onsdag 8. desember 2021

Pay Now, Own Never: China’s Failing Developers Leave Buyers in Debt

Zhang Junxiao and his wife have lived in a cramped, barely furnished apartment with bare, concrete walls for nearly three decades in the central Chinese city of Zhengzhou. As the 51-year-old planned for their retirement in mid-2019, he decided to purchase a new apartment. He chose a two-bedroom apartment with an elevator in a complex called Qifucheng — “Happiness Town” — a complex of more than 20 buildings then under construction at the edge of Zhengzhou’s city center, slated to be completed in 2020.

Zhang borrowed money from friends and relatives to pay cash for the 550,000 yuan ($86,000) apartment to take advantage of a discount for cash offers. All told, he borrowed more than 100,000 yuan from relatives and friends and spent all of his savings for retirement. Two and a half years later, Zhang still has the debts, but no new apartment.