Divorces in China are Surging, the Reason Might Surprise You

Known for their practicality in love and life, Chinese citizens residing in Shanghai are queuing up for divorce at a rate of about 100 couples per day at the downtown divorce registration office since a housing regulation loophole is rumored to be facing closure.

Divorce registration offices in other Shanghai districts have seen similar increases. The majority of couples filing for divorce are intending to buy a second home for investment or improved standard of living.

Booming home sales have matched the upswing in divorce requests. A whopping 2,100 homes were sold on Aug. 30, only four days after the rumor about a new housing regulation to close the loophole began being circulated on social media.

First-time individual homeowners that are Shanghai residents must pay a 30% deposit on a home. They also receive a 10% discounted interest rate. Married couples are able to buy a second home, but they must pay a 50% to 70% deposit 

Rumors began swirling on social media that couples would need to be divorced for 12 months before the non-home owning individual would be able to take advantage of single home owner deposit requirements. The difference in a deposit is significant, especially as home prices continue to trend ever higher.

Shanghai government officials announced that no new regulations would take place. However, Shanghai citizens appear to have mixed feelings about whether or not the government is being truthful in their statement about the regulations.

Regardless of whether or not the loophole will be closed, the drive to disregard to sanctity of marriage and obtain a second home illustrates how cutthroat Shanghai's housing market is. Property prices have seen a double-digit percentage increase over the past year.

One truth shines clearly against the backdrop of conversations currently happening in Shanghai debating the morality of obtaining a divorce to obtain a second property,: housing regulation is desperately needed.