Academy says China's housing prices are 30 pct overpriced

19:01, December 08, 2010      

Email | Print | Subscribe | Comments | Forum 

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


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • 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)
  • 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)
  • Pedestrians walk along the barrier set by police on 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)
Hot Forum Discussion