Why People Live in Unfinished Buildings (Rotten Ended Buildings) in China?

In China, the phenomenon of rotten-ended buildings has been widespread for many years and is related to the reform of China's housing system.
On July 3, 1998, the Chinese State Council issued The Notice on Further Reform of the Urban Housing System and Speeding up Housing Development. It clarified the direction of marketization, monetization, and commercialization reform of urban housing and initiated a thorough reform of the housing system. It ended the "physical distribution of housing" and implemented monetization of housing allocation, creating a housing supply system based on market supply.
Since then, the real estate sector has become one of the key drivers of China's rapid economic growth.
Zhang Dawei, the chief analyst of Centaline Property, said that the various quality and delivery problems in the real estate market are basically all related to the pre-sale system.
The presale ratio of houses in major cities in China is generally above 80%, and in some cities, it is even above 90%.
This presale system allows small businesses with little capital strength to become real estate developers. As long as they pay the government for the land and have a little money to start the project, they can start collecting money from the pre-sales, and at the same time they can take out a loan for the project.
For the Chinese Communist government, as long as they get the money from land sales, it’s not a big concern as to whether the project will ultimately be completed or not. So in the construction of real estate projects, there are situations where developers go bankrupt or simply run away with the money, leaving the projects to rot. In fact, no matter the reason for the real estate project failures, the loss ultimately falls on the buyer (general public) in the end.
#China#UnfinishedBuildings#RottenTailBuildings#Presale#Evergrande
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[sidneyraboflatz]

Forget about American Greed, China has the corner on the market!

[eggmine]

My gosh, I've never heard of fraud of this level before. My heart goes out to those people who were victimized by this.

[virn]

So much talk about western greed but in reality Chinese had the top spot all along.

[bengherasim]

Bunch of thieves.... starting with the government who allows this action to occur .... talk about kickbacks under the table along the way

[fyfoh]

Nothing could ever convince me to buy property in China.

[Nuloahc]

it's common to sell a house when it's still in development, but what it's shocking to me is how can the banks allow the morgage without seeing the house the person is asking to buy. Where I live, you give a small down payment, then the majority of the funds are transfered only upon the final morgage contract, when the house is ready and completed.

[mysticsoundwave]

So that's why there is no homeless in China. They can all take any unfinished apartment and call it home....

[AmabossReally]

So basically Kickstarter for real estate

[Darren_Xero]

By looking at all those unfinished buildings, isn't that makes China a country of cardboard facades?
Yeah... So much of the vibrant greatness of China...

[aveanderson]

YouTube is surely hiding your content from the rest of the world for this is epic reporting. More people need to see this!!

[xyz]

I’m saving this video in my “true crime” folder, because what is being done to these people is nothing short of criminality…

[alainw]

This is why a lot of wealthy chinese invest their money by buying overseas property because they know the risk is a lot lower than buying investment property in china.

[TheWintergreen]

You can bet that they are counting such projects in their GDP figures.

[bgregg]

The most complete explanation I have heard regarding the "ghost cities" of China. The scale of the problem is vast. There are over 50 million of these unfinished condo units most all of which were presold. Even worse, due to the poor quality construction used, they are crumbling into dust & most will need to be demolished.

[topsuperseven]

I have a few video clips of these buildings, a few random pics and I wish I took more close-up inspection videos. I worked in construction long enough to know some of these are doomed to fail and maybe even collapse. Others are just outright safety hazards and the reason why is seen in this video:
You cannot expose the concrete skeleton for years and years like that without degradation. I have 'rotten tails' exposed to years of extreme heat and cold, extreme rains and winds where corners are "sanded" to smooth rounded edges, you can see some where the color has changed from concrete gray to black to white 'mold-like' swirls. exposed steel rods appear to be rusting and jutting out of what is supposed to be the interior. Ive seen edges crumbling everywhere or wearing away from years of rain and wind.
I have seen moss, ivy and grass (yes, seriously, grass) growing on top floors, up walls of exposed concrete.
Then I've seen them quickly finished years later, fastening shiny glass floor by floor and voila you have a brand-new shiny building. Yet, inside, they literally patched up and glued that together (if at all) and slopped some paint around on what is yes.. really a 'rotten' interior.

[hanma]

Now thats brutal and inhuman treatment towards the homeowners, who had high hopes for themselves and their family. Taking a loan of half a million dollar to pay for an appartment that has its construction abandoned is the worst thing that can crush a middle class persons hope.

[anotherdroid]

The government was on television recently talking about how wonderful the low rents were compared to the US. I suppose they get free air conditioning too.

[sigitharyadi]

Just Chinese company scamming other Chinese.
Can you imagine what will they do to citizen of another country?

[velayuthams]

Govt is hand in hand with developersNo steps taken to safeguard citizens. Worst govt

[TheOriginalJenafire]

The more I learn about China, the more similarities I see with North Korea. No wonder they're so cozy with each other.