Sky-high home prices hurt competitiveness in cities

11:02, December 03, 2010      

Email | Print | Subscribe | Comments | Forum 

Sky-high housing prices are taking a toll on competitiveness in many cities like Shanghai, which recently lost its rank as the best mainland Chinese city for business to Guangzhou, according to a 2010 Forbes list of China's best business cities.

In descending order, the 10 best Chinese cities for business are: Guangzhou, Shanghai, Shenzhen, Hangzhou, Suzhou, Beijing, Wuxi, Ningbo, Nanjing, and Tianjin.

High costs brought about by high housing prices can weaken a city's competitiveness. Shanghai scored 0 points in "business costs," while Guangzhou scored 0.2 points. The rent and prices of office buildings are important components of the "business costs."

According to statistics from multinational real estate corporation CB Richard Ellis, the rent and prices of quality office buildings in Guangzhou in the first half of this year were only 46 percent and 51 percent, respectively, compared with Shanghai.

Shanghai's high housing prices have also affected its ranking in the "talent index." Shanghai outshines Guangzhou in both the quality and quantity of colleges and universities as well as scientific research institutions, but scored 0.9 points in "talent index," a mere 0.04 points higher than Guangzhou's 0.86.

Admittedly, high housing prices are a natural result of urban development, but it is obviously wrong for many cities to increase housing prices first and then sell land at high prices. Overpriced office or residential buildings will inevitably increase companies' business costs and thus reduce a city's attractiveness to talent.

By People's Daily Online


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese national flag guards escort the flag across the Chang'an Avenue in Beijing, capital of China, Oct. 1, 2011. More than 120,000 people gathered at the Tian'anmen Square to watch the national flag raising ceremony at dawn on Oct. 1, in celebration of the 62th anniversary of the founding of the People's Republic of China. (Xinhua/Luo Xiaoguang)
  • A policeman stands next to the barrier at the entrance of Wall Street in New York, the United States, Sept. 30, 2011. Police set up the fences to keep away the demonstrators of the Occupy Wall Street campaign. (Xinhua/Shen Hong)
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
Hot Forum Discussion