Chinese Real Estate P/Es Home Price to Income Ratios

35 cities the average price earnings ratio of 8.7, has 14 cities the price earnings ratio is higher than the average. Two typical cities, Hangzhou property market in 2014 was significantly cool, reasonable price earnings ratio tends to be. And Xiamen prices rose, the price earnings ratio grew too fast, healthy development of the property market negatively.

Sub-regional perspective, the eastern cities continuation of last year's ranking, and a wide gap. Surprisingly, Shenzhen and Beijing ranked first again, the price earnings ratio as high as 20.2; second-tier cities in eastern price earnings ratio climbed 0.4 from last year, the average is 9.2; the middle-tier cities increased income housing 60%; second-tier cities in the west continued the downward trend. But excluding marketable type of affordable housing, in 2014 the 35 large and medium cities had an average price earnings ratio of 10.6, which Shenzhen, Beijing, Shanghai, Fuzhou, Xiamen, five cities ahead, Shenzhen up 21.7, surpassing Beijing ranks first. Overall, the price earnings ratio ranking, mostly east of the city.

Data was based on new home prices though.

From my own estimate of local prices and rents, P/Es of 50 to 100 are not uncommon in Beijing, which is why equities were so much more attractive in recent years.

iFeng: 内地35城市房价收入比出炉：深圳超北京居第一(名单)