Evergrande Group, China’s second-largest property developer, has recently launched a nationwide large-scale promotion, by offering a 26% discount on its residential housing in the name of the incoming Golden Week holiday, The Paper reported.
According to the promotion policy, if all the purchase discounts are used together, the final discount on a residential property could reach 26%.
In addition, buyers for office space can enjoy an extra 30% to 40% discount on the basis of a 10% to 20% discount, which means its business properties are selling at nearly half the original price.
In the current context of financial de-leveraging, capital-intensive property developers need to generate more cash in order to cope with the pressure of repayment of loans.
Many developers have repeatedly stressed internally that current project should be sold as soon as possible, speeding up the company’s cash return.
According to the semi-annual report of the company in 2018, Evergrande currently has a total of 735 projects nationwide covering 216 cities.