Star River Chateau Hotel in Pudong
According to a report from the Shanghai Daily,
THE Star River Group, a developer specializing in luxury residential properties, will introduce discounts of between 15 and 20 percent or even bigger rebates for its two projects in Shanghai, becoming the first luxury housing developer in the city to launch a public price-cutting campaign.To compensate previous buyers, the developer will give about 400 homeowners of Pudong Star River Phase II in Huamu in Pudong New Area and Shanghai Star River Phase I in Zhuanqiao in suburban Minhang District price-matching refund, which may involve more than 600 million yuan (US$94.64 million), Sina.com reported yesterday, citing an exclusive talk held with Liang Shangyan, vice president of Star River.However, such refund will be conditional. For instance, previous buyers should complete their mortgage process at commercial banks by January 31, 2012, in order to be eligible for the refund, according to a report by the website, the country’s largest online portal. Further details about the campaign remained unclear.“Star River’s latest move to join a price-cutting campaign comes as no surprise to me though the majority of its counterparts, developers of both high-end and mass market houses, still prefer to offer discounts in a rather covert way so as to avoid direct conflicts with previous buyers,” said Sky Xue, an analyst at China Real Estate Information Corp.
As far as we can tell, this is the first time that a developer has made public announcements about compensation to recent buyers, so it looks like those protests may be having an impact.
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