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 violation of laws and regulations by the developer.
Most of them are because the capital chain is broken, the project is not completed, the developer can't get the money, the bank is unwilling to continue lending, and the project can't be transferred to other investors, so the semi-finished project is naked and beaten by the wind and rain in the scorching sun. There are many such examples, and the disposal of uncompleted residential flats has become a long-term "heart disease" for local governments.
Extended data:
Social harm of uncompleted residential flats;
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.
China Net-chongqing nanshan luxury villa has become a ghost town, and no one dares to buy it at half price.