China Upturn Shows Need to Rebalance GDP

Jin's firm specializes in property in Beijing's financial district and around 60 percent of the homes it sells are paid for immediately in cash, he said.

Long slog

Champion Court's eye-watering prices belie a dreary exterior, suggesting Beijing faces a long slog in curbing property inflation despite limits on home buying and hefty down payment rules.

An 80 square-meter, one-bedroom Champion Court flat was on the market last week for 7.2 million yuan (US$1.16 million). The bathroom had a rusty tub and a hole in the wall.

Built in 2004, the price of Champion Court apartments - which give buyers 61 years of ownership rights - have galloped 10-fold since, said Zeng, a property agent who also declined to give her full name.

Contrary to urban Chinese legend that blames coal mine bosses for driving up house prices with their newly-minted wealth, Zeng, whose office is near Champion Court, said owners are bankers or civil servants working in the financial district.

China's average annual urban disposable income in 2012 was 24,565 yuan.