Lhasa housing prices are relatively stable, averaging between 8,000 to 12,000 CNY per square meter in 2022. Urban areas like the old city and new developments command higher rates due to limited land supply and tourism demand. Government policies restrict foreign ownership and speculative buying, ensuring controlled growth.

The stability in Lhasa’s housing market stems from strict government regulations and a focus on balanced urban development. The average price range reflects a combination of supply constraints and controlled demand. Urban core areas, particularly near historical sites and commercial hubs, saw prices exceeding 12,000 CNY per square meter in 2022, driven by tourism infrastructure projects and limited residential land availability. Rural and suburban regions, such as areas outside the Lhasa Urban Planning boundary, remain cheaper, averaging 6,000 to 8,000 CNY per square meter.

Tibet’s government enforces a policy of "limited land supply" to prevent overdevelopment, which has suppressed price volatility. In 2022, the government approved only 15% of the total land allocated for residential construction in Lhasa, compared to 30% in major Chinese cities like Shanghai or Beijing. This restriction directly impacts housing availability, maintaining higher prices in urban zones. Additionally, foreign ownership is prohibited without special government approval, reducing speculative investment. According to the Lhasa Real Estate Association, foreign buyers accounted for less than 1% of property transactions in 2022, a negligible influence on market dynamics.

Tourism also plays a role. Lhasa’s status as a cultural destination attracts international visitors, indirectly boosting demand for housing in areas frequented by tourists. However, the government prioritizes tourism-related infrastructure over residential expansion, limiting new housing supply. For example, the 2021–2025 urban master plan allocates 70% of new construction funds to tourism and transportation projects, leaving only 30% for residential development.

Economically, Tibet’s GDP growth averaged 6.5% annually from 2020 to 2022, slower than China’s national average of 8.4%. This slower growth moderates housing demand, preventing the speculative bubbles seen in coastal cities. Moreover, income levels in Lhasa are lower than national averages, with the average monthly wage at 4,200 CNY in 2022, compared to 8,500 CNY in Tier-1 cities. This disparity limits affordability, constraining upward price pressure.

In 2023, prices rose slightly by 2–3% in central Lhasa due to new high-end developments targeting domestic buyers, but overall market growth remains modest. The government continues to emphasize "sustainable development," prioritizing quality over quantity in housing projects. For instance, the 2023 budget allocated 500 million CNY for eco-friendly residential complexes, which are priced 20% higher than conventional housing but attract middle-class buyers.

In summary, Lhasa’s housing prices are shaped by regulatory control, limited supply, and a focus on tourism and sustainability. While urban areas remain expensive, strict policies and economic factors prevent unchecked growth, ensuring stability but also slower market expansion compared to other regions in China.