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In its annual economic blue book, the Chinese Academy of social sciences (CASS) stated that a fresh typical Chinese property now 8.8 years pay average.

In addition, CASS said House prices are rising much more wages, putting more property out of reach of the average Chinese.

CASS has estimated that Chinese real estate prices had increased by 15pc this year, although increases in some cities have been much steeper.

In contrast, typical House of the United Kingdom expenses wages to buy according to the National Building Society, five years and average long term of United Kingdom is four years of earnings.

"Price of the room have increased steadily for years," said Zhou Linhua, co-author of the CASS report. "It was inflated expectations of investors of high performance which introduces more money market flood and fuelled bubble."

The Chinese Government has repeatedly tried to cool the real estate market arrow this year, raising requirements for filing, increased costs and mortgage loan margin for secondary residences.

The Bank of China, the Central Bank, said lenders to raise minimum reserves they hold as a proportion of deposits by half a point percentage, in an attempt to contain cool inflationary pressures and loans.

Friday, official statistics have shown that prices in 70 cities had recorded their third place directly sur-mois in November, 0 3pc mounted on the previous month and at an annual rate of 7 7pc.

"House prices are likely to remain high for some time," predicts Matthew Fang, an analyst at Guosen Securities, adding that the demand was strong and that inflation has been increased.

Interest rate real negative helped persuade many Chinese to invest in bricks and mortar rather than leave their money in the Bank, and there is a continuing need for Chinese men have their own assets until they can marry.

Attempting to quantify the size of the bubble property calculated CASS what she thought was award of the "real" House 35 large and medium-September Eleven statistics index using cities, including per capita disposable income, saving deposits, the number of doctors and students of the University, retail sales volumes and levels of investment in local capital.

According to figures, new homes in 35 cities were more than 50pc their fair value. Prices in Fuzhou are too expensive 70pc of Hangzhou are surcingle 66pc. New homes in Shanghai are surcingle 37pc and those in Beijing are almost surcingle 50pc.

However, the CASS report attracted instant criticism. Ren Zhiqiang, President of Beijing Huayuan, one of the largest developers Chinese say that China has a highest rates in the world of private property, with near 80pc, or 500 million Chinese, owner of their homes. "A reasonable conclusion that would be Chinese 85pc cannot afford to buy a second home,"he said.""

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