Crackdown on Illegal Housing Practices Could Cut Developer Profit in Half

Some real estate developers invented various fees and charges for home buyers that may have doubled profits. With the government now cracking down on housing violations, these developers could see their profits halved.

Recently, a series of media exposure of some of the alleged violations charged "buy rate", "electricity supplier charges" and other real estate funds.

According to the "Daily Economic News" reporter investigation, these additional fees for developers can save 3% to 5% of the marketing costs, but additional costs of such a violation is canceled, the developer or sales profits will shrink.
One example:
Housing prices listed in a Property located in Shanghai Sijing example. The real estate unit price of 40,000 yuan / square meter (decoration), 8% of the net profit margin is calculated, priced at 3200 yuan net profit. It broke the news to the media buyers, the real estate on the basis of first Fuwu Cheng additional 400,000 yuam renovation costs. According to a rough calculation of 100 square meters of housing, the developer sold a suite per square meter can be overcharged 4,000 yuan, deduct 10% tax per square meter can be little more 3600 yuan. Profit from the unit price visible, surcharges a close, the project profit nearly doubled.
iFeng: 房价真相:去了“苛捐杂费” 楼盘利润腰斩!

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