Chinese property developer Country Garden Holdings is hopping on the livestreaming bandwagon to bolster its dwindling sales amid the economic downturn caused by the coronavirus pandemic. The company is the latest mainland developer to launch an online live-streaming campaign to promote and sell its various projects in China.
Country Garden's campaign on social media is currently the largest online property sales promotion ever launched in China. Up for grabs during its live stream event will be more than 10,000 new homes across more than 60 cities. The event was launched yesterday, May 5, with the company offering discounts of up to 50 percent on certain properties purchased during the two-hour event, which was hosted by hired celebrities and entertainers.
Apart from the discounts on outright purchase, the company also sold coupons priced at just 5.5 yuan. Users can use the coupons to avail of a 55,000 yuan discount when they purchase a property developed by the company. Participants of the livestreaming events will also be able to win several consolation prizes such as vouchers for free hotel stays, home appliances, and travel packages.
The company is hoping that the massive promotional campaign would offset its poor sales performance last year and during the first quarter of the year. Country Garden, along with other developers, experienced a decline in sales last year when the government introduced price caps and limits of certain property sales. The situation was then severely exacerbated with the spread of the coronavirus in the country during the first three months of this year.
The pandemic had forced property developers to shut down their sales centers and showrooms for months, affecting walk-in sales. Along with the travel and tourism sectors, China's property sector was hit hard by the spread of the virus. During the first quarter of this year, home sales in China plummeted by more than 20 percent when compared to the same period last year.
Analysts at S&P Global Ratings had mentioned that demand for properties and homes in China still remains high. However, converting that demand into sales will be dependent on a number of factors, which include consumer confidence and a suitable investment environment.
Taking advantage of new technologies such as livestreaming on social media platforms has managed payoff for some developers. China Vanke, the country's second-largest property developer, had reported some success with its own livestreaming campaigns. China Evergrande's livestreaming campaign, which was held on April 26, managed to attract more than 6 million viewers. During its program, the company offered 38 homes with discounts of up to 600,000 yuan.
