Evergrande Online Campaign Sales Commitments Reach $8.3b

(Bloomberg) -- Property developer China Evergrande Group said it has received deposits for more than 47,540 homes in the three days since the beginning of an online marketing campaign aimed at countering the impact of the novel coronavirus.

The total value of contracted sales commitments secured by deposits reached approximately 58 billion yuan ($8.3 billion), according to a statement from the company sent by WeChat. That’s for the three days starting Feb. 13 and compares with January’s figure of 40.6 billion yuan.

Evergrande estimates that a total of over 100,000 home purchases could be achieved by the end of the two-week promotion blitz, which includes a price match promise and a cancellation clause. With a conversion rate of around 70%, that could translate into 60 billion yuan worth of sales, the company said.

The developer plans to offer a 25% discount on its properties including apartments and office buildings during Feb. 18-29, according to a separate statement. The discount will be narrowed to 22% during March 1-31. Evergrande will also offer additional promotions related to down payments and mortgages.

To contact Bloomberg News staff for this story: April Ma in Beijing at ama112@bloomberg.net;Emma Dong in Shanghai at edong10@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Ryan Lovdahl, Jake Lloyd-Smith

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With assistance from Bloomberg