China Tale of Two-Tier Cities Shows Record Home-Price Gap: ChartBloomberg News
New-home prices in China have diverged at a record pace between "tier-one" cities such as Beijing and Shanghai and "tier-two" hubs including Chengdu and Xi’an.
The average price in the four first-tier cities, which also comprise the trading centers of Shenzhen and Guangzhou, was 30,412 yuan ($4,622) per square meter in December, 2.8 times the 10,821 yuan average in the mostly provincial second-tier cities, according to indexes based on data compiled by China Real Estate Information Corp.
Prices in Shenzhen, where new-home prices surged 58 percent from a year earlier, was seven times the average in Changchun, which has the cheapest houses among the 23 second-tier cities. Authorities have rolled out easing measures targeting regions with a surplus of unsold homes as they try to narrow the gap. China’s home-price recovery spread to more cities in December, official data show.
— With assistance by Emma Dong