BIZCHINA / Biz Media Digest |
Real Estate: Land developers face crackdown(Shanghai Daily)Updated: 2007-03-28 14:02 A new banking regulation may force land developers to finish projects and sell vacant holdings by keeping track of the funds they raise from pre-sales, according to sources with the Ministry of Construction. The developers could be required to open special bank accounts where funds from all pre-sales must be deposited and used specifically to finish projects. Many Chinese realtors sell units in their unfinished buildings, but instead of using the funds to complete construction they plow them into new projects. This has caused some developers to suffer serious cash-flow problems forcing them to abandon unfinished buildings and leaving purchasers with nothing to show for their investment. (For more biz stories, please visit Industry Updates) |
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