The bubbles brewing in China´s housing market have slowly floated away over the past years, and now the market maintains sound growth, said Yang Hongxu, vice director of E-house China R&D Institute, in a recently published research report.
The conclusion was based on Yang´s estimated housing price-to-income ratio, a basic affordability measure for housing in a given area with a range of three-six recognized as reasonable.
Yang said that China saw the ratio in 2008 decline to the level of 2004 and forecast that it would further fall to 6.2 in 2009.
China has experienced rapid growth in the housing price-to-income ratio in recent years with the ratio fluctuating around 5.5-7.5 per cent from 1996 to 2008, higher than that of developed countries in the same period.
