Gold bars used to lure Chinese homebuyers amid market slowdown

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Property developers struggle to rebuild confidence in housing market after three years of economic pain

Gold bars, new cars and mobile phones are among the incentives being offered to potential homebuyers by Chinese property developers as they grow increasingly desperate to boost sales.

According to local media reports, the amount of gold ranges from 700g of gold for an 89 sq metre flat, to just over 1kg for a 100 sq metre apartment. Property prices in the development range from 2.2m yuan to 2.5m yuan. Another developer in the city has launched a similar promotion, offering free decoration services, parking spaces, up to five mobile phones and a 10-year stay on management fees to prospective buyers.

After signs of a moderate recovery earlier in the year, property has slumped. In a survey of 40 cities by China Index Holdings, an independent real estate company, new home sales during the five-day Labour Day holiday in May were 22% below their pre-pandemic average. In third- and fourth-tier cities, sales were down by 42%.

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