Seventeen property developers in Hefei city urged local government to curb homebuyers’ “unreasonable protests”
Seventeen property developers in Hefei city urged local government to curb homebuyers’ “unreasonable protests”

Seventeen property developers in Hefei city urged local government to curb homebuyers’ “unreasonable protests”

 

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Seventeen property developers in the city of Hefei, capital of East China’s Anhui province, urged for local government intervention to curb the “malicious protests and unreasonable requests” by homebuyers, first reported Chinese news media including the National Business News citing a joint letter issued by the developers.

A real estate industry insider confirmed the authenticity of the joint letter to Yuan Talks.

The letter is one of the first known efforts by homebuilders joining together to push back against a spreading home mortgage boycott crisis in which homebuyers threatened to stop paying mortgages on hundreds of stalled housing projects.

In a letter to the local government of Hefei dated August 2, the developers said it has become a norm for clients to protest during the course of home delivery, or even in earlier stages when a new development was launched and some homebuyers ask for unreasonably high compensation for some quality issues, bringing mounting challenges to the operators of the projects, according to the letter.

Developers said the protests included requesting changes in aspects or design of the whole development according to their own liking, refusing to pay service fees and asking for huge compensation when there were small issues with home quality, according to the letter.

“Property developers now not only need to face their own internal pressure, but also unreasonable complaints and protests from some homebuyers,” the letter said. 

In addition, the developers urged the local government to summon and issue warning to some self-media and crack down on illegal activities, according to the letter.

“Government should carefully consider homebuyers’ demand; (if) there is any inclination (in measures), it will lead to a chain effect and trigger large volume of illegal protests, resulting in bigger social conflict.” 

The joint letter carries stamp of local subsidiaries or project companies of several property developers including China Resources Land, Poly Developments and Holdings, Zhongliang Holdings,, Longfor Group, Yango Group, CIFI Holdings, Greentown China, Sunac China, etc.

“This time, the request was initially brought out by state-owned developers and other developers followed by signing the joint letter,” according to the National Business News, citing a source from one of the developers.

“Recently some ‘professional’ protesting individuals or institutes appeared in Hefei’s real estate market and a ‘supply chain’ has been formed,” said the source.

“The institutions or individuals organize homebuyers whose properties are scheduled to be delivered in three months, illegally collect money from the homebuyers, make collective complaints, etc, ” according to the letter.

“They also organize homeowners to protest in the developers’ other property projects to disrupt home sales and normal business operation and ask for huge compensations,” the letter said.

Local authorities had reportedly stepped in after the letter, holding meetings with individual developers and protesters, according to Chinese media.