Real estate cauldron cooled by dousing rising land prices

STATISTICS SHOW THAT land prices in major cities have dropped year-on-year for the last four months in a row, while housing prices have risen slightly. Last month, the growth in the average housing price surpassed the growth in the price of land price for the first time since May 2016. Beijing News comments:

The price of land had been increasing since 2003 boosting the fast increase in housing prices.

That the housing price in some developed countries has largely remained stable is because the land price accounts for a comparatively low proportion of the housing price - 20 to 30 percent in the United States, 20 to 22 percent in Sweden and 25 to 38 percent in the United Kingdom for instance, so that the supply-demand relations are the main determinant of the housing price.