Government efforts to cool the housing market are having little effect, and a surge in student numbers in recent years will soon spill over into the market, pushing prices even higher. China Economy discusses the effect of the changing demographics, and argues that stronger government efforts are needed to cool the sector.Those who expected housing prices to plummet in China took a strong blow with the State Development and Reform‘s recent release of housing indicators for 70 medium and large cities. Instead of dropping, housing prices have kept rising. In the first four months of 2007, prices for newly built apartments climbed around 6.0%. Housing prices in China’s wealthiest and most expensive city, Shanghai, exceeded US$1,315 (RMB10,000) per square meter, more than three times as much as the average monthly wage in the city.In even crueler news for the desperate homebuyers in China, the number of students sitting college admission exams this year reached a record 10 million.What does this have to do with the surging housing price?The correlation is here. These 10 million students, who are now in their late teens, will enter the labor market

You are currently reading 206 words of 627 total words in this article.
To continue reading this article, you must be a subscriber. Log in now..

Finish this article for free.
C-M-O-D-O AUTHENTIC SITE PayPal
@2014 China Economy @ China Perspective.
All Right Reserved.
Server SSL Certificate