Chinese Housing Giant Vanke Shocks Markets With Half-Off Sale in Xiamen

In China, real estate is one of the major ways to store wealth. Land prices have been increasing for last four years, causing worries about inflation.

Wang Shi, Founder of China Vanke Group, delivers a speech during 2018 Content Marketing event at JW Marriott Hotel on June 6, 2018 in Beijing, China. VCG/VCG via Getty Images

China Vanke Group, one of China’s biggest home builders, announced that it will slash by about half the price of its new townhouses in Xiamen, a city in the southeastern province of Fujian.

While price cuts to stimulate sales are common, the deep discount has created widespread furor amid the decreasing viability of the real-estate industry in China and a possible collapse of the property bubble.