September 9, 2008
Hundreds of enraged home buyers in Hangzhou, the capital city of coastal Zhejiang Province, stormed a developer’s office and demanded to have their money refunded after the developer slashed prices, reports today’s Chinese Business View. There were earlier reports on similar incidents in other major cities, including Shanghai and Nanjing.
The developer involved in this particular situation, Vanke, is the biggest player in China’s real estate market. Reportedly, the price per square meter in some apartment buildings dropped from [18,000] yuan to 14,000 yuan within a period of months after the building was put on the market, infuriating buyers who bought early on.
In response, on September 8, Vanke said that “although the company sympathizes with the early buyers for their loss, as a listed company, it is responsible to shareholders and must conduct business in the spirit of the contract.” The newspaper also quoted an expert saying that the home buyers should be aware of the responsibilities and risks involved in their purchase instead of targeting the developer, which did nothing illegal.
China’s real estate market has been a hot topic recently. After the boom years, the market is showing signs of a potential cool-down, for the first time in a decade.
- Chinese Business View (Chinese): Earlier buyers demanded refund from Vanke