The Chinese regime has strongly intervened and requires real estate developers to ensure progress. However, many developers are just pretending. As a result, progress has been slow on many construction sites.
Since July, homebuyer protests have taken place across the country and are expanding. In addition, wider mortgage boycotts have added to fears of a persistent slump in China’s property market.
According to Natixis, loans worth about $330 billion (2.3 trillion yuan) would be at risk if all outstanding projects ended in mortgage boycotts. As a result, China has set up a rescue fund holding as much as $44 billion to appease the owners and a particular loan of $29 billion for unfinished projects.
However, property developers and banks said it might take time for the funds to work.
Despite assurances from the authorities, many projects have not yet resumed construction. The local authority has not given a clear statement. As a result, more and more owners join the protests.
Wending Wang, who lives in Zhengzhou, said that if construction has not resumed after six months, he will directly stop all payments.
Ashley, a home buyer in Zhengzhou, pointed out that only a few people were working on the construction site, and it was just a move to appease the homeowners. In fact, the Zhengzhou city authority canceled meetings with homebuyers several times and warned homeowners not to go to Beijing to protest.
The protests are getting bigger and bigger as the 20th national congress approaches. The boycott continues to expand on social media.
As of September 16, in a community called “We Need Homes” on GitHub, owners of 342 projects nationwide joined the boycott, up from 319 at the end of July.