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Wenzhou makes progress in property market

chinadaily.com.cn | Updated: 2013-02-25 20:11

There was an apparent drop in transaction prices of residential property in Wenzhou, Zhejiang province, in 2012, a signal that speculative investments have been curbed, Wenzhou's price bureau said.

Both the city's newly built property prices and trade volume dropped in 2012, with the selling prices of newly built properties declining 14.3 percent year-on-year. Average residential property traded at 25,886 yuan ($4,110) per square meter in 2012, a drop of 24 percent year-on-year.

"According to our calculations, the ratio of the city's average property prices against the city's average income is about 15," Xinhuanet.com reported, citing an insider from Wenzhou's price bureau on Sunday. According to the insider, the ratio was 18 and 16 in 2010 and 2011, respectively.

There is still a lot of work to be done to bring Wenzhou's property prices close to average income ratios between 10 and 12, added the insider.

With speculative activities contained in the property market, most buyers are acquiring property for their own use.

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