China’s real estate market has seen a surge in commercial housing prices over the past decade, in tandem with a plunge in the rent-to-price ratio.
A report from Diyi Caijing indicates that China’s national average commercial housing price has risen from 4,681 yuan per square metre in 2009 to 9,337 yuan per square metre in October 2019, for a rough doubling in the space of a decade.
This rise compares to a 158% increase in China’s GDP during the period from 2009 to 2018, as well as an increase in average disposable income in China of 156.6%.
A recent report from Zhuge Zhaofang further indicates that rents in China have struggled to keep pace with the surging price of real estate.
According to the report the average rent-to-price ratio for 50 key Chinese cities currently stands at 1:592, as compared to levels of 1:300 – 1:200 which are generally considered more balanced.