Buy a House, Get a Free BMW! China Developers Are Getting Desperate
- Incentives offered as lending curbs, funding constraints bite
- Developers face $23 billion debt maturity early next year
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Chinese property developers are offering free luxury cars and hefty discounts to lure buyers as lending curbs and funding constraints squeeze their finances.
China Merchants Shekou Industrial Zone Holdings Co. is giving away a BMW Series 3 or X1 to buyers of a three-bedroom unit or townhouse at its Shanghai development. The car, or cash equivalent, equates to about a 10 percent discount on the 3.1 million yuan ($450,000) price of the 89-square-meter apartment.