It may be hard to wrap ones head around, but real estate is tanking in China, and the potential for a cash or even credit crunch is moving beyond worry, to actuality. China Evergrande is stuck with loads of inventory, and loads of bills.
Developers are grappling with a cash-flow crisis and mounting debts as the viral outbreak threatens to derail China’s vital property market.
China Evergrande said it is the biggest ever nationwide discounts campaign.
One of China’s largest developers will slash the prices of all its new flats by a quarter in what it says is the biggest ever nationwide price cut, as the coronavirus outbreak threatens to derail China’s all-important housing market.
China Evergrande, the country’s third biggest builder by value, said it will kick off a one-and-a-half-month campaign offering discounts of up to 25 per cent at all of its projects across the country.
The company, chaired by China’s third-richest person, Xu Jiayin, said in a statement that “to cope with the changes of the new period, Evergrande will offer special big discounts at all of our projects, starting from February 18.”