Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/220257
Title: HOUSING AFFORDABILITY IN CHINA : ARE RISING PROPERTY PRICES AS BAD AS ALL THAT?
Authors: SU YUANJIAN
Keywords: Real Estate
Fu Yuming
2010/2011 RE
China
Housing affordability
Housing affordability index
Price-To-Income Ratio
Issue Date: 12-Nov-2010
Citation: SU YUANJIAN (2010-11-12). HOUSING AFFORDABILITY IN CHINA : ARE RISING PROPERTY PRICES AS BAD AS ALL THAT?. ScholarBank@NUS Repository.
Abstract: Housing affordability has become a hot topic in the last decade replacing housing need as the center of debate on housing provision. This is, to large extent, due to the need to deal with current increasing evidence of housing crisis. This report aims to understand the current housing affordability condition in China by finding out how the property prices and household incomes have changed over the past decade in relation to the economic growth and demographic changes. In this report, Beijing and Shanghai, two major first-tier cities in China will be used as study samples to calculate Price-To-Income Ratio (PIR) and Housing Affordability Index (HAI), two widely used metrics for housing affordability study. The resultant values in PIR discover the fact that households in Beijing and Shanghai with average income level may experience difficulty in purchasing an average house of 60 m2, as it will cost them more than 23 times and 17 times of their annual incomes respectively. The results from the HAI model further reinforce the finding as their current annual incomes only comprise 15.9% and 20.8% of the required incomes for commercial mortgages, respectively. Therefore, current housing affordability in China may be worrisome due to rising property prices. However, housing affordability is not a simple question of comparing house prices to household incomes, but depends on many factors. The criticality of rising property prices and its impacts remained questionable.
URI: https://scholarbank.nus.edu.sg/handle/10635/220257
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Su Yuanjian 2010-2011.pdfHOUSING AFFORDABILITY IN CHINA1.62 MBAdobe PDF

RESTRICTED

NoneLog In

Page view(s)

10
checked on Sep 22, 2022

Download(s)

4
checked on Sep 22, 2022

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.