Suddenly Shanghai Developers Are Forfeiting Land Back To The Government



Interesting anecdote from People’s Daily:Sentiment is dampening among property developers. Two parcels of land in Shanghai were bought at prices more than four times their asking prices. But now the developers have decided to give them back to the government instead. It will cost them millions of yuan in deposits.

Industry insiders say it’s due to the cooling housing market, thanks to the government’s curbing measures. Since property prices aren’t expected to rise any further, developers are expecting to lose money if they go ahead with construction.

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