Source: CCTV.com

12-17-2008 11:21

Special Report:   House Market under New Policy

As property developers face more cash flow problems at the end of the year, they are launching multiple marketing campaigns to attract potential home-buyers.

"Easily buy your home with only 45,000 yuan as down payment." "Buy one apartment, get another free." "60,000 yuan cash bonus for introducing another buyer." Text messages like these are flooding everyone's mobile phones in cities. Even less developed, in-land cities like Hefei are facing this situation.

Property devloper says in advertisement that a free car is offered if you buy one apartment.

Miss Lin, resident of Hefei, Anhui province said "There are many messages saying that buy one apartment get a car free, or get 50 thousand yuan cash back."

A sluggish property market throughout the whole year has pushed some developers to the edge. Some are giving the biggest discounts ever, and offering a "one yuan deposit" policy. This allows potential buyers to reserve a property for three days with just one yuan. These campaigns have drawn a lot of attention from residents, but few are making real purchases.

Onen Hefei resident said "The properties are still expensive. Buying a property is a huge matter for me, so I am going to wait for a better offer."

In the southern cities of Shenzhen and Guangzhou, home-buyers' interests are boosted by the government's policies. The Chinese government slashed some key housing taxes and fees in the beginning of December.

Now new buyers can enjoy a 30 percent discount on mortgage rates in most residential complexes. Mortgage payers from before the policy can also enjoy lower rates if they ask a housing agency to transfer their mortgage to another bank. Many agencies are offering this service as a new income channel.

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Editor:Xiong Qu