A new NBER working paper by Jing Wu, Joseph Gyourko, and Yongheng Deng used recorded prices for 300 residential land auctions in Beijing to develop the first constant-quality land-price series for a Chinese market. The study concludes that inflation-adjusted constant-quality land prices have increased by nearly 800% since 2003:Q1, with half that increase occurring over the past two years.
Chinese stock market decline began before that in Europe and coincided with measures in China to curb property speculation. As of the moment, the equity decline in China substantially exceeds that in Europe.
