In recent years, mainland China’s real estate sector has been plagued by frequent “blasting” incidents, with many projects left unfinished. The “Zhujiang Four Seasons Joy City” project in Nanjing, Jiangsu Province, has been left unfinished for two years, prompting homeowners to lodge complaints on official forums. Recently, the authorities announced that homeowners could opt to cancel their purchases and receive refunds for their initial down payments. This marks the first case in China where property buyers can cancel their purchases and get their initial down payments back after a project has been halted.
Several mainland Chinese media outlets have reported that in Nanjing, Jiangsu Province, the Zhujiang Four Seasons Joy City project, which has been halted for nearly two years, has now been announced that homeowners can cancel their purchases and get their down payments refunded.
On the leading message board of the People’s Daily Online, several netizens have been complaining since 2023 that the Nanjing Zhujiang Four Seasons Joy City was supposed to be delivered in June of this year, but with the project being halted for a long time, the delivery date is uncertain, and they wish to apply for cancellation and refund.
Some netizens also pointed out that the commercial part of the Zhujiang Four Seasons Joy City project has not yet started construction.
The official Jiangning Economic and Technological Development Zone of Nanjing stated last December that the project was halted in November 2022 due to the general contractor Su Zhong Construction being impacted by Evergrande Group.
In May this year, the Jiangning Economic and Technological Development Zone of Nanjing initiated discussions with the developer to start the cancellation process, with funds coming from a regulatory account. Only the purchase amount will be refunded without any interest.
In June, a netizen claimed that they subscribed to a unit in Building 401 of the Luokou Zhujiang Four Seasons Joy City G104 plot at the end of August 2022. After two years of various complaints following the project’s suspension, they are now at the crucial point of negotiating a cancellation, but the sales director at the sales office, Mr. Wang, stated that the company does not allow cancellations in his case. The 141,000 yuan invested was scraped together from various sources and they earnestly requested official assistance.
On July 11, the Jiangning Development Zone replied to the netizen, stating they had urged the developer to present a cancellation plan with clear timelines. The developer indicated that only the purchase amount will be refunded without interest compensation for mortgage loans, and most homeowners have already signed relevant agreements.
One homeowner mentioned that the project was halted due to Su Zhong Construction being affected by Evergrande, and the new general contractor could not resolve the delivery issue. The local authorities intervened to coordinate and plan to use funds from the regulatory account to initiate the cancellation process. The developer has agreed to the cancellations.
Some netizens noted that the refunds only cover the down payment and do not include compensation for mortgage loan interest. However, this move has eased the immediate concerns of the homeowners. The plight of the Zhujiang Four Seasons Joy City project once again serves as a warning on the security of the financial chain for all parties involved.
Public information shows that Zhujiang Four Seasons Joy City is located in Luokou Airport New City in Jiangning, adjacent to Ruyi Lake, with a project area of about 900,000 square meters. Originally designed to be the first large-scale urban complex in Luokou Airport, it was the first project of Zhujiang Investment Group in Nanjing. According to the official website, by the end of 2023, Zhujiang Group’s total assets exceeded 360 billion yuan, with over 74 million square meters of land reserve areas including old and new projects, 90% of which are located in Beijing, Shanghai, Guangzhou, and Shenzhen.
This super complex project consists of 5 plots, including a commercial center, R&D offices, residential units, and initially planned to invest 10 billion yuan. Two residential plots were opened in 2021 and 2022 respectively. The Zhujiang Four Seasons Joy City G98, with a plan for 9 buildings, was first opened in July 2021, currently releasing a total of six buildings – 1, 2, 3, 5, 6, and 7, with an average selling price of about 19,980 yuan per square meter, initially scheduled for delivery by the end of June 2023. The G104 plot was opened in April 2022, with a scheduled delivery date in June 2024.
In January 2023, a homeowner complained that the construction on the G98 plot of the Zhujiang Four Seasons Joy City was suspended in July 2022 and had been idle ever since. Due to the delayed delivery, the developer offered a resolution at the time to transfer G98 homeowners to the G104 project. However, not long after, the G104 plot was also halted.
A netizen named Xiao Li stated that Su Zhong Construction was caught in a dilemma due to the Evergrande crisis, causing the project to hit the pause button, leaving homeowners feeling halfway in the cold. Halted construction, delayed deliveries, hopelessness – these words hung over each buyer like a dark cloud. This not only poses a direct threat to the financial security of buyers but also serves as a significant test of trust in the entire real estate industry.
Anjuke indicates that the current unit price at Zhujiang Four Seasons Joy City in Nanjing is 19,700 yuan per square meter, with total prices ranging from 1.68 million to 1.95 million yuan per unit.
According to a report by China Real Estate News, as an important strategic partner of Evergrande Real Estate, Su Zhong Construction Group has undertaken construction for many of Evergrande’s key projects, including the well-known “Evergrande City.” Following Evergrande’s debt crisis, Su Zhong Construction Group has also been severely affected. Su Zhong Construction Group is one of the companies most affected by the Evergrande impact, with the company struggling to redeem the 10 billion yuan commercial note it held from Evergrande.
Data from Tianyan Check shows that Su Zhong Construction has a large number of lawsuits involving companies related to Evergrande, with dozens of cases where they are the plaintiff.
Up to now, there are 119 instances of Su Zhong Construction being listed as a dishonest executor, nearly 500 instances of individuals under enforcement, and thousands of consumption restrictions under the company’s name.