University students in Wuhan, Hebei Province, China, use the color of their clothes to create an image pointing to the 100th anniversary of the founding of the Communist Party during the opening ceremony on the 10th. The Chinese authorities recently ordered the Ministry of Education and prestigious universities to reinforce the Communist Party’s ideology education and discipline on campus.
The ‘study zone’ is one of the key variables that explain the heat of the real estate market. Construction companies do not leave out the accessibility to nearby elementary, middle and high schools when promoting the sale. The passion for education has a profound influence on the formation of real estate prices. Even if house prices enter a declining phase, demand for school districts will not dry up and there are many expectations that price defense will be solid.
◆ School district 3 pyeong is close to 1 billion won… Xi Jinping’s “Educational Fairness Issue”
In fact, the correlation between school districts, education enthusiasm, and house prices is dramatic in China. When private education was regulated, house prices plummeted.
In China, a house near a prestigious school, the so-called ‘Shu Qipang’, is often featured in movies and dramas. If you have a house near a good school, you can send your children to that school, which is highly preferred, and the price is several times higher.
In Beijing, a few years ago, an old house of just 11.4 square meters (about 3 pyeong) in Hutong (an old alley) in the City Hall district was sold for 5.3 million yuan (about 950 million won).
In March, Chinese President Xi Jinping personally raised the mace. He said, “It’s a fairness issue in education. It’s impossible to solve this problem at once,” he said. “This problem is also prominent in Beijing. That’s why the price of Scheifang has been inflated a lot, and everyone is flocking to good school districts.”
As the Xueqipang regulation emerged as a hot topic, more than 10 cities including Beijing, Shanghai, Guangzhou and Shenzhen have taken measures.
Beijing has officially announced measures to solve the Xueqipang problem. He said that he would introduce a large-scale teacher rotation system for the new semester in September. This year, the pilot operation will be conducted in Dongcheng and Miyungu, and it is planned to expand to six other districts after that.
It is expected that the concept of ‘excellent school’ or ‘prestigious school’ will be blurred by the shift of teachers.
Shenzhen City has released a draft new ordinance to address educational inequity. Until now, one apartment only went to a specific elementary or middle school, but in the future, the range of school districts will be expanded so that one apartment can support two or three schools. At the same time, a teacher rotation system will be introduced.
Chinese authorities have also introduced measures to reduce the burden of school education, including the establishment of honor classes and the ban on paper-based tests for the lower grades of elementary school. The AFP news agency said, “This measure is aimed at reducing educational inequality in China.”
◆ 50% reduction in the transaction volume of school districts… price down 5%
Since these measures were implemented, house prices have shown a downward trend.
According to China Central Television (CCTV), an apartment was sold at a prestigious school district in Shenzhen, Guangdong Province, at a price of more than 5 million yuan (about 900 million won) cheaper than the market price.
The 116-square-meter apartment in Futian District, the center of Shenzhen, was auctioned for 1,699 million yuan (about 3.5 billion won). This apartment has a school that parents prefer, such as a foreign language elementary school, and the price per square meter is 25 to 30 million yuan for the same flat, and the price per square meter is over 200,000 yuan (about 36 million won).
In some school districts in the city center district, transaction volume has decreased by more than 50% in the past month, and transaction prices have dropped by 3-5%.
In Zhongguancun, the average price per square meter fell from 170,000 to 180,000 yuan before the announcement of the new policy to 140,000 to 150,000 yuan.
Real estate transactions in the school district also declined. The Wall Street Journal (WSJ), citing data from a Shanghai real estate research firm, said that “the number of transactions in seven school districts in China fell by 38 percent from July to July this year.” The rise in house prices has also stopped, he added.
However, it is unclear whether the preference for Chechupang will be completely eradicated and house prices will continue to fall accordingly.
Chinese parents still view the gaokao, the university entrance exam, as a means of class mobility, and some say that the enthusiasm for education will not disappear easily unless the college entrance policy changes.
Although the monthly income of 600 million people in China is only 1,000 yuan (about 180,000 won), it is known that the middle class is willing to spend about 100,000 yuan (about 18 million won) a year for their children to go to the top school.
Reporter Dongpyo Kim [email protected]
Source: 아시아경제신문 실시간 속보 by www.asiae.co.kr.
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