Qiu Huiying, a human resources manager in Guangdong, worries in numerical terms when she looks ahead to the next decade: a 20-year mortgage, a 10 per cent loss on her property and thousands of yuan in monthly childcare costs that are set to rise.
She bought a 624 sq ft flat last year, so her mother-in-law could move in and help care for her son. But the purchase now feels less prudent after prices in the 20-year-old complex have already fallen by about 10 per cent.
Like many urban households in China, Qiu’s household faces financial pressures that extend beyond housing. The family’s mortgage is about 5,300 yuan (US$781) per month, while child-related expenses add another 3,000 yuan.
Forecasts that flexible employment could surpass 40 per cent of urban employment have only fuelled Qiu’s sense of financial insecurity. “This makes me think we need to be even more frugal going forward,” she said.