• LoamImprovement@beehaw.org
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      1 year ago

      This means that real estate developers are saying “I can’t sell this house for $250K but I can sell it for $300K and give you a 1Kg ingot worth $50K” to get around the overvaluing of the house, because people won’t buy the house at the prices Chinese government insists they should be sold.

    • Pregnenolone@lemmy.world
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      1 year ago

      Governments are preventing companies from rapidly dropping house prices. But because they’re not worth what they’re forced to keep charging by the government (government isn’t forcing anyone to buy for example), developers are needing to add extra value to the sale to get buyers, hence the gold bars.

      House is worth $300k, but the government is forcing you to list it for $500k, so if I throw in $200k worth of gold bars, the whole sale is worth the price.