China Vanke Co Ltd, the country's largest publicly listed real estate developer, is planning to launch big sales promotions in Shanghai on Thursday, the company said.
The Shenzhen-based company, China's biggest residential property developer, will offer discounts of as much as five percent to local home buyers on Thursday, the Lantern Festival, following similar promotions in other Chinese cities, including Guangzhou and Shenzhen.
Buyers who sign home purchase agreements with the company on that day can gain the largest discounts Vanke has offered in Shanghai since 2007, industry people said.
About 10 Vanke projects on sale - including residential and commercial properties - will be open for the promotions, the company said.
The company said it would likely offer the discounts annually in the future to reward clients, according to media reports.
Vanke is among the first developers to launch sales offers after China's real-estate market cooled in response to the central government tightening lending.
For example, in January, a Vanke residential project in Chengdu, Sichuan Province, was sold at between 4,500 yuan (US$626) and 4,600 yuan per square meter, much lower than the asking price of more than 6,000 yuan two months earlier in the same area.
Wang Shi, chairman of Vanke, said that price cuts were the company's response to a changing market.
As the country's leading residential property developer, Vanke's price cuts may trigger similar approaches by other developers, industry analysts said. "It is often the case that price cut promotions launched by one developer, especially big companies, in one area will probably be followed by its counterparts due to intensive competition among real estate companies," said Fan Weiguo, deputy general manager with Shanghai Hanyu Property Agency Ltd. "That is the so-called chain reaction scenario frequently seen in the real estate industry."
In Guangzhou, for instance, China Merchants Property Development Co and Gemdale Group, two major real estate developers in the country, have already launched similar promotions following Vanke.
Statistics show that sales of new homes dropped for the fourth consecutive month in January in Shanghai as more buyers are taking a wait-and-see attitude after the government stepped in to tackle soaring home prices.
http://www.shanghaidaily.com/sp/article/2008/200802/20080218/article_349027.htm
Shanghai Real Estate market
Shanghai (Chinese: 上海; Pinyin: Shànghǎi; Shanghainese: /zɑ̃'he/; abbreviation: 沪; nickname: 申), situated on the banks of the Yangtze River Delta in East China, is the largest city of the People's Republic of China and the eighth largest in the world.[4] Widely regarded as the citadel of China's modern economy, the city also serves as one of the nation's most important cultural, commercial, financial, industrial and communications centers. Administratively, Shanghai is a municipality of the People's Republic of China that has province-level status. Shanghai is also one of the world's busiest ports, and became the largest cargo port in the world in 2005.
Originally a fishing town, Shanghai became China's most important city by the twentieth century and was the center of popular culture, intellectual discourse and political intrigue during the Republic of China era. After the communist takeover in 1949, Shanghai languished due to heavy central government taxation and cessation of foreign investment, and had many of its supposedly "bourgeois" elements purged. Following the central government's authorization of market-economic redevelopment of Shanghai in 1992, Shanghai has now surpassed early-starters Shenzhen and Guangzhou, and has since led China's economic growth. Some challenges remain for Shanghai at the beginning of the 21st century, as the city struggles to cope with increased worker migration, a huge wealth gap, and environmental degradation. Despite these challenges, Shanghai's skyscrapers and modern lifestyle are often seen as representing China's recent economic development.
Saturday, February 23, 2008
Vanke offers festival house discounts of 5%
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