China’s “loan stop wave” resumes? Homebuyers say slow progress on unfinished projects calls for faster government action – BBC News

September 21, 2022

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Real estate investment in China accounts for 13% of GDP, compared to 5% in OECD countries.

In July this year, a rare protest broke out in China, and some home buyers issued a public statement deciding to stop paying mortgages because of “unfinished” real estate projects. The government immediately introduced measures to allow mortgage payments to be held for up to six months, and to use policy bank funds to speed up construction.

Two months later, Reuters reports that limited progress on the foreclosure projects will exacerbate loan foreclosures.

Buyers of 342 real estate projects across China joined the boycott on September 16, up from 319 at the end of July, according to a list of projects built by loan defaulters on the open source website GitHub.

Ashley (pseudonym) from the central Chinese city of Zhengzhou is one of them.

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