Home News Multiple real estate projects resume construction after mortgage defaults raise concerns: report

Multiple real estate projects resume construction after mortgage defaults raise concerns: report

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Several real estate projects have resumed construction after homebuyers stopped mortgage repayments due to delays in delivery of apartments and interruptions in construction, domestic news agency Financial News reported on Saturday.

A project developed by Greenland Holdings Co in Ganzhou, Jiangxi Province, eastern China has resumed, the report quotes a related mortgage bank visiting the project site on Wednesday.

Workers entered the construction site in groups from June. In addition, as a result of negotiations, the local government purchased a part of the land of the project whose construction has not yet started, and depending on the progress of construction, the land transfer fee of nearly 400 million yuan ($ 59.2 million) is charged to Greenland. The report said it had decided to return it to.

Another project in Zhengzhou, Henan Province, central China, is scheduled to resume construction in August.

Meanwhile, real estate developer Kaisa Group responded to rumors that homebuyers stopped paying mortgages in one of the projects in Shenzhen, saying more than 300 construction workers are working in the field. Since then, it has been calling for regular visits to homebuyers. June, according to a statement released by the company via a Wechat account on Thursday.

Yan Yuejin, research director at the Shanghai-based E-house China R & D Institute, told Global Times on Saturday.

The joint efforts of local governments and developers to solve problems may provide some examples of other projects, Yang said, with eight cases of “suspension of mortgage repayments.” Predicted that the moon would be dealt with.

The phenomenon of homebuyers jointly suspending mortgage repayments has recently attracted attention, with more than 100 projects reported in 18 states in China. According to media reports, the real estate developers involved include Evergrande Group, Greenland Holdings Co and China Aoyuan Group.

Mr. Yang previously stated that ensuring on-time delivery is a top priority for dealing with mortgage defaults in order to prevent real estate issues from turning into social issues.

As of Thursday 15 Chinese Banks Disclose Exposure to Mortgages By default, they emphasized that the risks they face are “controllable.” According to guancha.cn, which quoted data from jwview.com, 10 of them reported a total of 2.1 billion yuan in banks with bad debts or late payments.

The Bank of China Insurance Regulatory Commission is also monitoring the event, reiterating its goal of stabilizing monetary policy in the real estate sector and its efforts to guide financial institutions to participate in risk mitigation.

Global Times

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