Are House Prices Rising Too Fast in China?
IMF Working Papers, December 1, 2010
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Bibliographic details
- Authors: Ashvin Ahuja, Lillian Cheung, Gaofeng Han, Nathan Porter, Wenlang Zhang
- Published: December 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455210817.001
Summary findings
- Sharp increase in house prices combined with the extraordinary Chinese lending growth during 2009 has led to concerns of an emerging real estate bubble.
- For China as a whole, the current levels of house prices do not seem significantly higher than would be justified by underlying fundamentals.
- There are signs of overvaluation in some cities’ mass-market and luxury segments.
- Unlike advanced economies before 2007-8, prices in China have tended to correct frequently.
- 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.
Authors, publication, and identifiers
- Authors: Ashvin Ahuja, Lillian Cheung, Gaofeng Han, Nathan Porter, Wenlang Zhang
- Date: December 1, 2010
- Series: Working Paper No. 2010/274
- Issue: 274
- Volume: 2010
- Pages: 31
- DOI: https://doi.org/10.5089/9781455210817.001
- Stock No: WPIEA2010274
- ISBN: 9781455210817
- ISSN: 1018-5941
Subjects and keywords
- Subject: Asset prices, Housing prices, Land prices, Mortgages, Real interest rates
- Keywords: benchmark price, house price, price misalignment, property price, WP
Source: IMF Working Paper No. 2010/274, "Are House Prices Rising Too Fast in China?" by Ashvin Ahuja, Lillian Cheung, Gaofeng Han, Nathan Porter, and Wenlang Zhang (December 1, 2010); DOI: https://doi.org/10.5089/9781455210817.001