Coldwell Banker Premier Realty

Is the property market shifting in China


A look at price-income ratios in sample nations
Posted: July 25, 2011 by John McClelland

Jeremy Warner, writing in the UK Telegraph, presents an interesting chart showing price-income ratios for various Chinese cities as well as a sample of other nations. Beijing and Shanghai look particularly scary. Income growth is really going to have to keep going up at a fast pace or this is likely to be a problem. Chinese authorities are aware of this but it is difficult to forecast what happens in a slowdown. Transaction volume is beginning to slow.

By comparison, U.S housing, while it could still be overvalued in some areas (certainly not Las Vegas or Phoenix which are looking really cheap), it looks cheap by comparison.







http://blogs.telegraph.co.uk/finance/jeremywarner/100011023/chinas-spectacular-real-estate-bubble-is-about-to-go-pop/

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