BEIJING: Struggling developers in China have started taking payment intended for homes in watermelons, peaches and other farming produce, state media reported Sunday (Jul 3), as they attempt to lure buyers deterred by a property marketplace slump.
China’s housing market continues to be hit by a decreasing economy and debt crisis precipitated by a government ban on builders taking deposits before construction starts on a project.
One developer within the eastern city of Nanjing said it would accept truckloads of watermelons worth up to a hundred, 000 yuan since downpayment from nearby farmers, state-run Cina News Weekly reported.
In the nearby small town of Wuxi, another developer was taking peaches as payment, the magazine said.
Homebuyers in Qi county, a major garlic-producing region in central China’s Henan province, can exchange their own produce at three times the market price to stay part of their deposit.
Accepting crops at inflated prices has allowed developers to provide steeper discounts on homes than permitted by local governments while tapping into a good underserved market.
“On the event of the new garlic season, the company made a resolute choice to benefit garlic clove farmers in Qi county, ” homebuilder Central China Management said on social networking in late May.
“We are assisting farmers with adore, and making it simpler for them to buy homes. ”
Regarding 30 properties had been sold since the garlic clove campaign was launched, this added.
Home sales in China measured by flooring area have slid for 11 consecutive months and were down 31. 5 per cent in May compared to the same month a year ago, official data displays.
Read more on: https://www.channelnewsasia.com/asia/china-developers-farmers-pay-homes-watermelon-peach-garlic-2787421