Some Chinese developers are scrapping discounts after sales rebound during ‘golden week’

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State-backed China Resources Land said it would withdraw the 2 per cent discounts for all its residential projects in Beijing

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Taxis in Shenzhen near the border with Hong Kong. Photo: Bloomberg

Yulu Ao

Published: 8:00am, 10 Oct 2024Updated: 6:07pm, 11 Oct 2024

Chinese developers cancelled discounts as sales rebounded during the “golden week” holiday, underscoring signs of improved sentiment in the market, as officials called for stability in housing prices.

Midea Real Estate Holding raised prices by 2 per cent for its housing projects nationwide, starting from Tuesday, according to an official newspaper overseen by the Ministry of Housing and Urban-Rural Development.

On the same day, state-backed builder China Resources Land said it would withdraw the 2 per cent discounts for all its residential projects in Beijing, while China Construction Yipin Investment Development also pulled its 2 per cent discounts from at least five projects, the report said.

In the southern Chinese tech hub of Shenzhen, Golden Real Estate cancelled a 1 per cent discount for a property in the city’s Nanshan district soon after the end of the holiday, according to the project’s sales manager.

This project once offered gifts like gold bullion worth 500,000 yuan (US$71,000), or discounts of around 5,000 yuan per square metre, to attract buyers. It sold around 200 units during the week-long holiday, pulling in about 3 billion yuan in total.

According to Centaline Property Agency, one of the largest real estate agents in Shenzhen, two other developers are looking at raising selling prices for several projects in the city.