Chinese Adopt Unusual Tactics to Sell Homes Amid Real Estate Crisis |CNN Brazil

2022-06-22 15:09:26 By : Mr. Mechanic Tang

The industry's sales collapse has accelerated since China's Evergrande defaulted on its debt last year as the economy slowed.Laura He from CNN BusinessSome Chinese property developers are doing their best to attract buyers.From accepting grain or garlic as part of payment, to offering live pigs as an incentive to buyers, the unusual sales tactics underscore the dire state of China's vast real estate sector.A sales meltdown has accelerated since developer Evergrande defaulted on its debt last year as the economy slowed.Central China Real Estate, the largest developer in central Henan province, said in a recent announcement that it will accept wheat upfront payments for homes in Minquan County.The announcement was posted on the company's official WeChat account this week.Buyers can use the grain to offset up to 160,000 yuan (nearly $24,000) of their down payment.The new homes the company is offering sell for between $100,000 and $124,000, according to Leju Holdings, a real estate services provider.Wheat isn't the only pantry staple that's part of the developer's promotion campaign.In a separate announcement last month, the company said it was willing to accept garlic as input to a residential project in Qi County, Henan Province.“On the occasion of the new garlic season, the company has made a resolute decision to benefit garlic growers in Qi County,” the company said in a WeChat post late last month.“We are lovingly helping farmers and making it easier for them to buy homes,” he added.Henan province is an important production center in China for wheat and garlic.Central China Real Estate did not respond to a request for comment and deleted its wheat ad from WeChat on Wednesday.The campaign was widely publicized in Chinese media and trended on social media.“This is concrete proof of how weak demand for housing is,” said one Weibo user on Tuesday.China's property market is in a deep slump, hit by a slowing economy, strict restrictions due to Covid-19 and a debt crisis that is spreading among developers.Home sales fell 31.5% from January to May, accelerating from the 21% drop recorded in the first four months of this year, official data showed last week.A recent survey by China Real Estate Information, a private research firm, indicated that sales by the country's top 100 real estate developers dropped 59% in May from a year earlier.Authorities have stepped up efforts to revive home sales by lowering mortgage rates and easing rules on home purchases.Meanwhile, more developers are coming up with creative ways to drive sales.Poly Real Estate, one of the country's biggest developers, said it would gift buyers a 100-kilogram pig if they buy a home in its residential project in the city of Lianyungang in eastern Jiangsu province.The company even offered to slaughter the pig for customers.“Buy a house and get a 200 catty 'Peppa' pig.Have a good life at one stop,” read the ad, posted on the company’s WeChat account last week, using the popular British cartoon character to refer to the pig.A “catty” is a traditional Chinese unit of weight and is equivalent to 500 grams.A 200 catty pig is worth about 1,630 yuan ($242), based on the latest government price data.Project homes cost between $184,000 and $260,000, according to Leju's data.Poly Real Estate did not respond to a request for comment.Pork is the essential meat in China, and the country produces and consumes the most pork in the world.This content was originally created in English.Everything about the elections, straight to your email.Receive every Thursday, in the late afternoon.Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit:Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit.

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