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China property crisis: developers in Shanghai offer sweeteners such as deferred down payments, free parking spaces to boost flagging sales
- Special promotions come as China’s home prices fell for a fourth straight month in October while sales remained sluggish
- One housing project in the Baoshan district is allowing some homebuyers to cough up the bulk of their down payment a year after having their offer accepted
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Developers are offering sweeteners such as delayed down payments to home buyers in Shanghai, one of the more resilient property markets in mainland China, in an attempt to spur demand in the face of slumping sales.
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Orient Innerjoy, a housing project in the city’s Baoshan district and close to a subway link, is allowing some homebuyers to cough up the bulk of their down payment a year after having their offer accepted, according to property agent Zhao Hailiang.
The project is being developed by Poly Developments and Holdings, the biggest Chinese home builder by sales, and is scheduled to be delivered by September 2025.
For first-time buyers, the down payment is usually 35 per cent of the price of the property. Poly is now allowing buyers to reserve their new home by paying just 10 per cent of its price, with the remaining balance deferred by up to a year, Xhao said.
In the past, home buyers were normally required to make a full down payment within seven days to two weeks of subscription. It was rare for buyers to negotiate with agents or developers to defer part of the payment by over six months.
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Meanwhile, the second phase of Isle Maison, a project co-developed by Vanke Holdings and China Railway Construction Real Estate, is offering discounts and extending the deadline for down payments, a salesperson for the project said.
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