Shenzhen has highest property value in China
Staff Reporter 2012-10-09 11:28
Despite the doubling of housing prices in China from 2009-2011, the purchasing of houses has not slowed at an ideal rate, leading analysts to the conclusion that there are a few Chinese with way too much money offsetting the market. (Fie photo/CNS)
Housing prices in China's southern Shenzhen Special Economic Zone reached to 24,550 yuan (US$3,900) per square meter, ranking first place in the country, followed by Shanghai and Beijing.
Hangzhou, capital of China's Zhejiang province, and Sanya, a city of China's southernmost Hainan Island, ranked third and fourth place.
The survey indicated that the average floor price among 100 major Chinese cities stood at 8,363 yuan (US$1,330) per square meter. The price of 86 of the cities went up from a year earlier while the price of the rest cities decreased, according to state-run Xinhua news agency.
The relatively higher housing price was pulled up by wealthy buyers, said a senior housing analyst, adding that many buyers still could pay in full for a house worth millions of yuan and the supply of commercial houses is still insufficient.
The analyst also responded to the speculation of the domestic housing market bubble, saying that as long as the demand for housing exists, transactions will be continuing.
The government's rapid issuance of money, much of which has fallen into the pockets of the wealthy, has led to their ability to blow millions on buying houses, said the analyst. The reasonable global housing price-to-income ratio should come to four to six but the figure is 15 in China, pointing out that a few rich have a relatively large proportion of houses, said the analyst.
The housing bubble can be seen definitely for now. The house price has been doubled from 2009 to 2011, meaning the increase of house price over the past two years has possibly offset the quota for the next three years.
