North-south divide

Any observant subway commuter in Beijing would notice that after 7 p.m., Line 5 headed north was still packed, while that line going south was much less crowded.

The 27.6-km Line 5 runs from the northern Tiantongyuan station, another major affordable apartment complex outside the northern Fifth Ring Road, to southern Songjiazhuang, a station outside the southern Third Ring Road.

Qin Rui, a senior analyst with Beijing-based 5i5j Real Estate Service Co., told Xinhua Thursday that Beijingers preferred apartments in the northern part of the city, partly because of a traditional belief that the air and water were better in the north.

This belief dates back centuries: the world-famous Summer Palace, used by imperial families, is in northern Beijing.

"However, in recent years, people's beliefs have begun to change as more housing projects appeared in the southern part of the city and prices were lower compared with other areas. There would be new home projects including some affordable home projects in the coming years in southern Beijing that would attract many potential home buyers," Qin added.

Attitudes change with costs

Figures from 5i5j showed that among the 10 parcels of land for building affordable homes sold to developers in Beijing last year, four were in the southern Fengtai and Daxing districts, showing the city's efforts to boost less developed areas.

No city-level average data for land prices in the south and north are available, but figures from 5i5j indicate that land in the north is more expensive.

Three parcels of land designated for building affordable homes in Daxing last year fell into the range of 2,119 yuan to 2,449 yuan per sq m, while four sites in northern Changping fell into the range of 2,794 yuan to 4,899 yuan per sq m.

Prices of second-hand homes are now about 9,000 yuan per sq m near Tiantongyuan. A similar residence would cost 11,000 yuan per sq m near Songjiazhuang, while the price in Daxing outside the southern Fifth Ring Road was about 7,500 yuan per sq m, on average, said Qin.

Average prices for second-hand homes in the more developed northern Third Ring Road area exceed 17,000 yuan per sq m.

It would take time for hospitals, schools, banks and other facilities to develop near the new home projects in the southern city and catch up with other districts of the city. But the development of the city's southern half was speeding up, he added.

Many Beijingers will have to compromise on facilities and convenience, like Qiao did, to afford a home of their own. A report released earlier this month by the People's Bank of China, the central bank, discussed a survey of 50 cities nationwide, including Beijing.

The survey found that more than 60 percent of respondents considered current home prices "too high" and expressed the intention of getting affordable homes.

Qiao has been worried about how to help her 20-something son, Fanfan, set up a home in the coming years, given high urban prices.

However, Fanfan, born and bred in Beijing, did not rule out the possibility of buying a relatively cheap apartment in the southern part of the city. His main concern was easy access to subways for going to work and socializing.

Fanfan would likely take heart from the city's massive subway expansion plans that will improve service in the south. The 28.2-km Subway Line 4 is scheduled to go into operation in September, linking Fengtai, southwestern Xuanwu, western Xicheng and northern Haidian districts.

A 21.8-km subway line connecting Daxing with Subway Line 4 is set to go into service at the end of next year.

So Fanfan will be able to skip the bus and take subways to visit his parents, if he buys an apartment in Fengtai or Daxing in the future.

(Xinhua News Agency June 28, 2009)