Real estate is a key sector of the Chinese economy.
Since the housing reform of 1998, which ended the free distribution of housing by employers and established a housing finance system, the market experienced a long-lasting era of prosperity.
In 2020, the total sales revenue in the real estate market exceeded 17 trillion yuan.
Garlic and Wheat Accepted as a Home Down Payment in China
Using commodities as currency is quite the “norm” in China.
In mainland China, some new homebuyers are paying for their homes with wheat and garlic.
To entice buyers in rural areas of the Henan Province, a firm is running a limited-time promotion meant to reduce the financial burden of buying in the depressed Chinese real estate market.
The offer allowed buyers to knock off 2 yuan from their down payment for every catty (a Chinese measurement equalling about 500 grams) of wheat they bring in.
A Down Payment of Wheat!
For farmers with lots of grain to spare, they can potentially save up to 160,000 yuan (approx. $23,900) on a down payment for their home.
That’s a HUGE price reduction in the overall price of the average Central China Real Estate’s properties for sale in Henan, which range in price from 600,000 to 900,000 yuan.
This isn’t the first time this year that Central China Real Estate has accepted crops in place of traditional currency.
This promotion followed closely after a period where the firm accepted garlic as a form of down payment, to the tune of 5 yuan saved per catty delivered.
Over the course of 16 days, 30 total transactions brought in 860,000 catties (516 metric tons) of garlic.
Why Wheat?
The fact that China is offering its citizens the ability to trade with wheat is a result of two major economic trends in China.
Chinese wheat prices surged to $477 per metric ton in June, a record high and 30% increase since 2021.
Simultaneously, property sales in China are down, owing in part to the country’s tight COVID-19 restrictions and broader concerns about an economic slowdown.
Chinese cities have introduced various methods to entice buyers and property developers, offering deals ranging from free parking to post-sale renovations.
READ MORE: 10 Impressive Tips For Building Wealth, According to The Bible
ABOUT THE WRITER:
Elena Patestas is a journalist and writer for Valuetainment media. She attended Pepperdine University in Malibu, California, and Adelphi University on Long Island, New York. She was born and raised in Roslyn, New York, and currently lives in Miami, Florida.
Elena is passionate about bringing positive change to our world and believes education is the root to solving many societal problems. After overcoming a chronic health condition, Elena became passionate about health and believes food is the key to preventing dis-ease and achieving optimum health.
Amongst her many goals, she hopes to bring positive, impactful change to our world to create a healthy, financially sound, and unified society.
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