Are House Prices Rising Too Fast in China?
Author | : Mr.Ashvin Ahuja |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 2010-12-01 |
ISBN-10 | : 9781455210817 |
ISBN-13 | : 1455210811 |
Rating | : 4/5 (811 Downloads) |
Download or read book Are House Prices Rising Too Fast in China? written by Mr.Ashvin Ahuja and published by International Monetary Fund. This book was released on 2010-12-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sharp increase in house prices combined with the extraordinary Chinese lending growth during 2009 has led to concerns of an emerging real estate bubble. We find that, for China as a whole, the current levels of house prices do not seem significantly higher than would be justified by underlying fundamentals. However, there are signs of overvaluation in some cities’ mass-market and luxury segments. Unlike advanced economies before 2007-8, prices have tended to correct frequently in China.Given persistently low real interest rates, lack of alternative investment and mortgage-to-GDP trend, rapid property price growth in China has, and will continue to have,a structural driver.