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Shanghai Developers Investigated for Shady Dealings
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Three real estate developers in Shanghai are under investigation for fraudulent dealings, the city's housing and land authorities have announced.

 

Local media and citizens have been up in arms since it was publicized that Tomson Haijing Garden (Shanghai Pudong New Area) Co. Ltd is selling apartments in its new development project - the Tomson Riviera - at 110,000 to 120,000 yuan (US$14,285 to 15,584) per square meter.

 

Although the apartments went on market in October 2005, the company's website shows that only three apartments have been sold and three other clients have paid deposits.

 

The company has been accused of delaying the sale of the apartments while the price of housing in the city continues its relentless rise.

 

The Shanghai municipal housing, land and resources administration has suspended the project.

 

The bureau is also looking into the business activities of two other companies - Shanghai Jiahe Real Estate Co. Ltd and Shanghai King Wai Holdings Co. Ltd - and has suspended their projects.

 

Shanghai Jiahe is accused of buying 204 apartments out of its own 276 apartments in order to hoard property while the price continues to rise.

 

Shanghai King Wai is said to have cancelled 300 contracts with potential buyers of its property in an attempt to stall sales.

 

The bureau has vowed to punish developers with irregular dealings in the real estate market.

 

In Chinese cities such as Beijing and Shanghai, rising house prices are a major concern for residents. Experts believe that irregularities in the real estate market are contributing to the price rise.

 

(Xinhua News Agency June 6, 2007)

 

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