Friday, 12 September 2014

Shui On Land leads with 30pc price cuts to woo homebuyers in Chengdu

Shanghai-based developer Shui On Land slashed the price of a residential project in Chengdu by 30 per cent to speed up sales, Chinese media reported on Friday.

1 comment:

Guanyu said...

Shui On Land leads with 30pc price cuts to woo homebuyers in Chengdu

Langi Chiang
12 September 2014

Shanghai-based developer Shui On Land slashed the price of a residential project in Chengdu by 30 per cent to speed up sales, Chinese media reported on Friday.

Chinese developers are expected to deepen price cuts in September and October, traditionally the best-selling season of the year, to reduce inventory amid a worse-than-expected downturn that has lasted almost a year.

During the Mid-Autumn Festival holiday, which fell on September 8 this year, about 20 residential projects in Chengdu, Sichuan province, including those developed by Shimao Property, Evergrande and China Resources Land, cut prices to entice buyers.

Amid the competition, Shui On Land cut the price of its project to an average of 7,600 yuan (HK$9,580) per square metre from 10,656 yuan, the National Business Daily reported.

The developer is facing financial pressure after its net gearing ratio rose to 64 per cent in June from 59 per cent six months earlier. Its first-half earnings fell 24 per cent year on year to 797 million yuan.