Xiao Cui explains the current situation. Developers have been going bust, leaving many apartment buildings uncompleted. Buyers can sue the developers, but they are not going to a single cent even if they win the case.
Meanwhile, they are still liable for the bank loan they have taken up to buy the property. In the past, these unfortunate individuals would squeeze out everything that’s left to continue paying a lower installment renegotiated with the bank. Since the property is uncompleted, the bank gains nothing by repossession. This time round, the folks have collectively refused to pay up. They seem to know that while the banks can deal with a handful of defaulters, they simply do not have the manpower to manage so many defaulters.
The Global Times, as usual, made light of the situation, insisting that it’s the evil West that has blown matters out of proportion. This is an excellent opportunity for “loyalists” and optimists to enter the market and help dispel all rumours.
Comrade Shi, an authority on abandoned developments, explains why the situation is so common.