'Tough love' policies cool passion for property

By Wang Ying (China Daily) Updated: 2011-12-21 07:55

Analysts said those figures bode ill for the year-end, when sales are typically slow. And sales gimmicks aren't as effective as price reductions.

"To be honest, using the fighter jet or a high-end sedan as a gift is not the best choice, because such a gift is not what homebuyers really want, and it will increase the total cost of owning the property" because of maintenance, said Song Huiyong, a research director with Shanghai Centaline Property Consultants.

Joe Zhou, local research director for Jones Lang LaSalle real estate consultancy, said, "At the moment, quality and price are the deciding factors. And only by offering a reasonable price and an attractive discount can property projects receive better sales."

Big sale, big reaction

Figures from China Real Estate Info Corp show that four property projects in Shanghai raked in 101 billion yuan after offering sizable discounts. Earlier buyers who had paid higher prices stormed their sales offices, demanding refunds from the developers - unintentionally helping to market these on-sale properties.

"It's just so obvious that those people feel it's unfair because they had paid more than other buyers," Lin Jianjun, 40, said as he checked out one of the big sale projects, hoping to buy one in Songjiang district. "After all, they were just hoping to get some compensation from the developer."

Chen Weiming, 27, said the heated scenes reminded him of late 2004 and 2005, when drawings were held to determine who could get a purchase contract for a home. Chen, who had lined up with others wanting to buy an apartment, said, "Almost all the buyers in the queue agreed that the price was really attractive. The property sales office is more like a popular pavilion during the Shanghai World Expo."

The fury of earlier homebuyers and the eagerness of those seeking a good bargain reflect the significance of a home in China, experts said. A rise or decline in the housing price can whip up Chinese people's sentiment.

"I have earned myself 50,000 yuan this week," property agent Wang Chenyun said. "I just bought a new home in Huangpu district for my parents and a new car for myself."

Wang said that lately, he has been selling two apartments a week, and each sale earns him about 6,500 yuan in commission.