[quote=Rich Toscano]Hi ocr – Where did you find that data on real estate to GDP ratio? That was a really interesting stat so I went looking for more info, and found this from PIMCO:
“We estimate China’s property market to be worth around US$22 trillion, approximately 1.8 times the size of its GDP in 2017.”
The ratio of 5:1 comes from Taiwanese news outlet this week, sorry, not in English. I just checked the numbers, they are using $62 trillion as the current Chinese property valuation instead of the $22 trillion cited in the PIMCO article. Plus they “rounded up” from 4.4 to 5.
Valuation in an opaque market like China is always difficult, but 4.4:1 ratio seems legit given ratio was 3.7:1 in 2016. $700k plus for an average sized condo in Xiamen (GDP per capita is $14k) seems to be in line with the higher ratio estimate.
