Academy says China's housing prices are 30 pct overpriced

19:01, December 08, 2010      

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New homes in major Chinese mainland cities are on average about 30 percent overpriced, the China Academy of Social Sciences said today in its annual housing report.

Among the 35 large and medium-sized cities tracked by CASS, Fuzhou in Fujian Province is the severely overpriced with a price-bubble index of 0.703, meaning 70.3 percent overcharged above the reasonable price.

It is followed by Hangzhou, Zhejiang Province with a price-bubble index of 0.669 and Nanning, Guangxi Zhuang Autonomous Region with a reading of 0.668.

According to the report, new homes in Shanghai are 36.5 percent overpriced while in Beijing, new houses are almost 50 percent overcharged.

"It remains hard to say whether the CASS conclusions can reflect the real situations across the country because different statistics or different research models always lead to very different conclusions," said Song Huiyong, a research director with Shanghai Centaline Property Consultants Ltd, operator of the city's largest estate chain. "We should probably pay more of our attention to its possible influence on central government's future decision making."

Research reports released by organizations other than the country's official statistics bureau always help offer some different voices and the price-bubble index would at least provide some references to government decision makers that rein-in policies to curb property speculations should continued to be conducted in a strict way, Song said.

Source: Shanghai Daily

(Editor:李佳)

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