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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (65183)	8/12/2010 4:58:32 AM
From: elmatador	Respond to of 220062

Professor Wang’s conclusions cast doubt on much of the arguments that China is in the throws of a epic property bubble. As he writes: based on the official average urban income from China’s National Statistics Bureau (NSB), China’s current affordability ratio is 8x (that is, it takes eight years’ average income to buy an average residential property unit) – lower than for city states, such as Singapore (probably not a relevant comparison), but significantly higher than for large and developed continental nations such as the US. However, if we consider the impact of the grey income, China’s national affordability ratio drops to 4x –similar to that in the US. If the effect of grey income is included, China’s Gini index is likely to be more than 0.55 – similar to many South American countries’. This raises the question over whether strong housing demand in China is mainly driven by self-use or investment by rich people. We think both are important drivers. sinocism.com