Debt-trapped Evergrande plans property sales promotion for upcoming May Day holidays
Published: Apr 20, 2022 10:29 PM
Evergrande Group Photo: VCG

Evergrande Group Photo: VCG

 Debt-stricken Chinese developer Evergrande has pledged new home sales promotions for the five-day May Day holidays, a traditional golden week for property sales, with about 2,000 completed apartments to be launched during that time, Phoenix Weekly reported, quoting a staff member of the group.

In order to speed up the resumption of work and production at its branches across the country, Evergrande issued an announcement on Tuesday implementing 10 key marketing measures to boost sales during the golden week.

According to the announcement, the company required all project managers to communicate with local governments actively in order to gain their support to resume sales, including coordinating with banks to resume mortgage business.

It will also step up media publicity, releasing favorable information including resumption of production and delivery of buildings, in order to continuously attract market attention and build customer confidence.

Evergrande said that 95 percent of its real estate projects nationwide have resumed operation, and 55 percent of them are under construction as of March 27.

Chinese consumers' confidence in the domestic property market has been sharply impacted due to Evergrande's debt woes. This year, authorities have implemented a series of measures to relax restrictions on home purchases.

The People's Bank of China (PBC), China's central bank, announced on Monday 23 steps to provide financial services for socioeconomic development and coronavirus prevention and control. Among them, the PBC required local governments to determine a reasonable minimum down payment ratio for commercial personal housing loans, as well as supporting the financing needs of developers in order to promote the stable and healthy development of the real estate market.

From January to March, national real estate investment reached 2.8 trillion yuan ($433.2 billion), an increase of 0.7 percent compared with the same period of 2021. Residential investment totaled 2.1 trillion yuan in the same period, up 0.7 percent, according to data from the National Bureau of Statistics.