Mar 7 - House Price to Income Ratio Slips to 7.5 in 2011

Source: China Securities Journal, ChinaScope Financial (Data)

+       Report from E-House China R&D Institute on March 6 shows that the house price to income ratio in 2011 fell to 7.5, still comparatively high but close to what is considered the reasonable range of 6-7.

+       The house price to income ratio in the majority of China’s cities is still relatively high. The ratios in first-tier cities and Eastern Chinese cities are well above 10. In 2011, the ratio in Shenzhen, Hangzhou, Beijing, Xiamen, and Shanghai were 15.60, 14.10, 12.94, 12.48, and 12.40, respectively.

The national ratio of house prices to income has dropped for two consecutive years

The slower growth in housing prices is the prime reason why the house price/income ratio is declining

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