Shanghai property developers investigated for shady dealings
6/6/2007 16:13
Three real estate developers in Shanghai are under investigation for
fraudulent dealings, the city's housing and land authorities have
announced.
Local media and citizens have been up in arms since it was
publicized that Tomson Haijing Garden (Shanghai Pudong New Area) Co Ltd is
selling apartments in its new development project - the Tomson Riviera - at
110,000 to 120,000 yuan (14,285 to 15,584 USdollars) per square
meter.
Although the apartments went on market in October 2005, the company's
website shows that only three apartments have been sold and three other clients
have paid deposits.
The company has been accused of delaying the sale of the
apartments while the price of housing in the city continues its relentless
rise.
The Shanghai municipal housing, land and resources administration has
suspended the project.
The bureau is also looking into the business
activities of two other companies - Shanghai Jiahe Real Estate Co Ltd and
Shanghai King Wai Holdings Co Ltd - and has suspended their
projects.
Shanghai Jiahe is accused of buying 204 apartments out of its own
276 apartments in order to hoard property while the price continues to
rise.
Shanghai King Wai is said to have cancelled 300 contracts with
potential buyers of its property in an attempt to stall sales.
The bureau has
vowed to punish developers with irregular dealings in the real estate
market.
In Chinese cities such as Beijing and Shanghai, rising house prices
are a major concern for residents. Experts believe that irregularities in the
real estate market are contributing to the price rise.
Xinhua
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