Title: Desperate Homebuyers in China’s Tongchuan City Protest Unfinished and Neglected Properties
Date: September 15, 2023
Construction worker Shi Tieniu, along with a group of determined homebuyers, has been living in an unfinished apartment complex in Tongchuan, China for eight years. The condominium complex, known as Gaotie Wellness City, was advertised as a “superior product” that would be “passed down through generations”. However, it remains an uninhabitable shell, leaving residents without basic necessities such as water, heating, and electricity.
Shi, 39, is one of the few dozen homeowners who were lured into purchasing the flats in the promising industrial city in Shaanxi province. With little hope for relief, the desperate residents have taken to protesting to draw attention to the prevalent issue of “rotting” or unfinished homes that have become increasingly common in China’s property market. This phenomenon has worsened during the ongoing years-long property slump, leading to the bankruptcy of numerous developers and leaving others drowning in massive debts.
Despite the residents’ pleas for help, there seems to be no end in sight to their misery. According to UBS, property sales and construction are expected to stabilize at only 50-60% of the peak reached in 2020-21, partly due to population decline and slowing urbanization.
Shi purchased his flat in 2015. The developer, Tongchuan New District Qianjinfang Real Estate, initiated construction on the twelve-block site in 2013, marketing it as a luxury complex with “CEO-level service”. Construction repeatedly stalled after 2015, but flats continued to be sold until 2020. The developer’s name and the project itself went through multiple changes over this period, as verified by multiple housing contracts reviewed by Reuters.
In response to mounting pressure, homebuyers organized protests at Tongchuan city government offices. Although officials claimed to have established a committee in 2020 to resolve the issue, construction never resumed. While the developer could not be reached for comment, both Tongchuan city government and China’s housing ministry failed to respond to Reuters’ request for comment.
The dire situation leaves many homeowners, including Shi, in despair. Many of his neighbors are retirees who had purchased apartments for their unmarried sons or laborers who cannot afford to rent elsewhere. The complex’s deteriorated conditions force residents to navigate through overgrown fields and past abandoned construction machinery to access their unfinished homes.
Once inside, residents must endure staying in threadbare rooms with no access to water, heating, or electricity. The communal living amenities are insufficient, consisting of solar-powered lamps, bare concrete walls, and a first-floor communal kitchen with only one gas burner. Additionally, the communal toilet is housed in a makeshift metal shed.
The devastating impact of unfinished homes reaches beyond the loss of investment. Retiree Gao, a former coal miner who bought a flat in 2018, expressed concerns about climbing numerous flights of stairs as he ages. Desperate situations have become commonplace as smaller developers face liquidity issues, and even industry giants like Country Garden narrowly avoid default.
One homeowner, Qi Xiaoxia, 65, shared her heartbreaking experience, saying, “My son is now 36. I borrowed money from all my relatives and friends to pay for the house. These past few years, we’ve tightened our belts to repay… but we still have no house, and my son has no wife.”
The plight of Tongchuan city’s homebuyers underscores the urgent need for authorities to address the unresolved issue of rotting homes. Without intervention, thousands of homeowners nationwide will continue to face similar predicaments, enduring financial losses, and shattered dreams.
Reporting by Laurie Chen and Xiaoyu Yin; Editing by Lincoln Feast