Luxury Pudong project ordered to slash prices
Tomson Riviera, the most expensive apartment project on the mainland, has been ordered to lower its selling prices or turn all the units in the luxury Pudong development into lease properties.
The order came from the Shanghai Housing and Land Resources Administration Bureau, according to a report in the Shanghai Securities News.
Hong Kong-listed Tomson Group has been targeted for holding back releases to create an artificial shortage and then listing the flats at Tomson Riviera at artificially high prices, the report said.
The developer is also allegedly under investigation for tax dodging and violating the advertising law by using prohibited words such as 'supreme' in its advertisements.
A company spokesman declined to comment.
Units in the project at Lujiazui, the prime commercial district in Pudong, were offered at 80,000 yuan to 150,000 yuan per square metre at Tomson Riviera's presale launch in October 2005, when prices in the area were about 58,000 yuan per square metre.
So far, only three units in the 220-unit project have been sold for a total of about HK$200 million.