Market slump: Chinese homebuilders take agri-produce as payment

Beijing: Developers in China are now taking agricultural produce such as watermelons, peaches etc., as payment for homes to attract buyers after the property market slumped in the country, Agence France-Presse reported, citing state media.

The property market got hit by the double impact of the slowing economy, as well as the Chinese government banning builders from taking deposits before beginning construction.

A developer from the Chinese city of Nanjing told China News Weekly that it would accept truckloads of watermelon worth as much as 1,00,000 Yuan as a downpayment from local farmers. In the town of Wuxi, another developer decided to take peaches as the payment, the journal reported.

Meanwhile, in the major garlic production region, Qui county in the central Chinese province of Henan, farmers who wish to buy properties could exchange their produce at three times the market price to settle their down payment.

Developers are now free to offer steeper discounts on homes than permitted by the government as payments are in crops at inflated prices.

Central China Management, a homebuilder, said on social media in late May that during the new garlic season, the company had decided to benefit garlic farmers in Qui county. The company is helping farmers "with love and making it easier for them to buy homes," AFP quoted. Also, nearly 30 properties were sold after the garlic campaign started, the company added.

According to official data, home sales in the country fell for 11 successive months and were 31.5 per cent down in May, against the same the year before.