The crisis of mortgage payments in China has left some young people afraid to start a relationship, get married, and create a business.
In China, a young man often considers owning a house a necessity before getting married.
But the property bust has sent shock waves through the country’s middle class. Many house buyers in unfinished projects in China have to abandon their plans following the recent boycott of mortgage payments.
Bloomberg reported that a young man surnamed Li is an employee at a tech company. He has his salary cut by 25% this year.
Li now has to use a third of his salary to make a mortgage payment of $600 a month on a stalled project developed by China Evergrande Group in Wuhan.
Earlier in July, he joined about 5,000 house buyers in a boycott to push the local government and Evergrande to complete the unfinished project, which is supposed to accommodate 39 residential skyscrapers.
The 26-year-old man is terrified about his prospects and has to postpone any plans of getting married. He said he is afraid to start a relationship because he is unsure if he would receive the house—which is seen as a necessity for getting married in China.
Trapped in unfinished buildings, other young Chinese people have no confidence in starting a business.
According to Bloomberg, a man named Peter has abandoned his plan to start his own business and buy a BMW 5 Series. His decision came after China Aoyuan Group halted the construction of its project in Zhengzhou, Henan province, where he had purchased a $300,000 house.
Peter is now saddled with a mortgage that swallows up to 90% of his disposable income on the house he may never see.
Not only young people but older citizens are also exposed to the housing crisis.
Liu, a retired person in Jingdezhen, could not obtain a bank loan and used his life savings of about $118,000 to buy an apartment. He had made two visits to the construction sites but found no activity from the developer.
Liu said he hoped the government could solve the problem, but it seemed unlikely.
Li, Peter, and Liu are among hundreds of thousands of house buyers protesting against more than 300 halted projects in more than 90 cities across China.
With real estate development stagnating across the country and house prices falling, buyers of unfinished buildings see their wealth drain away.