Chinese Residents Crowd Stopped Mortgage Installments, What’s Up Xi Jinping?

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“This is up from 28 projects on Monday and 58 on Tuesday. The names on the list have doubled every day in the last three days,” the company told AFPThursday (14/7/2022).

The Jefferies report added that the termination of payments was also experienced by projects that had experienced delays. This incident is predicted to dampen buyer sentiment and weigh on the sales recovery.

“If every home buyer defaulted, non-performing loans would increase by 388 billion yuan (Rp 872 trillion),” Jefferies said.

Analysts from Nomura said the reason the buyers stopped their installments was due to concerns given that many property projects had not been able to confirm the handover date.

“Pre-sales are the most common way to sell homes in China, so the stakes there are high,” he said.

“We are very concerned about the financial impact of the homebuyer’s ‘stop mortgage payments’ move, as China’s property downturn could eventually have a devastating effect on financial institutions.”

China itself has previously been hit by a property crisis after the country’s two real estate giants, Evergrande and Sunac, experienced financial problems due to excessive debt.

Meanwhile, some financial officials themselves are trying to restore public interest in buying property. Recently, developers in Henan Province received crops such as wheat, watermelon and garlic as a down payment for purchasing unions to increase sales in rural areas.

[Gambas:Video CNBC]