China mortgage boycotters see little progress one month on, as properties remain unfinished and wider crisis simmers
- Buyers are not impressed with the scant relief offered so far and remain determined not to pay for unfinished homes
- Until the fundamental issue is addressed, threats to the property market and the stability of the financial system remain, analysts say
On August 17, nearly a month after Wu Xiao signed a public letter joining around 100 fellow homebuyers in a mortgage boycott for an unfinished housing development in Zhengzhou, the capital of Henan province, she finally received some news.
Her mortgage bank, Shanghai Pudong Development Bank, informed her that she could skip her 1,500 yuan (US$220) mortgage payments in August, September and October. But she is expected to pay double in November, December and January to make up for the payment holiday.
“It is only a temporary solution, but better than nothing,” Wu said.
However, getting even this allowance took some work. “No one approached us after we issued the public letter, and we had to request conversations with the bank, the developer and the housing officials,” Wu said.
