this post was submitted on 25 Aug 2023
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Damn, that's interesting!

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To circumvent local government's restriction on sharp price drop, Chinese real estates developers literally handed out gold ingots to home buyers. (lemmy.nz)
submitted 1 year ago by throws_lemy@lemmy.nz to c/damnthatsinteresting@lemmy.ml
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Context :

https://www.theguardian.com/world/2023/jun/12/gold-bars-used-to-lure-chinese-homebuyers-amid-market-slowdown

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[–] Smoked_Brie@lemmy.blahaj.zone 0 points 1 year ago (2 children)

I’m fucking dumb. What does this mean?

[–] LoamImprovement@beehaw.org 1 points 1 year ago (1 children)

This means that real estate developers are saying "I can't sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K" to get around the overvaluing of the house, because people won't buy the house at the prices Chinese government insists they should be sold.

[–] Smoked_Brie@lemmy.blahaj.zone 1 points 1 year ago

Oh my… what a shit show. Thanks for explaining friend.

[–] Pregnenolone@lemmy.world 1 points 1 year ago

Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars.

House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price.