Around 1,500 homebuyers in Tianjin, China, have not been able to move into the apartments they paid for eight years ago. The majority of the units are still unfinished, causing frustration and concerns among the buyers. Some of them paid in full upfront while others paid in installments. Their main request is to return the houses and get their money back as they feel deceived by the developer.
The developer, Zhuoda Yidu, has asked the homebuyers to pay any outstanding balances on their property purchases to complete the apartments by 2025 or 2026. However, this demand has caused distress among buyers who have already invested a significant amount of money in the properties. Many feel that they will not receive their homes, despite spending more money. This situation has led to a sense of hopelessness and disbelief among the buyers.
The delays in delivering the apartments are attributed to the impact of the Covid-19 pandemic on the real estate industry in China. Furthermore, the household registration system, known as hukou, has added complexities to the situation. The policy dictates where one’s children can attend school and offers various benefits. Cities like Tianjin have used hukou policies to attract new residents, leading to increased demand for housing.
Despite China’s recent real estate issues, the problems faced by these homebuyers highlight systemic challenges in the industry. Following the Covid-19 pandemic, delivery delays have become more common as developers struggle to maintain operations. This has resulted in a situation where homebuyers are left waiting for their properties, with no clear resolution in sight. The central government has expressed a commitment to ensuring the delivery of homes and protecting the interests of buyers.
The developer, Zhuoda Yidu, faced issues with certification and licensing for the Xiyu Garden project in Tianjin. This raised doubts among buyers about the legitimacy of the project, leading to concerns about the completion of the apartments. While some efforts were made to rectify the situation, many buyers still remain skeptical about the developer’s ability to deliver on their promises.
For many households in China, real estate has been a significant source of wealth, often accumulated through generations. The high costs of purchasing property in major cities like Beijing have led some buyers to seek more affordable options in places like Tianjin. However, the delays and uncertainties surrounding the property purchases have left many buyers feeling financially strained and uncertain about the future.
