Housing prices in urban centers like Beijing have been rising steadily in recent years. And that has been making it increasingly difficult for many residents to afford a home.

27-year old Liu Ting will move into a new home in a residential community in southern Beijing. He bought the two-bedroom apartment early last year with financial support from his parents. He says owning a home gives a real feeling of independence. He also enjoys decorating the apartment to suit his own tastes. But the joy didn't come cheaply.

Liu Ting

Liu Ting said, "I borrowed 300, 000 yuan from my parents to settle the down payment of the apartment. I also borrowed 700,000 yuan from the bank. The repayment period covers 30 years."

Thirty years is the longest period of repayment available to home buyers in China for residential housing mortgages.

Liu Ting has to repay more than 4,000 yuan in monthly instalments. That's over 60 percent of the income he and his girlfriend earn a month. Both work in government institutions and don't have much savings. Though it's a heavy economic burden to shoulder, Liu Ting still believes it's more cost-efficient to buy a home rather than renting one.

Liu Ting said, "I had considered renting an apartment before. But considering that the housing prices in Beijing may continue rising, I eventually made up my mind to buy a home as soon as I could."

27-year old Liu Ting will move into a new home in a  residential community in southern Beijing.(CCTV.com)

So far it has proved to be a wise decision. In one year the market price of the apartment Liu Ting bought has surged 50 percent, or around four thousand yuan per square meter.

That brings relief but the 27-year old sometimes feels depressed, knowing he will have to pinch and save before he can get rid of all his debt with bank. And that will likely take twenty years.

Liu Ting said, "Owning a home is a dream and goal of many Chinese. Housing reforms launched over a decade ago have helped many people realize this goal, which was unthinkable before the reforms. But there are still many holes in today's housing system -- the substantial inflation in housing prices that are not parallel to increases in income, and an inadequate supply of homes aimed at low-and-mid income earners are problems policy-makers are expected to tackle to make the housing market more effective and equitable."

(CCTV March 15, 2008)