On The Bright Side: Chinese Homes Starting To Become Affordable

Although the average laborer would need to save 20 year's salary to buy a home in Shenzhen, in much of China the house price to income ratio is coming down thanks to a combination of rising wages and falling prices.

Final results of the report show that in 2014 the national housing price earnings ratio of 7.1, compared with the 2013 level of 7.3, the 2014 price earnings ratio fell again, continuing a downward trend since 2010. From the absolute level of commodity housing price earnings ratio of view, it is also close to a reasonable range of 6-7.

...Shanghai E-House Research Institute to explain the background when interpreting this report, although the price earnings ratio is a universal indicator, it did not strictly define a reasonable range. However, according to World Bank statistics for 1998 on 96 regions of the world shows that in these regions the highest price-to-income ratio was 30, the lowest was 0.8, with an average of 8.4, with a median of 6.4, in general, in developed countries if the price-to-income ratio is more than 6 it can be regarded as a bubbly area.

iFeng: 房价收入比排行榜 7城市家庭需10年才能买房