In China, as the economy slows sharply, real estate agents' cash flow deteriorates and the problem of suspending condominium construction continues nationwide, and there is a movement to notify that people who purchased the property will not repay the mortgage asking them to proceed with the construction. Concerns are growing about the future of the industry, such as the spread.
In China, the economy is slowing down significantly due to the effects of the "Zero Corona" policy, which thoroughly suppresses the infection of the new coronavirus.
Under these circumstances, the suspension and delay of condominium construction has become a national problem due to the deterioration of the cash flow of real estate agents.
On the other hand, the movement to notify the contractor that the person who bought the property will not repay the mortgage has spread since the end of last month, and according to a private think tank, 70 as of this month. There are about 200 properties in these cities.
If the movement to refuse repayment actually spreads, there is a risk that the number of non-performing loans held by financial institutions will increase, but financial institutions have announced one after another that there are only a few loans for properties that are not under construction, and financial supervisors also have properties. He has shown a policy to work on the delivery of the loan, and is nervous about the spread of confusion.
In China, the government's tightening of regulations to curb overheating of the real estate market has led to a chill in market conditions, and the subsequent economic slowdown has led the government to revitalize real estate sales. Concerns are growing about the future of the industry.