The mortgage boycott by Chinese homebuyers is still increasing like never before. The chaos affected 284 property developments in 25 out of 31 provinces.

China’s growing middle classes have invested heavily in real estate because they see it as a safe refuge. However, many private-sector developers crushed their hopes by failing to deliver the houses they had sold, causing an unrest dilemma. 

In an audio recording, a homeowner talked about the financial stress of his family of four. [footage]

Chinese media outlet Xin Tang Ren on July 21 reported that many homeowners who protest to defend their rights are marked as “destroying social stability.”

A homeowner in another recording is a telling case of this. [footage]

In another video, a rights activist yells, “I’d rather be a scumbag than repay my mortgage. People buy a suite for one, two, or even three generations, and what they may end up waiting for is an indefinite suspension of construction or even rubble.”

He added that he still has to pay the mortgage every month despite knowing that the construction will never resume and he will never be able to get his house.

Regarding the mortgage boycott, on July 19, China News reported that Zhengzhou Bank and the local housing authority have recently accused each other of inadequate supervision of funds.

The business owner raises questions about the delay in the construction project of Kangqiao Jiuxi Garden. The spokesperson of Zhengzhou bank, claimed that the bank allocated the funds only with the approval of relevant departments from the Zhengzhou Housing Management Bureau.

However, the Zhengzhou Housing Security and Real Estate Administration staff rejected the bank’s statement. The local housing authority stated that they had reported the situation to higher authorities to hold the bank accountable.

Tang Hao, Chinese commentator and host of “Crossroads of the World,” has also expressed his opinions about the clash between the two parties. 

He said homebuyers must first deposit money into the bank’s supervision account in China. The buyers, sellers, banks, and government departments will supervise this account. If property developers want to use these funds, they need to apply to the bank. Then they will get final approval from the housing authority.

He added that this supervision process would not work if the developers colluded with the housing authority or banks.

According to Hao, many property developers might have colluded with the local government to take these funds out of the supervision account and use them to cover their current debts or other purposes, resulting in insufficient funds for unfinished buildings.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.