A few homeowners in Shanghai protested outside the sales offices of China Overseas Property Group Co over the weekend, following the developer’s move to cut its property prices after units were purchased, according to the Shanghai Daily.
With prices of units at a project in Pudong reduced from 22,000 (S$4,365) yuan psm to 16,000 yuan psm (S$3,183), home buyers clamoured for cancellations or refunds of their purchases.
“We are communicating with the relative government departments over the activities by the homeowners over the weekend,” said Tang Minzhi, a Hong Kong-based spokeswoman for China Overseas Land.
She did not provide details pertaining to the price cuts and declined to elaborate on the issue, noting that prices fluctuate daily and are monitored every quarter.
The protest took place less than a week after home prices rose in some of the 70 cities monitored by the government. According to the statistics bureau, home prices in Beijing and Shanghai remained unchanged from August, while 16 other cities recorded month-on-month declines.
“Developers are facing a cold winter and most of them are under cash pressure as the government tightens lending,” said Zhao Duo, a property analyst at Sealand Securities Co.
“To attract buyers and boost sales, they must lower home prices further.”
Meanwhile, Premier Wen Jiabao announced over the weekend that the real estate market is at a “critical” period.
He added that the country should continue its efforts to curb high housing prices to ease inflation and maintain social stability and economic development.
To contact the journalist, you may send your message to editor@propertyguru.com.sg