In China, property developers are facing bankruptcy and construction projects are left unfinished, leaving many citizens complaining online about delayed house deliveries, some lasting up to three years. The government’s “guaranteed delivery” projects also fail to ensure deadlines and quality.
A netizen from Jiangsu recently posted that after waiting for three years, a Greentown construction project with incomplete buildings finally delivered the house. He had purchased it when he got married, and now his children are already several years old. Despite arguments and lawsuits, the house remains unfinished with the basement not even completed. He revealed that this project was under the “guaranteed delivery” scheme, but could only meet relocation standards.
Another netizen from Henan shared that shortly after purchasing a house, he discovered that the community homeowners were fighting for their rights. This was his first home, and before buying, he frequently visited the construction site and sales offices, being told it was a guaranteed delivery project. Due to its location and price, he made the purchase decision. He mentioned, “I heard there have been several rights protection activities already. I haven’t slept well for two days, can’t back out now, regret not joining the homeowners’ group earlier.”
Netizens expressed their frustration, “Guaranteed delivery means just completing the construction, regardless of how many years it takes.” “We received the house, but the main entrance is still unfinished, homeowners are disunited in fighting for rights.” “The quality is too poor. My colleague’s house was delivered last year, but still in dispute over ownership.” “During my internship, they built one floor in 3 days, pouring concrete tonight, welding steel bars in the morning.” “All these problems are caused by pre-sale regulations.” “Now Greentown has run out of money, and the government is helpless.”
The “guaranteed delivery” concept was first introduced as a political mission during a Chinese Communist Party central political bureau meeting on July 28, 2022. In recent years, this has been a significant burden for Greentown. According to data, Greentown has delivered over 1.7 million housing units in the past three years.
Leading Chinese real estate company, Greentown, started a “self-rescue” plan after its bankruptcy, laying off nearly 80% of its workforce in three years. To tackle debt crises, they have been aggressively disposing of assets, participating in legal auctions.
Since last year, multiple branches of Greentown have been reported bankrupt in various regions. According to the national corporate bankruptcy and restructuring database, in August of this year, Zhejiang’s Yuhuan Greentown Real Estate Development Co., Ltd. was declared bankrupt; in July, Taizhou Jiaojing Greentown Jiutai Real Estate Co., Ltd. was also declared bankrupt; in the same month, the Suzhou branch of Greentown faced bankruptcy due to unpaid construction fees.
An industry professional from a Greentown construction company told a reporter that around 2021, when his company was performing well, he was assigned to oversee a branch in a provincial capital, which seemed like a promotion and pay raise. After having a second child, his wife resigned to take care of their children, the living space became cramped, and they decided to buy a larger house, selecting a Greentown property. With the domestic construction industry deteriorating rapidly, he returned to his original company.
In 2023, news of Greentown’s bankruptcy spread, and the Greentown property he had purchased was left unfinished. Despite monthly mortgage payments, his wife being unemployed, and the need to support two children, they still couldn’t move into their new home, causing daily worries.
Several other netizens confirmed to reporters that their houses faced delays of two to three years without being handed over. “Delayed for two years…fell into a five-star pit.” The term “five-star pit” refers to an aesthetically pleasing but problematic situation.
A netizen from Hunan, Xiao Yu, stated, “Guaranteed delivery is just a term, not an action. Once on paper, there’s no follow-up.” He bought his house during the pandemic for personal use, but it was left incomplete. Xiao Yu mentioned that, fortunately, his job was stable, and he was ready to take legal action, though he knew the path to claim rights would be full of obstacles.
Mr. Han from Shandong informed a reporter that a Greentown upscale property was under renovation for over three years. Despite being advertised as luxurious, the actual quality was lacking, causing homeowners to press for house deliveries. The local government categorized it as a project requiring stability and finally delivered it in April this year.
He revealed that to speed up handovers, the construction quality was poor due to using substandard materials and construction practices. The rush for completion led to shoddy work like poorly laid tiles, weak door frames, and inferior interior doors, posing safety risks and potential health hazards.
Experts suggest that the best solution is to completely renovate these properties as ongoing risks to safety and health could have serious consequences, especially if the structural issues are not addressed.
Additionally, Greentown’s Yun Ding property in the region, with prices peaking at 30,000 RMB per square meter, set a new opening record. To avoid the rush of home seekers, buyers had to deposit 500,000 RMB, but despite promises, the project has been delayed for over three years, still falling under the “guaranteed delivery” category.
“The local authorities have arrested several executives from Greentown. Currently, there’s a huge funding gap, requiring substantial support for completion. The second phase’s commencement remains uncertain. If the government remains inactive, the quality and safety risks of all these ‘guaranteed delivery’ projects across the country will come to the surface in the near future,” he concluded.