While the real estate sector continues to stagnate in China, a developer is trying to entice farmers to buy homes by accepting their crops as the price of the property.
Central China Real Estate Ltd has offered to pay farmers up to 160,000 yuan ($ 24,000) for their grain to offset the house payments in its River Mansion housing project in Shangqiu, a city in Henan Province, according to a post Monday marketing.
Weeks ago, he offered to accept garlic from farmers looking to buy homes for another project in Kaifeng.
The move reflects how far some developers are willing to push themselves to lure cautious homebuyers as the economy slows and the industry suffers from a severe liquidity crisis. Central China, the 37th largest builder in the country, recently sought state support when its parent company agreed to sell a stake to the provincial government.
Central China has offered to buy wheat at 4 yuan per kilogram, higher than the record of 3-3.1 yuan purchased by China State Grain Storage Corporation earlier this month.
Landlocked Henan Province is China’s largest grain-producing region.
Likewise for garlic, central China offered to pay 10 yuan per kilogram last month. This is higher than the wholesale price of 6.92 yuan as of June 10, according to weekly data released by the Ministry of Commerce.
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