SEVERAL developers with projects in Guangdong province are facing bankruptcy, estate agents say.
And many more could be joining them because of the downturn in Guangdong's residential market and the impact of impending introduction of a new real-estate law in China.
David Faulkner, senior partner at property consultants Brooke Hillier Parker, warned potential Hong Kong buyers to avoid projects planned by smaller developers in the more remote parts of Guangdong, because they might never be built.
Some smaller developers based in China were already in trouble, he said. But many of those based outside the mainland were offshoots of larger companies which would not be too badly affected.
Mr Faulkner said speculators who 'may have seen the Pearl River Delta as a bit of a flutter' were now paying the price.
Developers had been hit by price falls of 30 per cent in areas outside Guangzhou and Shenzhen in the past year. And prices would fall another 15 to 20 per cent over the next 12 months, although the worst was now over.
