Wenzhou Property Market on Fire, But Will It Last?

Home prices in Wenzhou are down by nearly 25% from 2010 levels for various reasons. Aside from overbuilding and the speculative fever, the city has suffered as low cost manufacturers saw their profit margins drop to zero as early as 2010 and 2011. Home prices peaked in 2011 and then began a 40 month decline. Sales were up strongly last month and in one downtown area, prices were up 19% over March levels. Now home buyers are waiting in line again.

One anecdote: a real estate agent who closed shop 3 years ago is back in business. She says the reason for the waiting in lines is two fold: the government stimulus policies and school related purchases. In China, as in the U.S., the neighborhood one lives determines the public school a child will attend.

It closed more than three years of real estate agent, re-opened

View: It is widely expected to have a good property market; the school district room plus the effect of the New Deal, the birth of Wenzhou property market phenomenon.

Ms. Xu, who lives in Wenzhou new discovery on Ayutthaya Road, recently, a couple of hundred meters long alley cell downstairs, all of a sudden started a real estate agent to do business three or four shops.

Ms. Xu clearly remember one of the shops, real estate agent did 45 years ago, "Later, probably because Wenzhou property market downturn, leading to bad business reasons, this shop has been transferred. Shop early and later sold, opened a snack shop, also worked as courier company's warehouse, the owner for a wave of another wave. "

Ms. Xu did not know that this real estate agent, in fact, that a more than three years ago. Fang boss re-lease them back to the pavement, she went on with her real estate agent business.

Fang said that this year, especially in the last month, she saw Wenzhou City real estate market in a series of favorable policies, "obviously feel the people around, to restore the confidence of buyers, we again have the property market in Wenzhou good anticipation. "

Fang is a native of Wenzhou, he has been doing real estate agent business. She said that Wenzhou People buy a house has a characteristic, 'always' buy or not buy up', many people purchase, house prices continued to fall in the case may be watching, and once you have good policy, a lot of people will pick up Buy courage and confidence. "

"Last month, every day someone to consult buy, wards thing." Fang said, based on her experience, which illustrates the Wenzhou real estate market is getting warmer. In fact, the area where Fang's intermediary, just temporary school district room. Fang said that after her shop re-opened, made first business, is a set of over 60 square meters of school district room, total close to 200 million.

Fang speculated that another reason for the last month in Wenzhou suddenly hot property, with an annual 3, 4, May is the time to focus school district housing transactions are also related. "School district housing plus the effect of the New Deal, gave birth to a new situation in the property market in Wenzhou." Fang said.

iFeng: 某城楼市又现排队抢房现象 房价又要大涨了?