Housing Market in China: A Critical Survey of the Literature

This is a critical survey of the literature on the state of housing market in China. It highlights the high and rising cost of housing in major markets, which have attracted worldwide attention, as well as the interest of the Chinese government. It is difficult to understand the Chinese housing market without delving into the background. In this regard, the paper also examines the housing reforms and the growth of housing sector in general. Furthermore, the paper looks at Price-to-rent ratios in Beijing and seven other major housing markets in China. The findings suggest that even simple declines in expected appreciation would result in substantial price declines in these markets. It concludes that Price-to-income ratios are at their peak in Beijing and some selected Chinese housing markets.

Introduction

Since the beginning of People's Republic of China, most of the citizenry...
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