Summary: In the latest episode of CCTV-2's financial program "New Observations in the Real Estate Market," the developers' illegal card registration practices were exposed. The program mentioned that Soufang Card is suspected of profiteering by reselling customer resources, and such actions by third-party agencies can enable developers to attract customers at low prices and then open sales at high prices. Consumers should be wary of this type of promotional discount.
Xinhua News Agency, Beijing, May 18th - In the latest episode of CCTV-2's financial program "New Observations in the Real Estate Market," the developers' illegal card registration practices were exposed. The program mentioned that Soufang Card is suspected of profiteering by reselling customer resources, and such actions by third-party agencies can enable developers to attract customers at low prices and then open sales at high prices. Consumers should be wary of this type of promotional discount. Below is a transcript of the news report:
Host: Next, we will focus on the real estate market. "10,000 yuan off for every 50,000 yuan" or "20,000 yuan off for every 100,000 yuan" are the slogans used by some new property developments in Beijing. You just need to deposit money and get a card to enjoy discounts when buying a house. It sounds very tempting.
Reporters found on some real estate websites in Beijing that there are at least 20 housing projects offering discounts like "10,000 yuan off for every 50,000 yuan" or "20,000 yuan off for every 100,000 yuan." Some even offer "50,000 yuan off for every 230,000 yuan" or "100,000 yuan off for every 490,000 yuan." Based on the addresses provided on these websites, reporters first visited a housing project located in Daxing District of Beijing. Upon entering, the salesperson immediately told them that they were currently offering a promotion where registering for a membership card would provide monetary discounts.
(Salesperson-Sales Dialogue)
Salesperson: "For 10,000 yuan, you get 100,000 yuan off. That’s our biggest discount, equivalent to giving you an 84% discount."
Reporter: "That's quite low?"
Salesperson: "Yes, it's only available for a limited time, maybe just this week or next. We'll be opening sales in mid-June."
Reporter: "So how much does your property cost now?"
Salesperson: "It's priced at 19,000 yuan per square meter. After the discount, it's around 18,000 yuan."
This housing development won't open sales for another two months, and the current property price has not been finalized. The price quoted by the salesperson is merely an estimated range. Subsequently, the reporter visited another ongoing housing project also located in Daxing District, which claims to be a high-end community. This project offers a discount of "50,000 yuan off for every 230,000 yuan," but the actual property price has not yet been determined.
(Dialogue)
Reporter: "How much do your houses cost?"
Salesperson: "The pricing hasn't been finalized yet."
Reporter: "Is there a significant discount if I register for this card?"
Salesperson: "Yes, as I mentioned earlier, the number of clients has already overwhelmed us. Definitely, not everyone will be able to purchase the property once it opens. Many people are registering for this card."
In fact, the reporter observed at the scene that not many people were registering for the card—only about 20 people. The salesperson exaggerated merely to attract more people to register. It was understood that all the properties in Beijing currently offering card registration discounts have yet to open sales. Although the discount amounts seem substantial, the property prices remain uncertain, and it is impossible to set clear prices during the card registration process.
Host: From what we've seen in the segment, these tempting discount promotions are all targeted at housing developments that haven't opened sales yet. What is the purpose behind developers doing this? And what risks does it pose to investors?
Reporter: At one housing project in Daxing District, Beijing, the salesperson informed the reporter that this type of card registration discount promotion is a collaboration between the real estate developer and a third-party agency, with all the money being handed over to the third-party agency. The developer will directly deduct the discounted amount from the total property price of the buyer.
Reporter: "What benefits does this type of property sale offer?"
Salesperson: "They have their own customer resources. For example, after you register for the card, your phone number, address, and other information will be useful for their business."
The salesperson revealed to the reporter that from the perspective of the third party, obtaining this customer information could turn into a commodity, which could then be sold to other real estate companies. For the developer, more importantly, through this card registration discount promotion, they can achieve the goal of attracting customers at low prices and then opening sales at high prices.
Real estate industry insider Mr. Zhou: "To put it simply, the property price is decided based on the card registration. This decision is made according to the number of cards registered and the amount of money involved. The higher the amount of money involved in the card registration, the higher the final price may be when it opens." (CCTV "First Time")