Figures from the National Bureau of Statistics and survey data produced by the Soufun housing real estate portal show that apartment prices in Beijing, Shenzhen and Guangzhou (prices per square metre of floorspace) went into decline in the latter of 2018. Shanghai apartment prices fell all last year. Even with the price drops, apartment prices in big cities are stratospheric relative to personal incomes.
Risks to the real estate sector persist. Many construction companies are deeply in debt. A significant adjustment in housing prices would spell trouble for builders and households, and ultimately the banks that finance them.
Average apartment prices in China’s cities
Sources: NBS, CEIC and BOFIT.