As macro-control policies such as home-purchasing restrictions continue to expand in scope, the national property market has faced mounting challenges in 2011. Under mounting pressure, many developers have committed to price protection or compensation. However, amid an overall bearish market trend, one project is boldly promising price increases — is this meant to further boost consumer confidence, or does it have a solid basis?
Signing the first such agreement nationwide in a down market — is it mere bravado or genuine confidence?
According to our investigation, the developer behind the price-guarantee agreement is Zhangjiakou Dixin Real Estate Co., Ltd., which has two projects in Chongli: the Tang INN, offering hot spring hotel-style apartments ranging from 30 to 80 square meters, and Rose County, a collection of 600 British-style mountain villas. What kind of confidence allows them to be the first nationwide to sign a three-year price-guarantee agreement promising a 30% increase? What level of courage enables them to commit that if the price fails to rise by 30% within three years, they will compensate buyers for the difference?
A 30% price increase in three years — where does this confidence come from?
To verify whether the developer’s claims are empty boasts, we conducted an on-foot investigation and careful research, and now present our findings for public reference.
Reviewing the Agreement: Seeking Evidence and Justification
Before revealing the factual basis, let’s first understand the content of the agreement: the developer is offering a three-year 30% price-guarantee and price-difference compensation for the Tang INN (Rose County) project. Buyers who purchase units in Tang INN (Rose County) after this value commitment was introduced will receive cash compensation from the developer for any shortfall if the property’s appreciation over three years from the contract signing date does not reach 30% of the total property value. A “Guarantee Agreement” will be signed and become part of the purchase contract.
The Beijing Economic Rim: A Value Oasis
First, Chongli is located in northwestern Beijing, in the transitional zone between the Inner Mongolia Plateau and the North China Plain. It is a county-level city under the jurisdiction of Zhangjiakou. Though it is 249 kilometers from Beijing — just a 2.5-hour drive — housing prices here remain relatively low, making it a rare value oasis. While first- and second-tier cities such as Beijing, Shanghai, and Guangzhou are heavily impacted by home-purchasing restrictions, Chongli remains comparatively unaffected, with property prices showing a gradual upward trend.
Government-Backed Project: 81.8 Billion Yuan to Build an “Eastern Davos”
Second, the Chongli County Party Committee and County Government have adopted a strategy of “tourism-based development,” investing 6 billion yuan annually to attract domestic and international capital. Their goal is to transform Chongli into an Eastern Davos within a few years. During the 12th Five-Year Plan period, the government plans to invest a total of 818.5 billion yuan across 128 projects to develop Chongli into an international year-round tourism destination themed around “spring outings, summer retreats, autumn hunting, and winter skiing.” The aim is to build China’s Snow Capital and establish an internationally renowned ski-focused premium tourism city. With four major ski resorts — Wanlong, Dolomiti, Great Wall Ridge, and Miyuan — driving the effort, along with hundreds of world-class skiing activities, the area attracts 600,000 skiers annually. By 2012, visitor numbers are expected to surpass one million. Under the new concept of “Chongli’s World, the World’s Chongli,” the county’s economy is set to grow rapidly. With such a powerful economic engine, property prices are bound to rise accordingly.
Premium Exclusive Amenities Boosting Project Value
Finally, according to our site visit, the projects themselves offer impressive assets: a 7,000-square-meter ultra-large clubhouse, exclusive four-season wellness hot springs, hot spring spas, cafes, billiard rooms, chess and card rooms, and other international-grade leisure and entertainment facilities; Chongli’s only underground hot spring rich in minerals, spanning 3,600 meters; Chongli’s only five-star standard hotel — Fulong International Hotel; and a development centered around 600 British-style holiday mountain villas, complemented by private lavender gardens, hunting grounds, and artificial lakes. Additionally, a high-end star-rated hotel management company has been hired to provide 24/7, year-round exclusive services for resident owners, including full-time property management and trusteeship services throughout the year, significantly enhancing product value and supporting rising property values.
Whether this is psychological warfare or grounded in fact is no longer the most important issue. The key point is the willingness to take on the responsibility of guaranteeing price increases through legal contracts, even when the broader real estate market outlook is uncertain and generally bearish. This approach not only shifts the risk of price drops onto the developer but also guarantees the profit potential for buyers. In a market where integrity is increasingly rare, this commitment stands out as both commendable and thought-provoking.
