Date
20 November 2017
Home selling prices in Wenzhou have dropped for 34 straight months after the property bubble burst in 2010. Photo: Bloomberg
Home selling prices in Wenzhou have dropped for 34 straight months after the property bubble burst in 2010. Photo: Bloomberg

Wenzhou eases home purchase curbs

Wenzhou, a coastal city in Zhejiang province known for the entrepreneurship of its residents, has quietly relaxed its home purchase limits, but local officials have refused to verify the news.

The directive was only issued verbally, and industry players were told to implement it without any publicity, the National Business Daily reported Tuesday, citing industry sources.

Many housing agents in Wenzhou, which has seen its home selling prices drop for 34 straight months after the property bubble burst in 2010, said there are no more stringent checks on the buyers’ property ownerships when they want to purchase more homes.

But the Wenzhou Commission of Housing and Urban-Rural Development did not respond when asked about the reports, only saying that they have not received a formal notice about the restrictions being eased. 

The new policy is seen to have immediately boosted housing transactions in the city, reflecting the strong purchasing power of people living in Wenzhou.

Home sales rose 60 percent to 875 units last week compared with the previous month, while the transaction area has nearly doubled to 123,000 square meters.

The number of prospective buyers has also climbed since the easing of restrictions. People making inquiries on properties for sale increased by 30 percent in June and July compared with the previous months.

With the market revival, property developers have become more active in land purchases. During an auction of seven sites on July 7, many were sold with high premium rates after going through several rounds of bidding, the report said.

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JH/JP/CG

EJ Insight reporter

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