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Shanghai faces first mortgage boycott as stalled housing project angers homebuyers
- Homeowners of The One-Rivera Shanghai say the residential complex appears nowhere near completion despite missing two delivery deadlines
- Buyers are likely to stage a boycott on mortgage payments, as the delivery of the flats has been delayed for over 500 days, one analyst says
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Daniel Renin Shanghai
People who had agreed to buy homes at a residential complex under construction in downtown Shanghai have expressed dismay at the pace of the development, which resumed a month ago, raising the prospect of a boycott on mortgage payments that threatens to worsen sentiment in China’s embattled property sector.
Since August 31, only a handful of workers have been conducting building work at The One-Rivera Shanghai, a project led by Shanghai Dongying Real Estate and located on Puyi Road in Pudong, according to two buyers who signed home purchase contracts and declined to be identified.
One buyer said the cash-strapped developer did not appear close to completing the project, and the recent resumption of development work looked “half-hearted” – likely a temporary measure to soothe outside concerns.
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No heavy equipment or workers were seen at the construction site when this reporter visited on Sunday during China’s week-long National Day holiday.
Dongying could not be reached for comment.
Construction had stalled at The One-Rivera Shanghai, which consists of about 300 flats in two buildings, after a liquidity crunch hit Dongying in early 2022. Homeowners in the first building were supposed to get their keys by March 12, 2022, while the second lot was set to delivered on December 10, 2022, according to the buying contracts.
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