Policy in 2013 Did Not Affect Housing Prices In Guangzhou Continue Rising

From 2003 to 2011, the primary, second-hand houses of Guangzhou district 10 grew by an average of 16.0% and 13.3% respectively. Influenced by supply and demand tension, in 2006 and 2007, house prices rose 24% and 35.1% respectively. Recently , Guangzhou Development Research Institute of Guangzhou University released the “Guangzhou economic situation analysis and prediction in 2013″. Analysis pointed out that since 2011 Guangzhou has entered the era of high house prices. In 2011 Guangzhou housing prices and urban residents total household income ratio has reached 9.502 , more than the United Nations and the World Bank standard range.

House price growth deviates from the level of GDP growth

Studies have shown that since 2003 Guangzhou residential market transaction prices have showed a steady rising trend. In 2011, primary housing transaction price of Guangzhou district 10 was registered of 12725 yuan per square meter, and the second-hand housing transaction price was 7142 yuan per square meter. Deducted by an average of 3% of price changes, the actual average annual growth of 13% and 13%. Studies suggest that GDP and per capita disposable income of urban residents are the two most important indicators that affect the housing price. It is worth noting that since 2006 the growth of the primary residential market prices have deviated from the level of GDP and income growth.

Rates in high-income families’s acceptable range

Studies suggest that in terms of real purchasing power, though in recent years, Guangzhou Residential market prices rose faster, In 2011, the ratio of house prices and household income urban residents has reached 9.502, which beyond  the United Nations and the world bank’s standard range. However, it still can be recepted to high-income families.

Regulation does not affect the price to continue rising

The study also pointed out that the macro-control policies have not changed the basic trend of Guangzhou housing prices running. The price has been rising since 2003. Since 2011, the purchase of credit limit policy led to demand reduction and slow down the housing price rising trend. Meanwhile, influenced by the limited purchase policy, some investors turned to stores and office markets, so since 2011, prices for these two markets have maintained a steady growth trend.

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Annine Pan

About Annine Pan

Annie Pan is a part-time writer who enjoys exploring new things. Graduating from Huaiyin Normal University with a major in English, she is interested in finding the difference between foreign culture and Chinese culture. She has published many blog articles about the diiferent aspects of culture for several years.

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