Dozens of housing projects across China have recently resumed construction after stalled progress led to a nationwide boycott. Global Times He said on Sunday.
The newspaper detailed the report, first published by China’s Financial News on July 16, and said:
Greenland Holdings Co. has recently resumed construction of a residential complex in Ganzhou, East China, Jiangxi Province. Construction workers appear to have returned to the construction site. The report said that after negotiations, the regional government decided to purchase some of the land under the project that has not yet begun construction, and to refund a land transfer fee of approximately 400 million yuan ($59.2 million) to Greenland in line with the progress of construction.
Construction of another Mingmen Cuiyuan residential complex in Zhengzhou, central China’s Henan Province, is expected to resume in August. Several departments, including the project developer and the developer’s de facto controller, set up a special fund to encourage the continuation of the housing project.
A subsidiary of the debt-ridden China Evergrande Group, whose business is located in southern China’s Pearl River Delta, said on Friday on its Wechat account that 59 residential projects in the region have resumed construction, employing more than 12,000. . Location.
The news that some Chinese housing projects have resumed construction activities since July 16 comes 48 hours after Chinese regulators announced on July 14 their plans to promote residential construction, where progress has recently stalled.
This was announced by the China Banking and Insurance Regulatory Commission on Thursday. [July 14] It promised to guide financial institutions in managing risk based on market trends and to maintain stability in property finances after some home buyers defaulted on their mortgages and developers delayed deliveries.” Global Times reported.
China’s central government announced plans to intervene in the country’s real estate sector last week after some Chinese citizens refused to pay mortgages on unfinished homes they had previously purchased until they saw visible progress on construction sites. The rise in payment delays has led to a general boycott of mortgage payments across China, with more than 100 overdue housing projects reporting mortgage defaults in recent days.
Song Ding, a researcher at the China Development Institute in Shenzhen, voiced his doubts. Global Times On “whether stalled projects can be sustained” on 17 July.
He said it “continues to see” whether Beijing can deliver a long-term turnaround in China’s mortgage default crisis “given the liquidity pressures faced by cash-strapped developers”.
Source: Breitbart
