The Location Selected by Jegalryang... The Only Place in China Where Housing Prices Have Risen

Chengdu City, Soaring Housing Prices and Rapid Population Growth
Benefiting from the 'Western Great Development' Project

Amid the impact of the COVID-19 pandemic and strict quarantine controls that have shocked China's major economic hub cities, Chengdu in Sichuan Province, a beneficiary city of the "Western Development" initiative, continues to show steady growth, local media such as Securities Times reported on the 20th.

According to the recent housing price statistics of 70 major cities released by the National Bureau of Statistics, the price of new homes in Chengdu increased by 8.6% year-on-year, and the price growth rate of existing homes reached 9.2%, ranking first in China. As a result, both new and existing home prices in Chengdu have risen for 14 consecutive months compared to the previous month.

Chinese drama 'Samguk' featuring Zhuge Liang
[Photo source='Samguk' scene capture]

This contrasts with the average housing prices in the 70 cities, which had been declining for 17 consecutive months due to the spread of COVID-19 and the real estate market downturn, only rising by 0.3% in February compared to the previous month.

In particular, compared to the four first-tier cities?Beijing, Shanghai, Shenzhen, and Guangzhou?where new and existing home prices in February rose by only 0.2% and 0.7% respectively from the previous month, Chengdu's housing price growth stands out.

Real estate transactions are also active. In February, existing home transactions in Chengdu reached 19,100 units, a 160% surge year-on-year, marking an all-time high. This performance far exceeded that of Beijing, Shenzhen, and Guangzhou.

Chengdu Joins the 20 Million Population Club

Street scene in China. [Image source=Pixabay]

Last year, Chengdu's Gross Domestic Product (GDP) grew by 2.8% compared to the previous year, surpassing 2 trillion yuan (approximately 379 trillion won) for the seventh time in China. Chengdu's per capita disposable income was 47,948 yuan (about 9.1 million won), 4.4 times the national average of 10,798 yuan (about 2.05 million won).

The population growth over the past decade has also been remarkable. While China's population declined for the first time in over 60 years last year and the four major cities have seen stagnant populations for several years, Chengdu's resident population surged by 51% over ten years, from 14.575 million in 2011 to 21.192 million in 2021.

During this period, Chengdu's population growth outpaced that of first-tier cities, ranking first in China. In 2019, Chengdu's resident population reached 20.409 million, making it the fourth city in China to join the "20 Million Population Club."

Nearly half of the resident population is composed of young and middle-aged people aged 14 to 45 who are capable of productive activities, contrasting with other Chinese cities where population aging has become a social issue. In 2021, 4.2% of the incoming population in Chengdu held a master's degree or higher, ranking fourth nationwide, indicating active inflow of talented individuals.

Chinese President Xi Jinping. [Image source=Yonhap News]

Meanwhile, since President Xi Jinping emphasized the Belt and Road Initiative (connecting China, Central Asia, and Europe via land and maritime Silk Roads) in 2018, he has promoted domestic demand with the slogan "Go West," continuing massive investments in infrastructure such as high-speed railways, airports, and dams, as well as fostering innovative enterprises.

As a hub of the Western Development, Chengdu has emerged as the most notable new economic center, surpassing Shanghai and Shenzhen. Additionally, it boasts many historical sites and scenic spots related to Liu Bei and Zhuge Liang from the Romance of the Three Kingdoms, as well as a panda breeding base. Before the COVID-19 outbreak, Chengdu attracted about 57 million tourists annually, generating tourism revenue of 98 billion yuan (approximately 18.6 trillion won), which is also considered a growth driver.

This content was produced with the assistance of AI translation services.