tag:blogger.com,1999:blog-8882885377462271395.post4483061936449186025..comments2024-03-26T15:38:10.097+03:00Comments on Emre Deliveli's Blog on Economics: More on the August 3 Hurriyet columnEmre Delivelihttp://www.blogger.com/profile/01768296361677773172noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8882885377462271395.post-4593861600621825932009-08-22T11:02:06.474+03:002009-08-22T11:02:06.474+03:00Thanks Emre for the links. They are somewhat helpf...Thanks Emre for the links. They are somewhat helpful but I am surprised by the lack of quality data about incomes and house prices. The name of the researcher is Cigdem Akin, btw.<br /><br />I did some back of the napkin calculations with rough assumptions. Looking at Garanti's website, the average price per m2 is about 1100 TL in Istanbul. If we assume a median house would be about 80 m2 (it's probably smaller but I'd like to be conservative in my estimates), the median house would be roughly 90,000 TL.<br /><br />As for incomes, the information is really sketchy so I'll just make some assumptions here. In 2008, Australia's GDP per capita (nominal values) in US$ was 47,400 and Turkey's was US$10,472, according to IMF. The median Australian household income is about AU$60,000. If we assume that the ratio of household income to per capita GDP is about the same in Australia and in Turkey, that puts the median household income in Turkey at roughly AU$13,255 or about 16,000 TL, using the current 1.2 exchange rate. <br /><br />Therefore, the median house is about 90,000 TL and the median income is about 16,000, which implies a house price/income ratio of roughly 5.5, a much lower ratio than the 7.5 (closer to 8 these days) we have in Australia.<br /><br />It's official then: Australia is the richest banana republic in the world.hthttps://www.blogger.com/profile/11965266591058176123noreply@blogger.com