As housing prices in cities around Beijing have fallen over the years, a large number of properties have become “insolvent”. Recently, many Yanjiao “free house” information appeared on the Internet, loan buyers hope to get rid of their mortgage by giving away at a loss.
In the past four years, the price of housing has fallen in Sanhe City, Zhuozhou City and Gu’an County in Hebei Province, and many local Home buyers have posted information online that they can give away their properties for free as long as the receiver is willing to take on the remaining loan.
According to a recent party media report, a real estate agent in Zhuozhou said that many local properties have dropped from more than 20,000 yuan (RMB, the same below) per square meter in March 2017 to about 10,000 yuan currently, but the market is still cold, and he only handled less than 20 transactions last year, and most of them were replaced by locals.
In addition, the price of housing near the high-speed railway in Gaobeidian, Hebei, has dropped from over 10,000 yuan per square meter in 2017 to 6,500 yuan.
A local housing authority in Yanjiao said that they have received many more complaints in the past two years because of the continuous price reduction of properties, and the buyers of some real estate projects often join together to ask for a refund.
In addition, many home buyers in Yanjiao are posting information about “free housing” on online platforms. However, the report quoted experts as saying that if the price of a property falls by more than 30 percent, it would be less expensive to take over such “free” properties than to buy a new one, so basically no one would “take over”.
However, this is not always the case in reality.
In February this year, a netizen posted the message “Yanjiao Tianyang City property free gift”, saying that he had a 40 square meter property in Tianyang City with more than 700,000 square meters of loan left to repay, and the current market price is the same, for people who are not eligible to buy a house, it is more appropriate to take over. He said that he is not unable to pay the mortgage, but because he has moved to the provinces, this property continues to be in the hands of only increasingly lose.
The party media claimed at the Time that this gift of property was “just an example”. But Dr. Xie Tian, a chair professor at the University of South Carolina Aiken School of Business, told Voice of Hope that when such things are exposed, they are often just the tip of the iceberg, and there may be more similar cases in the same region, creating a big social problem in Beijing and nationwide.
Xie Tian pointed out that in China, there are now more and more and more common things of various real estate companies, financial companies, banks, financing platforms, funds or financial projects bursting into flames, “which is actually some phenomenon of the total collapse of the Chinese RMB system with the Chinese economy.”
Recent Comments