From China.org.cn:
The price-to-rent ratio for second-hand houses in some of China’s big cities have gone over the international warning line, said the 2007 real estate blue paper released by China Academy of Social Sciences (CASS).
The price-to-rent ratio, or the rent for one sq. m. of floor space divided by its sales price, is an indicator of real estate market move, said Shan Jingjing with the research center of urban development and environment protection of CASS, adding that the lower the ratio is the better the housing market does.
A rapid increase of house prices combined with a flat renting market can signal the onset of a bubble, said the researcher.[Full Text]
-See Chinese reports
