Yinchuan defies China’s housing slump

2 March 2009

Despite the recent housing slump in China, property prices have continued to appreciate in some regions of the country, with Yinchuan, the capital of northwest China's Ningxia Hui autonomous region, recording the greatest capital growth in the past six months.

Average residential property prices in China’s 70 major cities have depreciated by 0.9% year-on-year, according to the National Development and Reform Commission and the National Bureau of Statistics. Some of the worst price falls have been recorded in some of the eastern cities, such as Shenzhen, where annual prices fell 16.5% by January.

However, in Yinchuan the prices of new homes rose 8.8% year-on-year in January. Apartments in the city’s downtown areas are typically selling for around £464sqm.

However, prices in downtown Yinchuan are still far cheaper than those in Beijing or Shanghai, where new homes sell for an average of between £1,500 and £2,200.

The city's migrant population is said to be responsible for pushing up housing prices.