Housing Prices in Shanghai City

Housing Prices in Shanghai City

Housing prices are hot-button issue in recent years. Shanghai, a rapidly developing city, which is the epitome of the public of China, has three typical housing prices characteristics. The three elements are inflated property, skyrocketing housing trends and huge pressure of purchase.

To a large extent, inflated property demands lead to the increase of housing prices. The primary reason for owning a home is that more adults, especially for newlyweds who want to have larger individual spaces do not willing to live with parents all the time. Besides, skyrocketing housing prices arouse other demands such as property speculation. The majority of speculator premise that housing prices will always go up; therefore, they buy houses to earn profits from the differences. All these factors stimulate the price increase.

In addition, here are some figures to illustrate the housing prices trend is sustainable growth. The average per square meter for new construction in 1999, 2004, 2008, 2011, 2013 respective are 3176, 6385, 13411, 27454 and 31260 Yuan in shanghai. Obviously, the price per square mater doubled from 1999 to 2004 while between 2008 and 2011 it doubled again. In general, although the growth rate slowed down after 2011, the prices continual rose.

However, as housing prices soar, the much more pressure in affording to the houses is coming. For example, one square ma as a percentage of annual income rose from 20% to 52% in the past 14 years. In other wards, nowadays, people are supposed to pay half of their annual income for one square meter. As a result of it, it is a proper choice that purchases a second-hand house to replace the new one.

In conclusion, inflated demands make the housing trends still keep high, and bring huge pressure in dairy life, and these characteristics are significant elements in housing prices in shanghai city.