Latest News:  
Beijing   Sunny/Cloudy    16 / 6 ℃  City Forecast

English>>China Business

Wenzhou property 'crash' may spread

(Global Times)

11:03, November 12, 2012

According to recent figures from the Zhejiang Provincial Bureau of Statistics, property prices in Wenzhou are on the decline. In fact, in some developments, homes are selling for half as much now as they were last year. To lure in buyers as prices sag, some property firms are asking for just a 20 percent down payment, well below the up-front sum many firms demanded in the past.

But while lower down payments may attract some potential buyers, they won't be enough to lift the city's home market out of its deepening rut.

Such a strategy will, if anything, just allow developers to reduce their inventory; it won't do anything to bring demand, or prices, back up to where they were in the past - at least not any time soon.

With home sales and price trends in Wenzhou often regarded as a bellwether for the rest of China, if the recent crash in the city's home market portends what's in store for elsewhere, the fate of developers nationwide is not looking promising.

The author is Jiang Debin, an economic commentator.

Recommended Features:
A Decade of Fastest Development Eastern Boom Lightens Western Gloom A Journey to Cultural Renaissance
Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR 13th Int'l Automobile Industry Exhibition
China Int'l Industry Fair opens in Shanghai Caofeidian coal wharf put into use Canton Fair wraps up on Sunday


Leave your comment0 comments

  1. Name


Selections for you

  1. Devil training of PLA

  2. Weekly review of military photos

  3. Most expensive diamonds in the world

  4. Skating party for singles held

  5. Beijing experiences windy weather

  6. Taobao bonanza breaks records

  7. Shanghai Int'l Puppet Festival opens

  8. Angry Birds Invading China’s Mcdonald

Most Popular


  1. Online amenities create utopia of idiots
  2. Economic ranking means less for public
  3. Commentary: What path will economy take
  4. Growth of for-profit hospitals should be limited
  5. Mahjong: to protect or to crack down?
  6. Commertary: Finding a dynamic balance
  7. Central bank to use more open-market operation
  8. Commentary: Have confidence in China
  9. Chicagoans await election with mixed feelings
  10. Confident beginning paves way for happy marriage

What’s happening in China

Beijing experiences windy weather, temperature drop

  1. State Council’s 1st Weibo
  2. Rare mutation solves murder
  3. City unlocks restrooms for public
  4. 'Grid system' ensures well-being of the elderly
  5. Singles declare love ... for online shopping