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People who had agreed to buy homes at a residential complex under construction in downtown Shanghai have expressed dismay at the pace of the development, which resumed a month ago, raising the prospect of a boycott on mortgage payments that threatens to worsen sentiment in China's embattled property sector.
Since August 31, only a handful of workers have been conducting building work at The One-Rivera Shanghai, a project led by Shanghai Dongying Real Estate and located on Puyi Road in Pudong, according to two buyers who signed home purchase contracts and declined to be identified.
One buyer said the cash-strapped developer did not appear close to completing the project, and the recent resumption of development work looked "half-hearted" - likely a temporary measure to soothe outside concerns.
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No heavy equipment or workers were seen at the construction site when this reporter visited on Sunday during China's week-long National Day holiday.
Dongying could not be reached for comment.
Outside the construction site of The One-Rivera Shanghai. Photo: SCMP/Daniel Ren alt=Outside the construction site of The One-Rivera Shanghai. Photo: SCMP/Daniel Ren>
Construction had stalled at The One-Rivera Shanghai, which consists of about 300 flats in two buildings, after a liquidity crunch hit Dongying in early 2022. Homeowners in the first building were supposed to get their keys by March 12, 2022, while the second lot was set to delivered on December 10, 2022, according to the buying contracts.
Dongying missed both delivery deadlines.
By early August this year, dozens of homebuyers warned the developer and the local government that they would stop repaying mortgage loans from September if construction failed to resume by the end of that month.
Located within Shanghai's Inner Ring Road, an elevated expressway loop, The One-Rivera offered flats at about 110,000 yuan (US$15,080) per square metre, with prices ranging from 15 million yuan to more than 30 million yuan.
Homebuyers interviewed by the Post in late September declined to say if or when they would stop repaying mortgage loans.
"A mortgage boycott is likely because delivery of the expensive homes has been delayed for more than 500 days, which has already infuriated buyers," said Yin Ran, an angel and property investor in Shanghai. "Given that the developer is stuck in a liquidity crisis, it is difficult to see a happy ending to the drama any time soon."