'fang nu': literally, 'slaves of the house'. This Chinese expression denotes those who have undertaken a mortgage under conditions such that for the rest of their lives they will have to work hard to pay the installments of the real estate loan.
Financial experts, in China as elsewhere, recommend allocating no more than a third of one's income to installments, but the banks, even if they preach well, rumble badly in the sense that they also give loans to borrowers who find themselves having to pay half , or even more than half, of their salaries. But for the Chinese, home is a dream, and many are ready to make any sacrifice. Wages in China are rising rapidly but house prices have risen even faster and young couples who want to realize the dream will have to tighten their belts and become 'fang nu'.
I prices per square metre average of 100 Chinese cities are five times the average disposable income. An apartment of 100 square meters costs about 40 years of income.
Economic policy faces a dilemma. If monetary conditions are eased to support the economy, this creates more demand for a housing market that is already overheated, risking a bubble and subsequent explosion. For this reason, the government has resorted to specific measures, such as increasing the minimum deposit (the cash part) for the purchase of a house from 20 to 30% (and 60% for second homes).
