• @[email protected]
      link
      fedilink
      3410 months ago

      This means that real estate developers are saying “I can’t sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K” to get around the overvaluing of the house, because people won’t buy the house at the prices Chinese government insists they should be sold.

    • @[email protected]
      link
      fedilink
      English
      2510 months ago

      Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars.

      House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price.

  • CommieCretzl [he/him]
    link
    fedilink
    English
    810 months ago

    Where in this article does it say anything about local government restrictions? It says that this is a single housing firm doing this as a marketing stunt.

    • @[email protected]
      link
      fedilink
      1810 months ago

      Read past the first paragraph:

      Part of the reason that property developers are struggling to shift stock is that several cities, in an effort to stabilise the market, have banned developers from cutting prices.

    • @[email protected]
      link
      fedilink
      -110 months ago

      It’s usual for the western social media to point out anecdotal occurings and then project it on entire country as normality.