The Unbearable Heaviness of China’s Housing Price Bubble

Chinese people still have relatively low income, after decades of rapid economic growth.

However, China seems enjoy its extemely high housing price, according to OECD data.

Apartment prices in China’s four major cities (北上广深) are among the highest in the world.

The plot below explains why China’s young working class cannot afford to buy apartments in big cities without support from their parents.

Further though: Why local governments favour high property prices? My guess is shown below.

Reference

• The World Bank (2020). GNI per capita data. Retrieved from https://data.worldbank.org/indicator/NY.GNP.PCAP.CD
• OECD (2020). Housing prices. Retrieved from https://data.oecd.org/price/housing-prices.htm
• Numbeo (2020) Price per Square Meter to Buy Apartment in City Centre. Retrieved from https://www.numbeo.com/property-investment/
• Numbeo (2020) Mortgage as Percentage of Income. Retrieved from https://www.numbeo.com/property-investment/
• Minitry of Finance of China (2012-2019) Yearly financial report. Retrieved from http://www.mof.gov.cn/gp/xxgkml/gks/201401/t20140123_2510881.html http://www.mof.gov.cn/gp/xxgkml/gks/201501/t20150130_2511173.html, http://www.mof.gov.cn/gp/xxgkml/gks/201601/t20160129_2511546.html, http://www.mof.gov.cn/gp/xxgkml/gks/201701/t20170123_2563634.html, http://www.gov.cn/xinwen/2018-01/25/content_5260672.htm, http://www.gov.cn/xinwen/2019-01/23/content_5361095.htm, http://www.gov.cn/xinwen/2020-02/10/content_5476906.htm,