China’s Property: Bubble, Bubble, Toil and Trouble

As economist Xie points out, residential prices in China relative to per capita income are far and away the highest in the world. The housing price-to-income ratio in urban China is over 20, which means it takes the average citizen’s total wages for 20 years to buy an average dwelling. (By comparison, the highest housing affordability ratio for a U.S. city — Honolulu — is 8.2.)

Read more: http://www.time.com/time/magazine/article/0,9171,1971284,00.html#ixzz0iFWqVIxE

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