Zhengzhou government held meeting with seven property developers to help address difficulties amid mortgage boycott

 

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The municipal government of Zhengzhou city, capital of central China’s Henan province, on Tuesday held a meeting with the local housing regulator, district governments and seven major property developers, according to Chinese news outlet The Paper, citing sources from the developers invited for the meeting.

The housing regulator reported the current situation of the seven leading property developers’ projects to the municipal and district governments, according to the report. The developers included Central China Real Estate, Xinyuan Real Estate, Shimao Group, Kangqiao Property, Greenland, Zhengshang Real Estate and Sunac China.

The municipal government aims to help the homebuilders address difficulties, part of efforts to ensure property delivery and resolve the ongoing mortgage boycott crisis, the report said.

Since mid-July, an increasing number of would-be homeowners across China have threatened to refuse to pay mortgages on their homes as construction of the properties has been stalled amid sector-wide liquidity crunch. Related…

The homes in question were acquired through a pre-pay model, in which buyers acquire apartments that are unfinished, or in some cases have not yet broken ground, when the initial deposits are paid. The mortgage boycott has spread to more than 100 cities, threatening to further destabilize the already struggling real estate industry, which has become increasingly reliant on mortgages. 

Many Chinese cities including Zhengzhou, Ningbo and Xianyang have taken various actions to help property developers resume constructions of stalled projects after a growing number of homebuyers across the country threaten to stop making mortgage payments for unfinished properties. Related …