Chinese buy property online in groups

China has so far escaped the worst of the global credit crunch, but borrowing conditions have been tightened to fight inflation — keeping many consumers off the property ladder.

At the same time, overstretched developers are unable sell houses to generate revenue — or borrow more money from banks — so they can pay down their debts.

Since July, more than 30,000 people have signed up to the “Housing for 10,000” a group buying web site created by Zou Tao, a 34-year-old activist in Shenzhen, a booming city across the border from Hong Kong.

“Our mission is to use the collective buying model to push down housing prices to what average homebuyers think are fair prices, while leaving a reasonable profit margin for the developers,” Zou said.

Of those who signed up, about 500 have already succeeded in buying homes from developers at discounts ranging from 50,000 to 100,000 yuan (US$7,350 to US$14,700), he said.

Others have since duplicated the model in cities such as Xian, Wuhan and Jinan.

A Beijing real estate firm also launched a group buying program in the capital at the end of September targeting newlyweds, recent graduates and white collar workers in their 20s.

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