Construction resumes on Shanghai residential complex amid mortgage boycott fears
- The project’s outlook remains cloudy because the developer, Shanghai Dongying Real Estate, remains mired in a cash crunch
- Funding crisis at the little-known Dongying offers a vivid snapshot of China’s troubled property sector, Shanghai-based angel and property investor says
The developer of an unfinished residential complex in downtown Shanghai facing a potential mortgage boycott has resumed construction amid pressure from local authorities.
On Thursday afternoon, a handful of construction workers were seen on site, and one of them told the Post that the construction restarted on August 25, but they could not tell exactly when the construction and development work would be completed.
Dongying could not be reached for comment. It said in a statement on August 21 that the company was making an all-out effort to complete construction and deliver the flats to buyers, but did not give a time frame.
Two homebuyers who spoke on condition of anonymity said a decision on whether to halt mortgage payments had not yet been made, and added that they were not convinced about the developer’s ability to complete construction any time soon.
