Falling house prices have led to the toughest sales for property developers and estate agents in years. But in Beijing, several agencies have come up with discounts and promotional plans to boost business. However, despite their efforts, these tactics are not paying off.

Falling house prices have led to the toughest sales for property developers and estate agents in years.(File Photo)

Once regarded as one of the most lucrative businesses... now many property agencies in Beijing are finding themselves in a rut, unimaginable just one year ago.

Ren Qixin has been working for one of the capital’s biggest property companies for years. He says the knock on effect of the cooling measures is tremendous.

Ren Qixin, Vice Manager of Yahao Real Estate Agency, said, "We lost a lot of customers this year. More than half of the buyers last year couldn’t even qualify to buy a home, had the purchase limits been implemented then."

Business in Yahao last year stood at 15 billion yuan. So far this year, they’ve made only 10 billion yuan.

The drop in sales has forced many developers to lower their prices.

As well as offering discounts, some agencies promised to send a car as a gift for their buyers.

Chen Meng, Property Analyst, said, "There are really very limited potential buyers out there. Developers are using any way that can help them win over consumers. On the other hand, they also need cash to keep afloat."

But people are still not buying.

Beijing Resident said, "Prices are still falling and I believe it will continue to fall. I will wait for some time to buy a home."

In the same vein, investors with older properties for sale are lowering prices, trying to get their houses off their hands quickly. But in a market where everyone keeps watching rather than buying, sales are stagnating.