▲ 187 ▼ To circumvent local government's restriction on sharp price drop, Chinese real estates developers literally handed out gold ingots to home buyers. (lemmy.nz) submitted 2 years ago by throws_lemy@lemmy.nz to c/damnthatsinteresting@lemmy.ml 28 comments fedilink hide all child comments Context : https://www.theguardian.com/world/2023/jun/12/gold-bars-used-to-lure-chinese-homebuyers-amid-market-slowdown
[–] Smoked_Brie@lemmy.blahaj.zone 18 points 2 years ago (2 children) I’m fucking dumb. What does this mean? permalink fedilink source hideshow 4 child comments replies: [–] LoamImprovement@beehaw.org 34 points 2 years ago (1 child) This means that real estate developers are saying "I can't sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K" to get around the overvaluing of the house, because people won't buy the house at the prices Chinese government insists they should be sold. permalink fedilink source parent hideshow 2 child comments replies: [–] Smoked_Brie@lemmy.blahaj.zone 4 points 2 years ago Oh my… what a shit show. Thanks for explaining friend. permalink fedilink source parent [–] Pregnenolone@lemmy.world 25 points 2 years ago (1 child) Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars. House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price. permalink fedilink source parent hideshow 2 child comments replies: [–] Smoked_Brie@lemmy.blahaj.zone 2 points 2 years ago Wild. Can’t quite wrap my brain around how fucked this is. permalink fedilink source parent
[–] LoamImprovement@beehaw.org 34 points 2 years ago (1 child) This means that real estate developers are saying "I can't sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K" to get around the overvaluing of the house, because people won't buy the house at the prices Chinese government insists they should be sold. permalink fedilink source parent hideshow 2 child comments replies: [–] Smoked_Brie@lemmy.blahaj.zone 4 points 2 years ago Oh my… what a shit show. Thanks for explaining friend. permalink fedilink source parent
[–] Smoked_Brie@lemmy.blahaj.zone 4 points 2 years ago Oh my… what a shit show. Thanks for explaining friend. permalink fedilink source parent
[–] Pregnenolone@lemmy.world 25 points 2 years ago (1 child) Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars. House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price. permalink fedilink source parent hideshow 2 child comments replies: [–] Smoked_Brie@lemmy.blahaj.zone 2 points 2 years ago Wild. Can’t quite wrap my brain around how fucked this is. permalink fedilink source parent
[–] Smoked_Brie@lemmy.blahaj.zone 2 points 2 years ago Wild. Can’t quite wrap my brain around how fucked this is. permalink fedilink source parent