Zhengzhou city vows to resume all stalled housing projects by Oct 6, to hold meeting with developers on Thu – report

 

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The city of Zhengzhou, capital of central China’s Henan province, vowed to start building all stalled housing projects within 30 days using special loans, reported Chinese news outlets including The Paper, citing a notice dated September 6 released by the local government.

“The goal is to achieve sustained construction on all suspended property projects in Zhengzhou by Oct. 6,” showed the notice.

Zhengzhou’s housing authority will hold a meeting with related property developers on Thursday, in a move to ensure a full resumption of stall housing projects in the city, according to the report, citing real estate firms invited to the meeting.

Real estate firms must pledge valid assets to local government-backed financing companies if they want to get the special loans, according to Chinese media. Real estate firms should do everything possible to ensure project delivery, by raising funds through disposal of undeveloped lands, assets and equities, and returning misappropriated funds, according to the notice.

Property developer should do everything possible to ensure project delivery, by raising funds through disposal of undeveloped lands, assets and equities, and returning misappropriated funds, according to the notice.

Homebuyers in at least 80 cities have threatened to stop paying mortgages since late June as developers stopped building projects due to strapped liquidity or strict COVID-19 restrictions. The mortgage boycott has added to worries about a prolonged slump in China’s property market, which has lurched from crisis to crisis since the summer of 2020 after regulators stepped in to cut excess leverage.