China's long-held tradition of families living within their means is being challenged in Shanghai, according to a recent survey.
The local statistics bureau randomly picked 500 families in China's commercial hub for the survey, which found that urban per capita expenditures during the first six months of this year reached 7,591 yuan (US$949), up 29.3 percent from the same period last year.
At the same time, the urban per capita disposable income was 6,870 yuan (US$859), up only 19.6 percent compared with the same period last year.
This shows that a 721-yuan (US$90) "family deficit" emerged as expenditures exceeded incomes in some Shanghai families.
The survey also found that the expenditure increase could be mainly attributed to the city's booming real estate market. House prices keep surging as the per-square-meter price has increased by 500 yuan (US$62) from the beginning of this year.
During the first six months, the city's per capita expenditure on housing came to 465 yuan (US$58), up 31.5 percent from the same period last year.
The prosperous real estate business also boosted the interior decoration industry. The survey showed that decorating and furnishing spending is 4.3 times more than last year.
Shanghai was once labeled one of the country's worst cities in terms of housing conditions. The per capita floor space was no more than 6 square meters 10 years ago, while today, its urban per capita living space has doubled.
Some affluent citizens even own more than two apartments.
According to statistics from the People's Bank of China Shanghai Branch, by the end of June, the city's total housing credit loans had reached a record 112.2 billion yuan (US$14 billion), up 21.7 billion yuan (US$2.7 billion) from the beginning of the year.
Sources from the bank said the banks are glad to grant housing loans which had higher credibility and lower risk compared with other kinds of loans.
Experts said that the "family deficit" would not spark a real financial crisis because of consistently increasing incomes and the consistent enthusiasm for saving.
(China Daily August 6, 2002)
