A collapse in sales of the real estate market in China has recently made some Chinese developers go to extreme lengths to attract buyers, from accepting wheat, watermelon, grain or garlic as down payment to offering incentives such as cars and live hogs.
Apollo News reported on July 7 that a Chinese property developer in Nanshan District of Shenzhen has just launched a new event that allows its customers to swap old houses for brand new ones from its own project.
It consists of two buildings. Building A is a large flat-floor presidential apartment including 68 units with a construction area of about 3,700-5,900 square feet. The average price is nearly $1,390 per square foot with an optional decoration package.
Building B is a single to three-bedroom apartment including 217 units with much smaller area of 377-1,055 square feet. The building’s average price is $1,015 per square foot. Moreover, it is currently available for sale.
According to the report, the company agrees to swap for old residential houses only. Once the customers hand over their houses, the company will handle the rest from finding buyers to paying the rents for customers in case when their houses cannot be sold.
In regard to this sales tactic, some netizens commented, “What kind of person would want to exchange a house for an apartment? Exchanging an apartment for a house, the developer is really smart and can surely make a lot of money out of this”
Ai Zhenqiang, chief researcher of Mingyuan Real Estate Research Institute, told Apollo News that the company has already had five or six sets to be replaced. This means that this type of approach has potential.
He also added that if the project itself is really good, only local tycoons who are looking for living quality will be interested.