From CNBC: 2024-05-12 19:23:52

Around 1,500 homebuyers in Tianjin, China, have yet to move into apartments they paid for eight years ago. The majority of units are still unfinished despite promises for completion by 2019. Buyers are facing challenges in recouping their money and fear retaliation. Some even had police visits to homes.

The developer, Zhuoda Yidu, has asked homebuyers to pay outstanding balances for their property purchases to complete the apartments in 2025 or 2026. Buyers are wary of the proposal, as it requires additional costs at pre-market slump prices. This has caused frustration and uncertainty among the buyers.

The delay in delivering the finished apartments has caused anxiety and financial strain among the homebuyers, some of whom are still paying a mortgage for a second apartment in the complex. The sentiment among buyers is that they will never get their homes, with many rejecting the developer’s proposal.

Issues with the project emerged early on, with reports of violation of real estate rules. The developer faced penalties for collecting money without proper licenses. Despite efforts to rectify the situation, buyers are now facing additional demands for payments to complete the apartments.

The real estate sector’s struggles in China have impacted local governments financially, including Tianjin, which has one of the highest debt levels relative to GDP. Many households rely heavily on real estate for wealth, making delays and additional costs for buyers particularly concerning.

Read more: House buyers in China’s Tianjin have been waiting 8 years for their homes