Chinese real estate crack: “apartment for sale in exchange for grain”
The real estate situation in China is much more serious than is commonly believed. The market is so lacking in confidence and objectively misleading that real estate developers have been reduced to selling apartments in exchange for payments in agricultural products, such as wheat and garlic.
An announcement from developer Central China, headquartered in Henan, a central region, with the headline "trading grain for a home," says buyers can use the harvest to offset up to 160,000 yuan ($ 24,000) of down payment. purchase for an apartment in one of its real estate development complexes.
China's severe constraints on Covid-19, coupled with concerns about a deeper real estate correction, have clouded Beijing's economic growth target of 5.5% for 2022.
A central China sales agent said the wheat promotion was primarily aimed at farmers in the region. The promotion started on Monday and will end on July 10 for homes costing between 600,000 and 900,000 Yuan (around 80 to 120,000 Euros).
Central China Real Estate, the builder's sales unit, reported a 71.3% drop in sales in May compared to a year ago, while in the first five months, sales fell 48.6%. This explains why he decided to advertise such an eccentric means of payment.
At the end of last month, another Central China ad claimed that homebuyers in another real estate complex could pay the down payment on garlic, another very common commodity in China's agricultural sector. The promotion attracted 852 visits and 30 transactions, totaling around 500 tons of garlic, in the 16 days it was available. Garlic is paid 3 Yuan per kg at the market, so the company would have collected 1.5 million Yuan in garlic in exchange for six of its apartments.
However, the promotional imagination of Chinese real estate developers does not stop at this point: they also go so far as to offer free parking or after-sales customization work.
It is clear that many real estate operators are now in despair and are therefore satisfied with these at least eccentric tools. It is also a sign that customers must also find it expensive and complex to access financial instruments, otherwise they would take out a mortgage.
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The article Crack Chinese real estate: "apartment for sale in exchange for grain" comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/crack-immobiliare-cinese-vendesi-appartamento-in-cambio-di-grano/ on Sat, 25 Jun 2022 17:27:49 +0000.