Fourth-Tier City Dumps Affordable Housing Onto Market

Developers in Dongkou, Hunan are up in arms as the government dumps affordable housing at prices one-third below the market, killing the market for developer built homes.

湖南公务员福利房超低价入市 房企上书求救

Recently, Hunan local website "Red Net" has posted a cover Dongkou Owen Ltd, etc. 16 fangqi seal the joint letter. The letter said, the county "will include multiple units ready County Financial Bureau, County Revenue, County Prosecutor's Office, Audit Office, courts about 160 acres of vacant land for the construction of welfare housing units, the sales price is only 1500 yuan -1600 yuan square meter, one-third cheaper than the local real estate. "

"The price is much lower than the real estate market news listings will cause the hole county real estate industry is extremely weak, and triggered a panic in housing prices, will lead to the collapse of the full range of real estate Dongkou various development companies will face a collective collapse possible. "The joint letter said.

...An insider at a property firm, Chia, (a pseudonym) told reporters issued an open letter it is quite upset, Dongkou real estate companies "are almost dead."

"The government selling homes is the icing on a disaster cake. Some companies haven't sold a single home in half a month"