Three real estate developers in Shanghai are being investigated
for fraud, the municipal government has announced.
An outcry has engulfed local media and citizenry after the
Tomson Haijing Garden (Shanghai Pudong New Area) Co. Ltd valued its
brand new Tomson Riviera apartments for sale at 110,000 to 120,000
yuan (US$14,285 to 15,584) per square meter.
Although the apartments went on the market in October 2005, the
company's website shows that only three have been bought so far
with deposits having been secured from three other customers.
The company has been accused of holding off on selling their
apartments to profit from soaring real estate prices in the city.
Such actions have now been curtailed since the Shanghai municipal
housing, land and resources administration suspended the
project.
The bureau is also examining the business track records of two
other companies - Shanghai Jiahe Real Estate Co. Ltd and Shanghai
King Wai Holdings Co. Ltd – which have also seen their projects
suspended.
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 while Shanghai King Wai reneged on 300 contracts
with potential buyers in an attempt to ward off sales.
Amidst rising house prices in major Chinese cities, relevant
authorities have vowed to end unfair practices that could drive
prices even further.
(Xinhua News Agency June 6, 2007)