Home News Desperate Chinese property developer willing to ‘swap wheat for house’

Desperate Chinese property developer willing to ‘swap wheat for house’

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Screenshots of Central China Real Estate Advertising Allowing Buyers to Use Garlic Crops to Pay a Down Payment for Real Estate

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Hong Kong, June 21 (Reuters)-Desperate developers in China’s softened real estate market have recently proposed to receive wheat and garlic as downpayments and are coming up with new promotions to attract buyers.

One ad for Central China real estate based in Henan (0832.HK) The title says “Exchange wheat for home”, which is 160,000 yuan for buyers at a price of 2 yuan per catty, using crops, which is a unit of mass in China equivalent to about 500 grams. It shows that the down payment ($ 23,900.22) can be offset. One of its developments.

A real estate agent in Central China who responded to the phone number in the ad said the promotion, primarily targeting local farmers, would begin on Monday and end on July 10. Hennan’s development in Central State will provide about 600,000 homes, said an agent who declined to give her name to 900,000 yuan.

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Central China Real Estate did not respond to Reuters’ request for comment.

At the end of last month, another Chinese ad said that buyers of homes with different developments could pay a garlic down payment for 5 yuan per catty.

According to the ad, the garlic promotion attracted 30 transactions with 852 visits and 860,000 garlic transactions in the available 16 days.

The wholesale market price of garlic and wheat is 1.5 yuan per 500 grams.

Real estate developers have seen a surge in January-May transactions, coupled with China’s strict COVID-19 restraints and concerns over Beijing’s 2022 economic growth target of 5.5% deeper real estate revision clouds. , Struggling to increase sales. read more

More common promotions by developers include free parking and post-purchase refurbishment.

Cities across China have introduced hundreds of real estate mitigation measures this year to revive the sector, which accounts for a quarter of the world’s second-largest economy.

Such measures include small down payments, subsidies, and better conditions for households with multiple children.

Realtors said buyer sentiment is beginning to improve, but it is too early to call a turning point due to the many economic uncertainties facing China.

Andy Lee, CEO of real estate agent Centaline China, said:

($ 1 = 6.6945 RMB)

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Report by Claire Jim; Edited by Marius Zaharia and Christian Schmollinger

Our criteria: Thomson Reuters trusts the principles.

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