Shanghai developers probed for shady dealings
7 June 2007
Three real estate developers in Shanghai are under investigation for fraudulent dealings, the city's housing and land authorities announced, according to Eastday (in Chinese). Tomson Riviera, owner of the mainland's most expensive residential high-rise, has been accused of delaying the sale of apartments as the price of housing in the city continues to rise. The Shanghai municipal housing, land and resources administration has suspended the project. The Tomson Riviera development, on the riverfront in Shanghai's Pudong area, received attention last year for not having sold a single unit in its first nine months on the market. The bureau is also looking into the business activities of two other companies - Shanghai Jiahe Real Estate and Shanghai Kin Wai Holdings - and has suspended their projects. Rising house prices have been a major concern for residents of first-tier cities like Shanghai and Beijing. Experts believe that irregularities in the real estate market are contributing to rising prices.