over 50 millions of empty units pending for sale plus new buildings keeping up into the housing market, suggesting that the supplying side of the housings is bigger than the demanding and the housing prices must have consequently been declined in next year and beyond after.
Obviously, the price of a self-contained apartment cannot be higher than 3 times of a household annual income. For instance, this family income per year is 100,000 China Yuan (RMB), and then, 3 years income is 300, 000 RMB, which is able to afford the apartment price of 300, 000 RMB. Considering the living area is 90 sq meters, then the price of the apartment should be 3333 RMB/sq-meter. This may be a reasonable and acceptable price!
Apparently, the current price of housings in big China cities (e.g., Beijing) is weigh too high beyond affordability of normal families depending on wage incomes. This is a big problem to be resolved. A simple solution to this is to introduce the property tax, which may control the rising of housing prices. The annual tax rate is 1%.
Again, houses are for living, and working-class people can afford it.
Obviously, the price of a self-contained apartment cannot be higher than 3 times of a household annual income. For instance, this family income per year is 100,000 China Yuan (RMB), and then, 3 years income is 300, 000 RMB, which is able to afford the apartment price of 300, 000 RMB. Considering the living area is 90 sq meters, then the price of the apartment should be 3333 RMB/sq-meter. This may be a reasonable and acceptable price!
Apparently, the current price of housings in big China cities (e.g., Beijing) is weigh too high beyond affordability of normal families depending on wage incomes. This is a big problem to be resolved. A simple solution to this is to introduce the property tax, which may control the rising of housing prices. The annual tax rate is 1%.
Again, houses are for living, and working-class people can afford it.
