Since the beginning of the year, the news related to mainland real estate companies had been tending to fall through repeatedly. Despite this, the default of these companies' corporate bonds is always alarming. Furthermore, there are still millions of incomplete first-hand projects that need to be handed over to buyers or resold after completion.
At present, a number of listed mainland real estate companies have been heavily indebted in examining the balance sheet account. In fact, it is impossible for these companies to return to normal after restructuring. However, there are still a considerable amount of completed first-hand properties or near-complete projects of these companies that are readily available on sale. If this is the case, these companies will try to sell them all to recover the funds to reduce their debts.
In view of the need to sell as soon as possible, the price of these first-hand properties has been reduced by 50%, and they have employed agents to promote these projects by offering generous commissions.
At the beginning of this year, there was a new project in Foshan that was near completion, and those new units of this project had been reduced by half original price. The agent in charge of sales said that the developer of this project could not take possession the sales fund because all the proceeds from the sales of these properties would be deposited into the government's supervision account so that it could ensure that the sales revenues would not be misused by the company before completion. Because the company is not a high-risk indebted incorporation, and these discounted properties were welcomed by many Hong Kong customers.
Unfortunately, the buyers of these properties recently received a notice from the developer by informing that their units could not be delivered early next year. After receiving the notice, the buyers made an appointment with the agent of the project to request further explanation. The agent stated that they would continue to follow up, but there was still no guarantee when the properties would be delivered. In fact, how can these agents care about the life and death of clients, it is because their concept is that the loss of one customer is no big deal. Finally, it will have another client replace the missing one.
The author has ever drafted an essay to persuade Hong kongers not to buy first-hand properties in the Greater Bay Area, if you must buy, you can only buy completed projects and you can obtain real estate certificate once after full payment. The projects of those indebted mainland developers should not be included in the buyer's list. The above-mentioned project in Foshan is owned by a large-scale developer with a sound financial status, but it was still impacted by the downward property market.
The intended buyers still need to consider how to transfer their funds to Hong Kong after selling their properties in the future. In fact, it is difficult for mainland property owners to remit all the proceeds from the sales of properties in China, so it is not advisable to buy these properties in Greater Bay area in coming years.
