Chapter 1452: Huo Siqian, What Are You Trying to Do? (3)

Translator: Noodletown Translations Editor: Noodletown Translations

“We just got news that the 13 major real estate developers coalesced to push down housing prices… to less than 4,000 yuan per square meter.”

“Less than 4,000 yuan? Have they gone mad?” Qin Chu was immediately enraged.

Unlike other industries, real estate prices couldn’t be raised or reduced on a whim; there are certain market rules companies must follow. Ever since the global depression in 2008, the domestic real estate market had been booming.

As the biggest city in J Province, C City’s prices weren’t as staggeringly high as Jing City, but the market had maintained an average of 8,000 yuan per square meter.

The ten or so major real estate developers had set their properties at the same prices, so the main area of competition was in location, amenities, and service.

GK ventured into the real estate industry more than two decades ago, focusing on high-end living. Therefore, although its prices weren’t incredibly affordable, the quality of the buildings and resident services were amazing.

The company had enjoyed a great reputation in the city. Qin Yumin was a traditional man who usually stuck to the convention. Thus, when he was president, he took a lot into consideration and was willing to bring benefits to the civilians.

When Qin Chu assumed the presidency, GK’s housing prices were no less than 8,000 yuan per square meter. If anyone dared to lower the prices without approval, they would be held in contempt and banned by the other companies.

Today, without any written or verbal agreement, 13 of the major real estate companies suddenly lowered market rates to under 4,000 yuan per square meter.

This was absolutely insane…

“Why would they do that? Their costs are at least 3,000 yuan or so per square meter… if the prices are lowered to 4,000 yuan, not only will they fail to earn money, they’ll even have to pay out of pocket for promotion fees, have they gone mad?” Huo Mian thought out loud.

“I don’t know what happened specifically, but people are going crazy. Customers who paid their deposit with us are demanding refunds, they said they’d rather purchase apartments elsewhere.”

After three seconds of silence, Qin Chu looked up at Yang. “Spread the word, I’m holding an executive meeting in ten minutes.”

“Yes, Boss.”

Huo Mian frowned… it felt like a hurricane had just hit their company out of the blue.

That night, the residents of C City went crazy.

Major media outlets all reported on this incident, and some out-of-province residents even flew to C City to buy property… just so they could sell it and make more money when the market rises again.

Housing was built for those with definite need. Some needed to buy property to get married, some needed to buy new property because their old apartments are too old, and some needed more room because they were expecting a second child.

Those were people who actually needed to purchase housing. However, because of this sudden price reduction, residents began buying properties regardless of whether they needed it. It was as if these apartments were distributed for free. Some even borrowed money from friends, family, and loan sharks, just so they could stock up while prices were low.

Qin Chu explained the situation to company executives as well as the immediate consequences. Then, they brainstormed strategies but in the end, decided to observe for a while in case this was just all a prank.

How long could these low prices last?

After leaving the conference room, Huo Mian walked up to him. “Honey, how was it?”

“We’re going to observe the market for a while, I wonder why the other companies did this.”

Qin Chu didn’t think he was so despicable that the other companies would come together just to make his life miserable.

Therefore, he thought they were just playing a prank that would be over in a day or two. Thus, he didn’t draw up any imminent plans of attack.

Huo Mian felt restless and asked worriedly, “I have a feeling that things aren’t as simple as they seem… How are things going at GK Real Estate?”