Unfinished Homes In Nearly 100 Cities Are Escalating Real Estate Crisis In The Communist China

235 unfinished residential properties in nearly a hundred cities are escalating real estate crisis in the Communist China. Among the involved developers, Evergrande ranks top one with the largest number of unfinished projects, according to a report by Liberty Times Net on July 14.

 Recently, the homebuyers in Jingdezhen, a city in Jiangxi province initiated the first move to refuse to pay the mortgage on unfinished homes. It is spreading like wildfire across the country, the homebuyers in different cities are exposing unfinished projects and boycotting mortgage payments.

 Scaffolding surrounds an unfinished residential building at Evergrande Cultural Tourism City, a China Evergrande Group project whose construction has halted, in Suzhou’s Taicang, Jiangsu province, China October 22, 2021. (Photo Credit: REUTERS/Aly Song)

 According to incomplete statistics, as of July 14, there are 235 unfinished projects across 96 cities in 24 provinces in Chinese homebuyers’ boycott list. Among them, Henan is the hardest hit province, with 44 unfinished properties. In addition, the first-tier cities like Guangzhou, Shanghai, Beijing, and Chongqing have also been stumbled in the crisis.

 Those unfinished projects belong to more than 40 well-known real estate developers in China, including Evergrande, Sunac, Aoyuan Group, Tahoe Group, Sinic Holdings, Kaisa Group, Yango, and Greenland Holdings etc. Among them, Evergrande tops No. 1 by possessing 62 unfinished properties.

 In recent years, Evergrande has been mired in a debt crisis, its scandals such as arrears in project payments, refusal to pay employees’ wages, and defaults on wealth management funds etc. has kept on breaking out.

 The company recently faced bankruptcy and liquidation due to its inability to repay its dollar debts. Lacking of funds made it almost impossible for Evergrande to complete the unfinished projects.

 Some senior executives at domestic banks in China estimated that up to 2-3 trillion yuan ($296-444 billion) of mortgage loans are linked to unfinished residential projects, involving up to 20 million victimized Chinese homebuyers.