Construction: Developers'risky deal
(Shanghai Daily)
Updated: 2006-05-24 14:08
The Ministry of Construction yesterday warned investors against buying
commercial properties from developers who sell the units prior to completion and
promise high investment return from rentals, a practice it said poses high risk.
The questionable practices include developers who claim they will lease
commercial properties such as offices, retail shops or serviced apartments from
buyers after completion.
Some even promise to find tenants on behalf of buyers and pay a fixed annual
investment return after their purchase. The number of these risky deals has been
rising, Xinhua news agency reported yesterday, citing an unnamed spokesman at
the Ministry of Construction.
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