Report: Last year, low-income people with an average purchase age of nearly 30 years had the highest leverage.

 Report: Last year, low-income people with an average purchase age of nearly 30 years had the highest leverage.

In 2018, 47.8% of the countrys home buyers were born in the post-80s. In recent years, although the post-90s gradually penetrated into the market, the post-80s still occupied half of the countrys market. On January 28, the Shell Research Institute released the National Home Purchaser Survey Report 2018 (hereinafter referred to as the Report). The report shows that the average age of home buyers in 2018 is 29.5 years. Compared with other parts of the world, the average age of Chinese people is younger, which is also one of the important reasons for the relatively active property market in China.

Living space per capita is insufficient and improving demand is becoming the mainstream.

According to the report, the average residential area of home buyers in 2018 is 27.8 square meters, 24.3% of which is less than 20 square meters, which is equivalent to less than 60 square meters for a family of three. From the age division, compared with the weak accumulation of funds in the post-90s, the living space of the post-80s is narrower. The data show that there are generally children in their families, with an average living area of 27 square meters per capita, and the living conditions in each age group are the worst.

Per capita residential area (square meters) of home buyers of different age groups

At present, Chinas real estate market has entered the era of stock, the demand for second-hand housing purchase is closer to the overall demand of buyers to some extent. Report shows that in the second-hand housing market, the demand for housing is mainly two-bedroom. At the same time, switching to a house with more suitable area, more convenient geographical location and better quality is the three core elements of the demand for switching houses. In order to live better, the proportion of changing houses before 80 has reached more than 40%, which has become the main force to improve the change of houses.

The first group is more dependent on loans to buy houses, and the low-income group has the highest leverage.

In 2018, 90% of first-time home buyersloans were traded, which accounted for the highest proportion of loans traded for different housing demand. According to the report, the first-movers are more dependent on loans and more leveraged at the same time. In 2018, the average monthly supply-income ratio of first-time home buyers was 42.9%, which was 5 percentage points higher than the demand for other houses. Among them, the proportion of monthly supply-income ratio was more than 50%, which was also higher than other groups.

Since most of the primary demand comes from the post-80s and post-90s generation, the pressure of repayment of debts of the younger generation is particularly prominent. The data show that the monthly income ratio of post-80s is 40.8%, and that of post-90s is 43.5%. It is worth mentioning that, apart from the age group, from the income dimension, low-income people are more leveraged, with an average monthly income ratio of 43%.

Average monthly supply-income ratio of buyers with different incomes

In fact, apart from the pressure of paying off debts, the pressure of paying house buyers will also greatly affect the decision-making of buying houses. By comparing the total price of the house purchased by the buyers in 2018 with the income of the family before tax, the shell Research Institute concludes that the ratio of the total house price to income is 7.1.

According to different age groups, the report points out that the post-80s and post-90s are relatively weak because of the accumulation of funds and know how to do things according to their abilities. The price of the house they buy corresponds to their income, and the ratio of house price to income is 7.2 and 6.5, respectively. Before 80 years, they mainly depended on asset replacement, and the value of the property they bought was higher than their income.

In this regard, Xu Xiaole, chief market analyst of shell research institute, predicts that, considering the living conditions, leverage pressure and housing demand of different buyers, policies should support the improvement of housing for those who own houses, encourage the sale of houses and houses, and in particular encourage the sale of two-for-one and three-for-one.

Source: Author of New Beijing News: Zhang Xiaolan, Editor-in-Charge: Xiao Qi_NN6799