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Angry homebuyers surround a developer's car

Daqing Evening News, April 13, 2010

Today's Daqing Evening News presents more evidence of the skyrocketing housing prices that have caused so much angst in Chinese cities:

Housing Price Madness: 4,000 RMB Jump In a Single Day

Overnight Price Hike at one Beijing Development Enrages A Thousand Buyers

On April 11, a dispute involving more than a thousand people was sparked when two apartment buildings opened for sale in Beijing. The night before, prospective homebuyers were informed that the two buildings would be priced at an average of 20,000 RMB and 24,000 RMB per square meter respectively, but when the sale opened, the 20,000 RMB building had become 24,000, and the 24,000 RMB building had increased to 28,000. Faced with this sudden price hike, the enraged buyers surrounded the developer's car with him inside.

There are currently 3 Comments for Angry homebuyers surround a developer's car.

Comments on Angry homebuyers surround a developer's car

that's the free market at work. he owns the buildings so he can charge whatever amount he likes. if no one buys the units he will be forced to drop his price. if he sells all the units at the new higher price he knows that his first price was too low.
he probably saw how many people had turned up for the sale of the units and that is what made him try and raise the price. the developer is greedy and it is nasty to get peoples hopes up, but this is how the free market works, Chinese people need to make sure that China introduces laws that avoid this type of behaviour as they go along the capitalist road.
in the uk we can have a situation where units are advertised for say GBP100,000 and a company/person will go and see the developer/owner before the sale starts and buy the whole lot in one deal. this company then sells on each unit at a profit. nasty but legal in the uk (and most of the rest of the 'west' as far as i know)
good luck

"that's the free market at work"
Sorry but I am pretty sure that China is still a Communist dictatorship. By any measure they won the Communist/Capitalist "Cold War". Don't ever forget that.

Before the housing bubble bidding war happens all the time in US. Often full price offer would be rejected becaise someone offered over the asking price.

You can pay more, or don't buy it. Isn't it the same thing in China? No way does this justify anger or violence towards the developer. Market is hot you get gouged, so?

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