As China’s housing market has been hit by a slowing economy and debt crisis, the property dealers have come up with what is called an “innovative” as well as “lucrative” offer for the Chinese farmers who could not afford to pay advances for their home.
In order to make a win-win situation for both property dealers as well as farmers, the former has started taking their agricultural produce as payments for homes. Some business tycoons have even started taking watermelons and garlic in exchange for their “dream home”.
According to a report by China News Weekly, the developers are taking watermelons, peaches and other agricultural produce as an advance payment as the Chinese government has banned builders from taking deposits before construction begins on a project. As per the state media, it is an attempt to lure buyers deterred by a property market slump. According to official data, home sales in China measured by floor area have slid for 11 consecutive months due to a range of reasons– from COVID-19 to the debt crisis materialised by the low sales. The data claims the property investment slumped more than 31% in May as compared to the same month last year.
Therefore, the report said that the property dealers are now seeking attention from the lower-middle class by offering “lucrative” as well as “feasible” offers to the farmers. One of the property dealers told the China News Weekly that he would accept truckloads of watermelons worth up to 1,00,000 yuan as a downpayment from local farmers, while the other developer from Wuxi said he has started taking peaches as payment.
Besides, some developers who went to the Qi region– a major garlic-producing region– said they have been approaching the farmers with offers of affordable home buying. Even, they set the prices of their produce nearly three times as compared to the market price. They told the state-run magazine that the initiative was taken so that the farmers can settle their downpayment.
While speaking to a social media platform in May this year, homebuilder Central China Management said they were approaching the farmers as per their agricultural produce. According to the management, it has started taking agricultural produce in order to benefit garlic farmers in Qi county.
