China Developers Plead for Government Help in Face of Protests

Tension from a mortgage payment boycott is spilling over to other areas as more than a dozen developers in a central Chinese province seek help from their local government to restore property sales in the face of protests from disgruntled homebuyers.

According to a letter dated August 2, at least 17 real estate companies in Hefei, the provincial capital of central Anhui province, asked authorities to block the protesters.

According to the letter, protesters tried to disrupt home sales by chanting slogans and pulling down banners. The letter said that some homebuyers refused to fulfill purchase agreements and requested partial refunds.

Developers argue in the letter that they face unreasonable requests from some buyers. There were no examples given that could be independently verified.

Hundreds of thousands of angry homeowners in China have stopped their mortgage payments to protest delays in the construction of their homes. Developers who haven't fallen behind on construction are being targeted by Hefei's request for help.

The Hefei city government didn't respond to calls Friday.

Home sales plummeted 40% in July from a year ago as a result of the mortgage boycotts. More than 300 projects in about 100 cities were facing payment boycotts within four weeks, forcing authorities to corral banks and developers. The government cracked down on several social media sites being used by protesters to encourage more people to join.

A bigger social issue would arise if a lot of people protect their interests. Authorities should pay attention to the phenomenon and tackle problems for developers.

The assistance was given by Charlie, Emma, and Zheng Li.