How to order
IMF Publications

Working Papers in full text
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All

Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile

Are House Prices Rising too Fast in China?

Author/Editor: Ashvin Ahuja | Lillian Cheung | Gaofeng Han | Nathan Porter | Wenlang Zhang
Authorized for Distribution: December 1, 2010
Electronic Access: Free Full Text (PDF file size is 1,158KB)
Use the free Adobe Acrobat Reader to view this PDF file.
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: 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.
Order a print copy
Series: Working Paper No. 10/274
Subject(s): Housing prices | China | Demand | Real estate prices | Price increases | Banking sector | Loans | Economic models
    Published:   December 1, 2010        
    ISBN/ISSN:   9781455210817/1018-5941   Format:   Paper
    Stock No:   WPIEA2010274   Pages:   31
    Price:   US$18.00
Please address any questions about this title to