In recent years, the real estate market in Shenzhen and Dongguan has been rocked by the “interest-free down payment” scandal that emerged two years ago, affecting over a dozen properties. In June of this year, a third-party institution designated by developers to provide “interest-free down payment” services to homebuyers failed to transfer the funds received from homeowners to banks or financial institutions, leading to defaults among some homeowners.
According to a list obtained by a journalist from《Daily Economic News》, during this period, more than ten properties in Shenzhen, Dongguan, and other areas were embroiled in the “interest-free down payment” controversy, involving projects such as Xincheng Jinhuafu, Huarunli, and Meishengling Shangyuan. The amount involved in just one property, Xincheng Jinhuafu, exceeded tens of millions of yuan, with Xincheng Jinyuecheng over 9 million yuan, and most homeowners owing amounts ranging from 200,000 to 1 million yuan.
The report mentioned that Huang Tao, a homeowner of Xincheng Jinyuecheng, stated that under the guidance of Jiang Guangyuan Company, many homeowners at Xincheng Jinyuecheng borrowed money from banks or lending institutions in the name of renovation loans or consumer loans. It is reported that using renovation loans and consumer loans as down payments is actually considered a violation of regulations.
The third-party company involved is Guangdong Jiang Guangyuan Industrial Investment Co., Ltd. (referred to as Jiang Guangyuan). This company was recently listed in the abnormal operation record by the Dongguan Market Supervision Administration due to the inability to contact them at their registered business premises this month.
On the morning of November 25, journalists from《Every Economy》sent interview letters to the developer Xincheng Real Estate Group Co., Ltd. involved in the incident. In response, the staff handling the matter replied, “The company has no comment, specific information can be obtained from relevant government departments.” Journalists attempted to contact Lin Taobao, the legal representative of the designated company account for Jiang Guangyuan, but his phone indicated it was out of service, and several homeowners expressed that they were currently unable to reach Jiang Guangyuan.
Currently, some properties have been seized by local housing and construction authorities. According to data from Shenzhen Real Estate Information Platform, as of November 25, 55 properties at Xincheng Jinhuafu and 10 properties at Xincheng Jinyuecheng have been seized by the local sub-bureau.
Longgang District Housing and Construction Bureau responded that “as it involves third-party institutions, the bureau has handed over the materials provided by homeowners to the public security authorities, and the investigation is still ongoing.”
Some lawyers have advised homebuyers to collect evidence to protect their rights and have called on relevant departments to strengthen supervision to safeguard the interests of homebuyers.
The origin of the “interest-free down payment” scheme dates back to the overall sluggish real estate market environment. To facilitate property transactions, some developers, in conjunction with Jiang Guangyuan, claimed they could provide interest-free loans to homebuyers with insufficient down payments, enticing them to purchase homes.
Jiang Guangyuan, as the designated cooperative company by developers, assisted homeowners in carrying out the “interest-free down payment” operation. According to the agreement, the loan principal was to be paid in installments by the homeowners to Jiang Guangyuan, who would then transfer the funds to banks or financial institutions.
However, in June of this year, after some homeowners fulfilled their payment obligations to Jiang Guangyuan, the company failed to transfer the money to the banks or financial institutions, resulting in homeowners defaulting on their agreements. According to Tianyancha, Jiang Guangyuan’s main business involves capital market services.