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considered real estate sector One of the main drivers of the Chinese economy, and contributes about 30 percent of the country’s GDP, but real estate developers are facing a major crisis at the present time, with the sector shrinking and prices falling, after a government campaign on the market targeting speculative operations that contributed to raising prices strongly during the past years. .
Over the past two decades, investing in real estate has been a big bet in China due to the upward trend in prices since the early 2000s, fueling speculation in this $2.5 trillion market.
The turning point in this sector was in 2016, when Chinese President Xi Jinping announced that "Houses are built to live in, not to speculate"And recently, major real estate companies in China due to liquidity crises and stumbled when paying its obligations, which prompted it to search for any opportunity to increase sales, especially after the government banned it from receiving payments from consumers before starting any project.
A developer in the eastern city of Nanjing said it would accept shipments of watermelons worth up to 100,000 yuan as an advance payment from local farmers, China News Weekly reported." government, reported by Agence France-Presse.
The newspaper noted that another developer in the nearby small town of Wuxi was accepting shipments of peaches as down payment for home purchases.
Home buyers in Qi County, a major garlic producing region in central China’s Henan Province, can exchange their products at 3 times the market price to settle part of the down payment.
Accepting crops at inflated prices allowed developers to offer more discounts on homes than local governments would allow.
The home builder said on social media in late May: "On the occasion of the new garlic season, the company made a decisive decision in favor of the garlic farmers in Qi county.. We help the farmers kindly, and make it easier for them to buy homes.". She added that about 30 properties have been sold since the launch "garlic campaign".
According to official data, home sales In China, which is measured by floor area, it declined for 11 consecutive months, and decreased by 31.5 percent in May compared to the same month last year.
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considered real estate sector One of the main drivers of the Chinese economy, and contributes about 30 percent of the country’s GDP, but real estate developers are facing a major crisis at the present time, with the sector shrinking and prices falling, after a government campaign on the market targeting speculative operations that contributed to raising prices strongly during the past years. .
Over the past two decades, investing in real estate has been a big bet in China due to the upward trend in prices since the early 2000s, fueling speculation in this $2.5 trillion market.
The turning point in this sector was during 2016, when Chinese President Xi Jinping announced that “houses are built to live in, not to speculate.” During the recent period, major real estate companies in China due to liquidity crises and stumbled when paying its obligations, which prompted it to search for any opportunity to increase sales, especially after the government banned it from receiving payments from consumers before starting any project.
A developer in the eastern city of Nanjing said he would accept shipments of watermelons worth up to 100,000 yuan as an advance payment from local farmers, the state-run China News Weekly reported.
The newspaper noted that another developer in the nearby small town of Wuxi was accepting shipments of peaches as down payment for home purchases.
Home buyers in Qi County, a major garlic producing region in central China’s Henan Province, can exchange their products at 3 times the market price to settle part of the down payment.
Accepting crops at inflated prices allowed developers to offer more discounts on homes than local governments would allow.
“On the occasion of the new garlic season, the company has made a decisive decision for the benefit of garlic farmers in Qi Prefecture,” the home builder said on social media in late May. “We are kindly helping farmers, making it easier for them to buy homes.” She added that about 30 properties have been sold since the “garlic campaign” was launched.
According to official data, home sales In China, which is measured by floor area, it declined for 11 consecutive months, and decreased by 31.5 percent in May compared to the same month last year.