Homeowners in Shanghai ravage developers’ offices amid falling housing prices

October 25, 2011Jing Gao8 Comments, , , , , , , , ,

From Afinance, Sohu

One man’s meat is another man’s poison. After years of skyrocketing housing prices, which spells financial straits for potential home buyers, China’s real estate market finally shows some signs of a soft landing. In Shanghai, home prices fell as much as 30 percent in the suburban. While most potential home buyers are cheering over the falling prices, those who have already plunked down money took the news differently and started to panic.

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On Saturday, about 300 home owners stormed the sales office of a property project in the Jia ding district, protesting the sudden price cuts that has made a large share of their home values evaporate, and shouting for an immediate refund, as the average price of the project dropped from 18,500 yuan/sqm ($270/sqft) to 14,000 yuan/sqm ($205/sqft). Despite riot police arriving at the scene, the angry mob smashed the sales office.

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“…Defend our rights!” “…Disregards homeowners’ interests.” “Boycott unscrupulous developers!!” The signs read. 

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“Greenland (developer’s name), do you still have moral blood flowing in your vein?”, a reference to Chinese Premier Wen Jiabao’s call on entrepreneurs to have social responsibilities early this year.

Two more property developers, whose projects’ prices were respectively down 6,000 yuan from 23,000 and 8,000 yuan from 19,000 per square meter, also enraged their buyers, and were besieged by protesters.

“This is fraud, you know! It is sheer fraud!” Over a hundred home buyers surrounded the reporter from Shanghai Youth Daily. “The baby hasn’t been born yet, and 400 grand is already lost. This money was made by my parents with blood and sweat throughout their entire lives. Now you tell me what I, as their child, can do, what they can do!” A home buyer raved.

However, most Chinese netizens are not sympathetic with the protesters, as they believe instead of people really in dire need of a home, most of them are speculators, who bet on and benefited from higher prices, caused the property market to overheat, and therefore deserve a good lesson like this.

Selected comments from Sina Weibo

多姐最摆:Why do they kick up a fuss? With investment always comes risks. What sore losers!

小小绿豆芽: Look, they did not say a word when it was raising, and kicked up a fuss when it fell. What kind of mentality is that!

老柏姓:They bought their homes on impulse and smashed the offices on impulse. When can they stop being so impulsive? Trading itself is a type of contract. One party is willing to buy and the other is willing to sell. Which party does the law support? No need to ask. The seller cut the price by 6,000 yuan, and they ended up paying 500,000 more, then they cannot not accept it? I truly wish these impulsive people could act on impulse when the housing prices increase by 6,000, by donating the premium and saying, ‘I cannot accept that. It’s rising too fast…’

OU弟:Don’t you think it is ridiculous? Think about what the spirit of contract is…A bunch of nitwits.

-游来游去-:You guys make trouble and demand a refund from the developers when the home prices are falling, so does that mean developers can ask you for money when the home prices are rising? This is a market, not determined by the developers alone.

欣欣_xinxinxinxin:Look, what kind of homeowners are these? They are wronged if they bought the homes to live themselves. They deserve it if they speculate on the property bubble!

飞雪袭城:If the demand is inelastic/rigid, what you need is a home, not the money the home is worth. You should’ve been aware that it was the price that you could afford when you bought the home. If you could not, why did you buy it? The so-called demand which exceeds one’s spending power is one of the culprits that have driven up the home prices. Those businessmen are indeed despicable, but they are at least legal. If you fight with illegal methods, what can you depend on to beat those despicable businessmen?

Narcissus0926:Those who thought home-buying guarantees profit crashed! They enjoy winning but are reluctant to admit defeat. They took it on easily but cannot let it go! Haha!

微笑罂粟花的小窝:Those who can afford homes at such steep prices are never ordinary people. They must have some capital. Ordinary people are all watching closely and waiting.

猪的华尔兹:Nice price falls. The bubble is too big and will sooner or later burst. It’s lucky that here in my town it is only 4,000 per square meter. [哈哈][哈哈][哈哈][哈哈] Those who speculate on property deserve to have a real taste of getting stuck.

智于:Haha! Who asked you to speculate on that!

搞搞村阿白:For those who have involved their entire families into the purchase, how can they accept a loss of several hundred thousand yuan overnight? There must be some conspiracy behind the rapid price fall.

正宗小老头子:If they (home prices) fall, their money made with blood and sweat will be lost. If they don’t fall, money of hundreds of thousands made with blood and sweat will be lost.

Frances大小姐:Why is there a fuss over this? A purchase is made with consensus. Will you storm the department store and fight if the garment you bought one day is on sale the next day?

蜀啊飞:Ordinary people is looking forward to price falls, especially those who cannot afford to buy a home. You could afford one at a time when it was so expensive, and you cannot accept it when it is cheaper? Market fluctuations are so normal.

花木交易中国:The ills of the nation’s ethos are fully exposed. Haha.

Show_Me_the_Light:Neither is more morally correct than the other. However, one is more shameless than the other. It now appears that the speculators are more shameless than the developers. The property market has risks; a purchases should be made with caution. Didn’t you know?

 

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“Refund! Refund! Absolutely a refund.”

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Sales office of a property developer was smashed by angry homeowners over falling prices.

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8 comments to “Homeowners in Shanghai ravage developers’ offices amid falling housing prices”

  1. [...] En rad Bilder från incidenterna kan ses här. [...]

  2. Augis | October 25, 2011 | Permalink Reply

    I hope that China will succeed to implement the soft landing.
    If the landing is hard – everybody’s butt will hurt…

  3. Visitor | October 25, 2011 | Permalink Reply

    How damn stupid can you people be. For several years people have spoken about the potential demise of the real estate market and, people still bought in. Hang on to your properties for another year and you will lose even more. To the morons that want a refund, haha.

    I have absolutely no sympathy for any of you.

  4. Popp | October 25, 2011 | Permalink Reply

    Just wow. You have to be hilariously ignorant to believe real estate is a sound investment in 2011.

    These investors aren’t just out-of-control animals, they’re stupid too.

  5. [...] homeowners went apeshit on some housing complex mockups, due to their investments being threatened by a fall in housing [...]

  6. LinuxWolf | October 26, 2011 | Permalink Reply

    It’s not stupidness of the house-owner it is arrogant to belief the house-prises will rise into the sky and furthermore into the outer space.
    If I see what I can get for the money (what some chinese people spend for a shelf in a 26 floor high building made of concrete and in poor quality) in Europe or America or somewhere else outside of China I can only shake my head how arrogant and blind mustbe these people to belief these prises will rise endless.

    LinuxWolf

  7. [...] China’s skill market, a cornerstone of a economy, is also negligence faster than expected. National genuine estate prices declined for a third uninterrupted month in November. Developers have slashed prices in some locations, triggering isolated protests by existent homeowners. [...]

  8. [...] China’s property market, a cornerstone of the economy, is also slowing faster than expected. National real estate prices declined for the third consecutive month in November. Developers have slashed prices in some locations, triggering isolated protests by existing homeowners. [...]

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