50% housing bubble looms over 7 major Chinese cities

14:21, December 09, 2010      

Email | Print | Subscribe | Comments | Forum 

Chinese Academy of Social Sciences issued "Housing Green Paper: China Housing Development Report (2010-2011)" on Dec. 8. The report shows that housing bubbles in China's larger cities are relatively big, and the housing bubble in some cities is too large.

The survey, covering 35 large and middle cities, was conducted in September by the Institute of Finance and Trade Economics under the Chinese Academy of Social Sciences (CASS).

Tracking the price of new homes in non-prime locations in 35 large and medium-sized cities in September, the academy found that new properties in Fuzhou, Fujian Province, were the most overpriced with a "price-bubble index" of 0.703, followed by Hangzhou in Zhejiang Province and Nanning in the Guangxi Zhuang Autonomous Region, at 0.669 and 0.668 each.

The bubble index was designed to take into account 11 sub-indexes, including public infrastructure and facilities, and average per capita disposable income.

First-tier cities, such as Beijing, Shanghai and Shenzhen, are among 11 cities where bubble indexes account for 30 to 50 percent of the market price, it said. Eight cities have a bubble indexes from 10 to 30 percent, and the index in nine cities are below 10 percent.

The report said the average bubble among the 35 cities is 29.5 percent, and there is little or no bubble in Taiyuan, Hohhot, Shenyang, Xiamen, Haikou, Yinchuan and Urumqi.

The annual report said the rapid rate of housing price rises in China will slow next year after the government took tough measures to cool the market.


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Five-month-old twin girls, An An (left) and Xin Xin, meaning safe and relieved in Chinese and carrying the good wishes of their parents, leave a Shanghai hospital yesterday, less than four weeks after a September 5 surgery to separate the conjoined twins from Zhejiang Province. They were born connected at the liver, chest bone and heart sac, the covering around the heart. Though they shared one liver and used one pericardium, they have their own hearts.
  • Models present cheongsams designed by Chen Yanqin during a fashion show in Yantai, east China's Shandong Province, Sept. 30, 2011. More than 100 creations of cheongsams, a traditional Chinese women's dress also known as mandarin gown or Qipao, were displayed here Friday. (Xinhua/Li Mingfang)
  • Citizens watch fireworks exploding over the Jingtian Lake during a music firework show in Shanghai, east China, Sept. 30, 2011, on the eve of the National Day. (Xinhua/Pei Xin)
  • A member of the media takes a look at a Bluecar, an electric-powered car made by French company Bollore, at a media presentation in Vaucresson, west of Paris, yesterday. The Bluecars have a range of 250 kilometers in urban use and a maximum speed of 130km per hour, and will be available to rent in the streets of Paris under the name of Autolib. The four-seater Bluecars will be positioned at 1,200 stations in the French capital, where customers can pick them up and drop them off, and will be available around the clock. Users must have a valid driver's license and pay a subscription fee to borrow one of the vehicles.
  • Tourists watch a performance about an ancient court trial. (Photo/Xinhua)
  • U.S. President Barack Obama (4th L, front) shakes hands with outgoing Chairman of the Joint Chiefs of Staff Admiral Mike Mullen (1st R, front) as Vice President Joe Biden (3rd L, front), Secretary of Defense Leon Panetta (2nd L, front), and Army General Martin Dempsey (1st L, front) look on during the Chairman of the Joint Chief of Staff Change of Responsibility Ceremony at Joint Base Myer-Henderson Hall in Arlington, the United States, Sept. 30, 2011. Army General Martin Dempsey succeeded Mike Mullen to become the 18th Chairman of the Joint Chief of Staff on Friday. (Xinhua/Zhang Jun)
Hot Forum Discussion