Desperate developers in China are accepting wheat and garlic as down payments for rural properties to boost sales.
Property sales in China are expected to have dropped by 25% in the first six months of the year as a result of China's zero- Covid strategy.
China's citizens are shying away from real-estate investments because of the uncertain economic climate, according to a report.
CNN reported that Central China Real Estate is offering a swap wheat for house promotion in order to increase sales. Buyers can pay up to 160,000 yuan, or $23,900, of their down payment with wheat if they choose to. Houses in the development can be had for between $600,000 and 900,000 dollars.
An agent from Central China Real Estate said that the promotion would end on July 10.
The company has launched marketing campaigns in the past. The company accepted garlic as payment at the beginning of China's garlic season in May, according to the development's official Wechat account.
On the occasion of the new garlic season, the company made a decision to benefit garlic farmers in the area. Making it easier for farmers to buy homes is one of the things we are doing.
The firm's net profit fell in the year. The company didn't reply immediately.
According to China News Weekly, two other developers in the east of China were accepting watermelons and peaches from farmers.
A large real-estate developer in China is in default on its debt due to the gloom in buyer sentiment. The Shimao Group missed interest and principal payments on $1 billion of offshore bonds.
The Group has experienced a noticeable decline in its contracted sales in recent months due to the changes to the property sector in China. Sales plummeted in the first five months of the year when compared to the first five months of the previous year.
Evergrande, Kaisa Group, and Sunac China have all failed to pay their dollar bonds. Beijing cracked down on excessive borrowing by developers.
Evergrande was the first Chinese developer to default. Concerns of a domino effect on China's financial sector, and the rest of the world, spilled over to other companies as banks tightened sector-wide lending.
The Chinese government has stepped in to manage Evergrande's crisis, but with more Chinese property firms default, investors are worried. The Greater China chief economist of ING wrote last week that she expects more property developer bond defaults in the second half of the 20th century.
Home sales have improved recently after Beijing promised to support the market. The decline in China's property sales in May was better than the plunge in April.
Potential home buyers will stay away from homes sold by those developers to avoid non-completion risk and after-sales property management risk as a result of this move.
"With developer debt stress expected to persist, authorities will probably continue to focus on boosting home sales to stabilizing conditions by year-end rather than resorting to bailing out developers," wrote analysts from the Eurasia Group.