Thousands in despair after Shanghai’s order on converted apartments

The Shanghai government’s sudden decision last month to target converted apartments built on land that was originally acquired for commercial or office use, has left hundred of thousands of buyers in despair and in limbo.

For many non-local residents, such as Yao An, these types of apartment have represented their final hope of owning a home in the city.

As well as not having home purchase restrictions these apartments are affordable as the commercial land on which they have been built, was acquired by developers at a much cheaper price than residential land.

But with the government edict now forcing developers to change more than 100,000 under-development units back to office use – which means doing away with plumbing, kitchens and shared toilets on each floor, as a part of a wider crackdown on property speculation – buyers suddenly find they have spent most of their savings on units which will ultimately be uninhabitable, and be worth a fraction of what they paid.

“I feel so angry,” the 25-year-old said. “These projects have all got government sales permits, we signed purchase contracts and paid the tax – so why is there no property law to protect us? ”