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At unfinished Evergrande apartments in central China, buyers seek answers By Reuters

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© Reuters. A unfinished residential building can be seen through the construction site gate of Evergrande Oasis in Luoyang (China), September 16th, 2021. REUTERS/Carlos Garcia Rawlins

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By Yew Lun Tian

LUOYANG, China (Reuters) – A steady stream of anxious apartment buyers flowed into the sales office of the Evergrande Oasis complex outside the city of Luoyang this week, seeking answers after construction was halted by the giant developer’s severe cash crunch.

According to an anonymous staff member, work on the condominium’s five towers and the 16 blocks of apartments in the sprawling central China development has been stopped since July and August, respectively.

The complex is among a host of uncompleted homes across the country that have seen work grind to a standstill as result of the crisis engulfing China Evergrande Group

Evergrande, the country’s No. With $305 billion worth of debts, regulators warn the 2 property developer must raise money to pay investors, lenders and suppliers. This could lead to wider financial instability in the country.

Tan Liangliang is one of 200 concerned buyers in a group on social media who are worried about Evergrande Oasis’s financial stability.

Many such organizations have formed to support the Oasis project. The towers that remain unfinished are located next to rows of high-rise apartment buildings.

There were 16 blocks in various stages of completion. Cranes lay empty and there was no worker. Plaster sheets were seen flapping from balconies while steel reinforcement bars protruded on others.

Some buyers claimed that they anticipated construction would resume next month, while others stated that sales representatives had told them to hold off. A staff member, who refused to be identified, said that construction would resume late October or early November. He did not give any other details.

The staff member said that apartments had been sold at a price of 9,800 Yuan (1,518.81/square metre), or approximately $197,000 per 130-square metre unit.

The news that construction had been stopped caused me to collapse. It hurts! “, a middle-aged woman told Reuters outside the office. For regular people like us, all of our life-savings went into the house.

Raymond Cheng, a CGS-CIMB Securities managing director, said last month that Evergrande across China still has hundreds of thousand of unfinished units to deliver to customers.

Evergrande declined to comment immediately on Cheng’s figures or the Oasis project.

The company stated that some projects were suspended due to delays in payments to contractors and suppliers, and it is currently in talks with these parties and working with government officials to restart construction.

The company held a pledge signing ceremony this month with representatives from all project teams, promising that construction will continue.

Another buyer, who declined to be identified, said that Evergrande was the choice she made when we decided which property we wanted to purchase two years ago. “Because it is such a large brand, cashflow issues are not a problem like other property companies,” she stated.

Buyers have placed their trust in the government and asked Evergrande for a guarantee on its ability to deliver units.

One homeowner added, “This issue is national. I don’t believe that the government will let this blow up.”

($1 = 6.4524 renminbi)

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