There are many reasons for the formation of uncompleted residential flats, such as the bankruptcy of the developer of the building under construction, insufficient construction funds, economic disputes involved in the project, and the suspension of the project caused by the developer's violation of laws and regulations. Most of them are because the capital chain is broken and the project is unfinished. Developers have been unable to pay, banks are unwilling to continue lending, and the project cannot be transferred to other investors.
Reasons for the formation of uncompleted residential flats: 1, local real estate overheated, after macro-control, credit funds contracted, and the follow-up funds of the project could not keep up, so we had to dismount. For example, most of the uncompleted residential flats in Hainan and Beihai are the sequela of overheated real estate in some areas of 1993. At that time, the growth rate of real estate investment was much higher than that of sales, and a large part of it was the result of blind investment and wanton speculation on land and projects.
2. Due to the drastic changes in the international economic environment, the source of funds was cut off and forced to stop work. For example, most of the uncompleted residential flats in Shanghai were formed during the Southeast Asian financial crisis 1997.
3, the market positioning is not accurate, and the bleak sales prospects force investors to "change their course" and stop work for change. For example, an uncompleted residential building in Xinjiekou, downtown Nanjing, was completed and stopped within ten years. One of the important reasons is that when we make investment decisions, we don't know enough about product positioning and market risks.
4, due to poor construction quality, forced to stop work. An unfinished building in Wenzhou is located in the center of the city. It has been built for more than 8 years and has not been completed. Due to serious quality problems, it had to be demolished by blasting.
5, creditor's rights and debts and other disputes, leading to work stoppage.
Social harm:
Because real estate is a capital-intensive industry, uncompleted residential flats often occupy a lot of money, including a lot of borrowing funds. Therefore, banks are often the biggest creditors and the biggest direct losers. Banks not only lose interest income, but also may lose principal, which is a bad asset of banks.
Unfinished residential buildings also damage the image of the city, waste land resources and undermine investor confidence.
Speaking of uncompleted residential flats, the people are also very sad! After all, this hard-earned money is hard to come by!