Signing the first such agreement nationwide in a down market — is it mere bravado or genuine confidence?
According to our investigation, the developer behind the price-guarantee agreement is Zhangjiakou Dixin Real Estate Co., Ltd., which has two projects in Chongli: the Tang INN, offering hot spring hotel-style apartments ranging from 30 to 80 square meters, and Rose County, a collection of 600 British-style mountain villas. What kind of confidence allows them to be the first nationwide to sign a three-year price-guarantee agreement promising a 30% increase? What level of courage enables them to commit that if the price fails to rise by 30% within three years, they will compensate buyers for the difference?
A 30% price increase in three years — where does this confidence come from?
To verify whether the developer’s claims are empty boasts, we conducted an on-foot investigation and careful research, and now present our findings for public reference.
Reviewing the Agreement: Seeking Evidence and Justification
Before revealing the factual basis, let’s first understand the content of the agreement: the developer is offering a three-year 30% price-guarantee and price-difference compensation for the Tang INN (Rose County) project. Buyers who purchase units in Tang INN (Rose County) after this value commitment was introduced will receive cash compensation from the developer for any shortfall if the property’s appreciation over three years from the contract signing date does not reach 30% of the total property value. A “Guarantee Agreement” will be signed and become part of the purchase contract.
The Beijing Economic Rim: A Value Oasis
First, Chongli is located in northwestern Beijing, in the transitional zone between the Inner Mongolia Plateau and the North China Plain. It is a county-level city under the jurisdiction of Zhangjiakou. Though it is 249 kilometers from Beijing — just a 2.5-hour drive — housing prices here remain relatively low, making it a rare value oasis. While first- and second-tier cities such as Beijing, Shanghai, and Guangzhou are heavily impacted by home-purchasing restrictions, Chongli remains comparatively unaffected, with property prices showing a gradual upward trend.
Government-Backed Project: 81.8 Billion Yuan to Build an “Eastern Davos”
Second, the Chongli County Party Committee and County Government have adopted a strategy of “tourism-based development,” investing 6 billion yuan annually to attract domestic and international capital. Their goal is to transform Chongli into an Eastern Davos within a few years. During the 12th Five-Year Plan period, the government plans to invest a total of 818.5 billion yuan across 128 projects to develop Chongli into an international year-round tourism destination themed around “spring outings, summer retreats, autumn hunting, and winter skiing.” The aim is to build China’s Snow Capital and establish an internationally renowned ski-focused premium tourism city. With four major ski resorts — Wanlong, Dolomiti, Great Wall Ridge, and Miyuan — driving the effort, along with hundreds of world-class skiing activities, the area attracts 600,000 skiers annually. By 2012, visitor numbers are expected to surpass one million. Under the new concept of “Chongli’s World, the World’s Chongli,” the county’s economy is set to grow rapidly. With such a powerful economic engine, property prices are bound to rise accordingly.
Premium Exclusive Amenities Boosting Project Value
Finally, according to our site visit, the projects themselves offer impressive assets: a 7,000-square-meter ultra-large clubhouse, exclusive four-season wellness hot springs, hot spring spas, cafes, billiard rooms, chess and card rooms, and other international-grade leisure and entertainment facilities; Chongli’s only underground hot spring rich in minerals, spanning 3,600 meters; Chongli’s only five-star standard hotel — Fulong International Hotel; and a development centered around 600 British-style holiday mountain villas, complemented by private lavender gardens, hunting grounds, and artificial lakes. Additionally, a high-end star-rated hotel management company has been hired to provide 24/7, year-round exclusive services for resident owners, including full-time property management and trusteeship services throughout the year, significantly enhancing product value and supporting rising property values.
Whether this is psychological warfare or grounded in fact is no longer the most important issue. The key point is the willingness to take on the responsibility of guaranteeing price increases through legal contracts, even when the broader real estate market outlook is uncertain and generally bearish. This approach not only shifts the risk of price drops onto the developer but also guarantees the profit potential for buyers. In a market where integrity is increasingly rare, this commitment stands out as both commendable and thought-provoking.