China’s real estate market is so sluggish that cities offer discounts on group purchases or let civil servants sell apartments.

People look at a model of real estate at the Country Garden showroom in Yichang, Hubei province, China, 25 August 2019.

China’s once-hot real estate market has slowed significantly.Liu Junfeng/VCG/Getty Images

  • To boost sales, some Chinese cities are taking unusual measures.

  • This includes arranging for residents to purchase properties as a group for discounts.

  • A small city in eastern China is asking officials to sell properties to family and friends.

China’s property market is in trouble, with homebuyers refusing to pay mortgages and July home sales down 40% from a year ago.

The development follows Beijing’s crackdown on excessive borrowing in 2020, leading to Evergrande’s debt crisis last year, which has since spilled over to other developers. The funding shortfall has led to project stalling and a significant drop in purchasing sentiment amid economic headwinds from ongoing pandemic restrictions.

To boost sales, some Chinese cities have come up with unusual methods, such as arranging for residents to buy properties together as a group, the government-backed The Paper reported in July. The practice continues today, according to an insider who examined local news media reports.

According to The Paper, such group purchases are mostly in small cities with lots of ready-to-use housing. At the time, the Huanggang city in central Hubei province was offering at least a 3% discount to groups of 20 or more buyers to her, according to news outlets.

Meanwhile, a video of a Chinese Communist Party official urging people to buy more apartments in southern China’s Hunan province has gone viral. “Buy one, buy two; buy two, buy three; buy three, buy four,” said Deng Bibo, party secretary in Hunan province, China. Estate Fair on Tuesday. In his speech, Deng addressed party cadres and leaders.

China’s leadership appears to be trying to boost the country’s property market as some officials in the small eastern Chinese city of Sixiang are tasked with selling properties to family and friends, Reuters said Wednesday. Citing financial news from Yicai. Exit.

“Public officials should mobilize their friends and relatives to take practical action to buy a house,” the Sixia government reportedly told officials.

The move comes as Chinese developers and authorities are doing whatever it takes to boost sales in a struggling market. Recently, some desperate developers have even accepted crops such as wheat and garlic as down payments for rural real estate.

Read the original article on Business Insider

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