High prices strain property market, but no end in sight

• Published 29 Oct 2009

Although property prices continue upward, signs of a big bust remain at bay.

Real estate prices in first-tier cities have demonstrated a stubborn ability to stay afloat in recent weeks, despite tapering transaction volume and increasing warnings from market watchers that China is in the midst of a bubble. A look at the overall affordability of housing reveals that while the market is approaching the limits of what an average consumer might be able to pay, it does not appear to have reached the point where we should be concerned about a massive bust.

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