Saturday, October 23, 2021

Chinese authorities don’t care about real estate defaults: Homebuyers

Chinese home buyers have been badly hit by lapses in residential property development. Many families are facing unbearable financial loss due to purchase of unfinished houses. An array of these half-timbered residential villas sit right in front of the local district office of Tianjin, the largest coastal metropolis in northern China.

On 15 September, home buyers protested in front of the district office of Binhai New Area, a sub-provincial district and state-level new area within Tianjin that the government had once touted as a replica of the development in Shanghai.

The banners said, “Binhai has a story. Who are the goons?” “There are incomplete houses in front of the government!” The home buyers shouted in one voice, “Dishonest developers, give me my house!”

Homebuyers also hung a banner at the Binhai Bay Fortune Center’s sales office. It said, “Unscrupulous developer Fenghua land, give it back to people’s homes!”

Mr. Wang (pseudonym) is one of the victims of the unfinished construction. He said the realtor delayed the project by more than five years. He was issued a “delayed delivery notice” every year since he bought the property five years ago, and the final notice said the project would be postponed until September 15, 2021.

home buyers in debt

“September 15th of this year is the fifth year since we bought the house. Home buyers were left with no choice but to protect their rights to the local government,” Wang told the September 21 Chinese-language edition of The Epoch Times. told.

However, according to Wang, the local government’s response was, “it is still under investigation”.

Mr. Cheng (pseudonym) was one of the first stage customers in the presale by Fenghua Land. He invested all of his savings and the money he borrowed from friends and family to pay a down payment of $186,000 in September 2016.

“A business store costs over $310,000. We have to make a monthly mortgage payment of over $1,550. I thought when the building was ready in late 2017, we could rent it out to ease some of the burden. were or could do some business,” Cheng told The Epoch Times on September 22.

However, construction was halted, even as electricity and water were not connected.

“That house, we haven’t even moved in yet, was already covered with weeds, torn down, and even leaking,” said Cheng, moreover, it was only half done Was.

“The developer found that the local development would not sustain the sale of the properties, and decided to halt construction. They would not refund the payment or terminate the construction. We won the lawsuit, but they did not pay the penalty for breach of contract. Will do,” he said.

Cheng said that many Chinese developers have failed to deliver housing projects, and that the government is pushing for demonstrations resulting in potholes trapping home buyers.

“There was a leader in Tianjin who believed that since Shanghai had a bay area, there should be one in Tianjin as well. The government invited developers and promised to give everything. He promised that the Tianjin Bay area was part of the Shanghai Bay area. will run parallel. But now, the Tianjin Bay area has become a deserted land,” he said.

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“For five years, the construction was abandoned. It’s sitting right next to the government, but nobody cares.

“We went to the district government and pulled up a banner, and the management committee said it would be resolved, but they didn’t even get the developer.”

Yug Times Photos
Tourists fish on the roof of a submerged house at Huanxiu Lake in Jixian County, Tianjin Municipality, China, October 1, 2006. (China Photos/Getty Images)

On 15 September, the dharna lasted from morning till 4 pm, there was no response from the government.

Cheng said delays in housing delivery have left many families in debt. “Basically, each family paid over $310,000, and no payments were made for five years. There was a 70 year old man who had bought a house; He almost died after an operation a few days ago. The old man walked around the building every day hoping to see his house ready. “

He said there is another person, who is close to 60, thinking of selling his house to pay off the mortgage as he has no other income. He was even thinking of jumping off the building.

Cheng describes his situation himself: living in a 430-square-foot home with two kids and a monthly mortgage. “Being an expatriate in Tianjin, we want to buy a house and settle down. We are trying our best to make some money. Now, children are staying in my hometown for school,” he said.

collapsed real estate companies

Many Chinese home buyers have found themselves trapped in a cycle of incomplete homes without any relief channels.

Cheng said: “When we filed the suit in 2018, the developer said he would hand over the house in 2018. When the suit was filed in 2019, he said the house would be handed over in 2019. When the suit was filed In 2020, he said the house would be handed over in 2021. There was no one at the construction site; the court didn’t even look at him, and he was indefinitely delayed… there’s no room for justice now “

An analysis showed that, as of July 20, there are at least 1,100 real estate companies filing bankruptcy since 2017. That’s one bankruptcy a day on average in the Chinese real estate industry.

Epoch Times tried to contact Binhai Bay Fortune Center, but the phone had already been hung.

Cheng said that Chinese land developers still operate business in a primitive way, namely: “buying land, borrowing money, drawing a large pie to attract local government investment, and selling when prices rise. If so, the game is over.”

He indicated that the real estate industry itself is behind huge profits, and when the profits disappear, the project is abandoned: “Chinese companies look nothing for credibility. The government doesn’t do anything about it.” .. This is what is happening in the relatively large city of Tianjin in China.”

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This News Originally From – The Epoch Times

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