Flat prices in Beijing increase to 22 times income levels

20 Jul 2010

According to Chinese state media, a typical flat in Beijing costs around 22 times the average incomes in the city, emphasising one of the challenges faced by China in providing affordable housing amidst a boom in  the property market.

According to the news report, a 90-sq-m apartment unit in Beijing went for 1.6 million yuan (S$325,331) in 2009, compared to an average household disposable income of almost 71,000 yuan, based on city figures.

The construction of government-subsidised low-cost housing units was not able to meet demand, said the report, which also called on several policy-makers to raise the supply of land for these projects.

Chinese authorities recently issued several measures aimed at preventing the real estate market from overheating and causing a property bubble that could derail the third-largest economy in the world.

According to official data, property prices in the country dropped 0.1 percent from May to June, the first monthly decline since Q1 last year.

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