China Vanke slashes project price by 40 per cent, offers 200,000 yuan to first round of homebuyers for ‘design change’
Company has denied reports it had agreed to pay 1 million yuan each to 100 buyers who bought houses at original prices
China Vanke, the country’s second-largest property developer by sales, on Wednesday said it was offering 200,000 yuan (US$28,800) in compensation to buyers at its Shoukai-Vanke Bailujun Project in Xiamen for “design adjustments”.
The offer comes after Vanke recently lowered the selling prices of the project, which has been on sale since October 2017, by 40 per cent. A 92 square metre fully furnished house with a car park was being sold for 5 million yuan. Last month, the company started offering unfurnished houses without parking for 2.8 million yuan.
Vanke has denied social and mainstream media reports that it had agreed to pay 1 million yuan each to the more than 100 buyers who bought the houses at their original prices, and said the compensation it was offering was for a change in design.
The company said it had decided to change the design in relation to hot water springs at the project and would offer remedies to the affected buyers.
“The hot spring to home design cannot meet users’ needs after further studies, and we have decided to take out that part from the original plan at this project. We apologise for it and have offered two compensation plans to affected buyers,” the company said in a statement.
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The affected buyers who accept the change will get the 200,000 yuan as compensation, and those who decline the new design can terminate their sales contracts and Vanke will refund them their money.