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Tasty discounts: China property firms accept watermelon, garlic, peaches as partial payment for new homes amid housing slump

  • Restricted from cutting prices in a slumping market, creative developers have started accepting bulk produce to offset part of the price of a new home
  • In one case a developer offered US$14,921 off a home price in exchange for 5,000kg of watermelons – at least five times the market rate

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A man carrying a watermelon walks along a path in Beijing on June 21, 2022. Photo: AFP
Watermelons, wheat, peaches and garlic have recently become a form of currency to partially offset the price of a new home under creative promotions cooked up by property developers in parts of China, which are feeling the pinch between a weak market and restrictions against reducing prices.
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Amid a months-long slump and with local governments not allowing large price cuts, a developer in Nanjing in June invited buyers to sell it up to 5,000kg of watermelons to offset 100,000 yuan (US$14,921) of the price of a new flat. A developer in Henan province accepted about 430,000kg of garlic from buyers over 16 days in late May and early June, helping it sell 30 homes. In Wuxi, in Jiangsu province, homebuyers could provide peaches to offset up to 188,888 yuan per unit.

“Local governments do not allow price cuts at will, so developers can only sneakily find ways to cut prices,” said Zhang Dawei, chief analyst at Centaline Property Agency.

Nanjing’s Seazen Holdings launched the watermelon scheme, which was meant to run from June 28 to July 15, according to a graphic circulated online. The housing price there is about 18,800 yuan per square meter, translating to around 1.5 million to 2.3 million yuan per housing unit.

Seazen Holdings brochure promoting its scheme accepting watermelon in exchange for a lower price on new homes. Image: Handout
Seazen Holdings brochure promoting its scheme accepting watermelon in exchange for a lower price on new homes. Image: Handout

The wholesale price of a kilogram of watermelon in Nanjing is between 2 yuan and 4 yuan, according to trade data platform Xiggua. By offering to pay 20 yuan per kilogram (100,000 yuan for 5,000kg), the developer was effectively paying at least five times the market rate for the juicy fruits.

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