combined monthly income is 7,500 yuan (1,120 dollars), while the mortgage costs 6,000 yuan (900 dollars). The remaining is for other expenses, such as heating, gas, and water. After payment, there is no money left.
He feels embarrassed to ask his parents for money, as they also face the same plight.
He used several credit cards to pay off the mortgage so many times that he doesn’t know how much money he owes on his credit card.
Before buying a house, he usually went out for a meal or ordered food online. At present, these practices have become a dream.
He says he is not the only case. Many people are in the same situation.
He also tells the story about his colleague living in the neighborhood. He could earn 10,000 yuan (1,500 dollars) a month in his family’s well-run cake shop business. However, the cake shop has closed due to the epidemic, and he has to rely on the pre-existing income of more than 5,000 yuan (750 dollars) a month.
With increasing living pressures, he will sell the house and rent another instead.
After listening to the neighbor’s story, the man also wants to sell his house. However, he bought it at a pretty high price, and the price has dropped in the past two years. So he will lose a great deal of money if selling it. But if he doesn’t, how he will pay tuition for children to go to school.
He feels so worried, thinking over and over. He can’t sleep all night. He doesn’t know when these miserable days will end.