Having gone from the sublime (zero-money-down mortgages for Chinese homes) to the ridiculous (when China’s largest property developer says “the period in which everybody makes money out of property is gone,”) the latest desperate act of a dying Chinese property bubble is stunning. As WSJ reports, Season Joy City (a remote suburb of Beijing) offers not only a party bag of bonuses to lure potential buyers; but the development’s big selling point is “buy one floor, get one free.” The government’s reluctance to bail the nation out may soon be tested as Barclays notes “this downturn is more serious than in 2008.”
zero-money-down mortgages for Chinese homes
But the biggest draw is a “zero down payment†scheme, available for a two-and-a-half-week period only. At first sight this seems to go against government regulations, brought in to keep house prices under control, which stipulate a minimum 30% down payment on ordinary residential purchases.
Zero down payment schemes have popped up around China as developers go to ever greater lengths to shift apartments, but Season Joy City may have the distinction of being the first to try it in Beijing, said Tang Li, an analyst at North Square Blue Oak, an investment bank.
“They will help homebuyers to apply for this consumer loan that they can use as a down payment,†said Mr. Tang. “It’s very difficult to judge whether this is in line with the regulations or not. So far there’s been no punishment from the government.â€
And then there is the really desperate…
Season Joy City offers a party bag of bonuses to lure potential buyers. The development’s original selling point was “buy one floor, get one free.â€
When China Real Time visited last week, helpful sales assistants also offered to throw in kitchen fittings and four air conditioning units for nothing.
