A Guangzhou-based housing developer has begun offering a 15- percent discount on its 40 property projects across the country amid a government clampdown to cool the red-hot sector.
Evergrande Real Estate Group made the announcement on its Web site Thursday.
Analysts said that Evergrande might become the first domino that triggers a nationwide decline in property prices.
According to a survey conducted during the May Day holidays by the Shanghai Securities News found no apparent signs of price drop at more than 100 property developments by China s 10 major real estate companies.
However, an industry insider said Evergrande s move to cut prices will have implications on property price trends in at least 20 cities where the company has projects on sale.
By cutting prices, Evergrande aims to grab more market shares in a short period of time against the backdrop of the government s efforts to damp property prices, the News reported Thursday.
The company also wants to accumulate capital for potential mergers and acquisitions in the new round of industry reshuffles resulting from cooling measures such as credit tightening, the paper said.
China s real estate kept a good record in sales in April, but remained hungry for cash, the report said.
Evergrande said April 2 that its sales jumped 175 percent in the first quarter over the same period of last year to 8.53 billion yuan (USD1.25 billion).
Evergrande Real Estate Group made the announcement on its Web site Thursday.
Analysts said that Evergrande might become the first domino that triggers a nationwide decline in property prices.
According to a survey conducted during the May Day holidays by the Shanghai Securities News found no apparent signs of price drop at more than 100 property developments by China s 10 major real estate companies.
However, an industry insider said Evergrande s move to cut prices will have implications on property price trends in at least 20 cities where the company has projects on sale.
By cutting prices, Evergrande aims to grab more market shares in a short period of time against the backdrop of the government s efforts to damp property prices, the News reported Thursday.
The company also wants to accumulate capital for potential mergers and acquisitions in the new round of industry reshuffles resulting from cooling measures such as credit tightening, the paper said.
China s real estate kept a good record in sales in April, but remained hungry for cash, the report said.
Evergrande said April 2 that its sales jumped 175 percent in the first quarter over the same period of last year to 8.53 billion yuan (USD1.25 billion).
