Some developers strongly recommended group-housing purchases, claiming higher
member numbers mean cheaper prices. They even promised a free five-day trip to
Vietnam to help take in potential customers.
Of course, the naked models and other over the top promotions were obviously
stunts designed to lure foolhardy customers.
In fact, the real estate exhibition was indeed prosperous for developers who
were fielded inquiries from a horde of customers all day. Over 5,000 brochures
were sent out to potential investors in just one day.
Developers originally hoped to increase sales by using naked models to attract
customers; but many customers are fed up and disgusted with the overuse of such
cheap tricks.
As supply exceeds demand, the acreage of vacant commercial housing has
increased to 143 million square meters, up 15.7 percent on last year, based on
the fourth quarter statement on monetary policy 2005 issued by the People's
Bank of China.
A model walks around at the housing exposition in
Shanghai |
Nevertheless, it showed down payments for housing following the 2006 exhibition
decreased by up to 20 percent compared with last year.
Insiders say the real estate market should have been regulated by the state but
is now in the hands of developers trying to damage the supply and demand
relationship.
The real estate market hasn't actually experienced the soft landing, economics
insiders added.
Zhang Qunqun, member of Institution of Finance and Trade Economics at the
Chinese Academy of Social Sciences said that local governments ignored the
demands of the people while helping to line the pockets of some developers.
"Fortunately, however, we are not as stupid as the investors expected," an
unnamed gentleman who intended to purchase housing said.
"If the price is right, I will make a purchase even without promotional
offers," he said.
