Saturday, January 2, 2010
China house prices are 80x earnings. Makes the UK look quite affordable….
Millions of Chinese are pursuing property with a zeal once typical of house-happy Americans. Some Chinese are plunking down wads of cash for homes. Others are taking out mortgages at record levels. Developers are snapping up land for luxury high-rises and villas, and the banks are eagerly funding them. Some local officials are even building towns from scratch in the desert, certain that demand wonâ€™t flag. And if families can swing it, they buy two apartments: one to live in, one to flip when prices jump further. In Beijing, a typical 1,000-square-foot apartment costs about 80 times the average annual income of the cityâ€™s residents.