[photopress:tomsonshanghaichina.jpg,full,alignright]A Hong Kong-listed developer has called off a global auction of one of Shanghai’s most expensive apartment buildings, blaming government restrictions on foreign investment in mainland real estate.
Tomson Group has been struggling for a year to sell parts of its plush Tomson Riviera residential complex. Of the first 74 apartments put up for sale, the cheapest, of 434 square metres, costs RMB 38 million ($4.68 million) while the most expensive costs more than RMB170 million ($21 million). Or make me an offer.
When the project had just been launched Michael Bao, project manager for Tomson Riviera, said ‘many potential buyers’ have visited the apartments, but would not say how many clients, if any, had put down a deposit. The answer appears to be none. According to the city’s official real estate website, not a single deal has been confirmed.
With true selling enthusiasm Michael Bao said at the time, ‘We are confident about the project thanks to its incomparable location.’ This because Tomson Riviera is one of only two apartment projects right on the Huangpu River in Pudong’s Lujiazui area.
In July, the company put one of the complex’s four towers up for bidding in a global offer. It advertised the riverfront property extensively in international media. It has now withdrawn that offer because government steps to cool the property market since the auction was launched deterred buyers, Tomson said. (No mention that the stratospheric prices might have deterred buyers just the littlest bit.)
In a statement last week, the company said it would now ‘explore the feasibility of other investment directions.’ So far, only two of the complex’s 220 apartments have been sold. And, no, we have no idea what other investment directions might be feasible.
Source: The Standard