Some Guilin homebuyers are moving into unfinished houses due to economic reasons or to put pressure on developers and local authorities. But unfortunately, it has become part of the latest campaign by homebuyers across China.
Xu , a Guilin resident, said in an interview that her family’s savings were all used to buy a house. However, the house was far from what the builder promised.
There was no gas or running water. In her room, there is nothing but a bed.
She added that she and 20 other buyers shared a temporary outdoor toilet.
In 2019, Xu bought the 0ver 750 sq. ft. (70-square-meter) apartment from the developer, Jiadengbao Real Estate. At first, construction progressed rapidly.
However, in June 2020, the court accused Jiadenbao’s parent company of illegally raising funds and confiscated $48 million (340 million yuan) worth of property. Construction work then came to an abrupt end in mid-2020.
According to The Shanghai E-House Real Estate Research Institute, in the first half of 2022, suspended projects accounted for 3.85% of China’s housing market.
Yan Yuejin , research director at Shanghai E-House Institute, said the Chinese real estate market is susceptible to unfinished apartment cases. 90% of new homes purchased in China are bought before construction begins.
He pointed out that if this issue is not addressed, it will affect property transactions and the government’s credibility. It also may exacerbate the developer’s debt problem.