Homeowners of the luxury residential complex Suhe Bay No. 1 in Shanghai recently protested but were met with suppression. A mainland video host described the event as a "march of 100 billionaires." (Video screenshot)
November 19, 2024 - China’s ongoing economic downturn has led to frequent property-related protests. Recently, homeowners of a luxury residential complex in Shanghai took to the streets to protest delays in receiving their homes, only to face violent suppression by police. Netizens have described the scene as a rare “billionaires’ protest” in Shanghai. Reportedly, more than 300 homeowners have issued notices of collective mortgage suspension.
On November 18, videos circulated online showing homeowners of Suhe Bay No. 1 protesting on the streets. A large number of police officers were dispatched to the scene, with several protesters being restrained and forcibly removed.
A video titled "100 Billionaires Marching" explained the reason for the protest: developers had repeatedly delayed the delivery of properties, and homeowners were demanding refunds.
The video host noted that these homeowners purchased Suhe Bay No. 1 properties in 2021 at a price of around 120,000–130,000 RMB per square meter. Each property costs 20–30 million RMB, and buyers have net worths of "at least 100 million RMB." The situation, the host said, "is indeed embarrassing," adding, "Who would have thought such a thing could happen in Shanghai?"
On November 16, over 300 homeowners from Suhe Bay No. 1, Phase 1 issued a notice declaring their intention to collectively suspend mortgage payments.
The self-media account Modu Xiaofangdi posted on November 17 that the luxury complex, originally called Ankang Garden three years ago at a price of 128,800 RMB per square meter, was later rebranded as Suhe Bay No. 1, further angering homeowners.
The post explained that some followers of the account had also purchased units in Ankang Garden. According to their contracts, the properties should have been delivered by June 30, 2024, but there has been no progress. Homeowners of other luxury properties bought around the same time in 2021 have either moved in or started renovations, but Suhe Bay No. 1 buyers are still waiting endlessly. "The Shanghai real estate market is seriously ill, riddled with problems. Radical solutions are needed to heal the wounds. For these homeowners who have been waiting in vain for three years, their hopes have now been completely dashed," the post concluded.
Netizens commented: "In reality, many luxury developments in Hangzhou face the same neglect, with no one to hold accountable. Homeowners have no choice but to take to the streets."
"The second-hand housing market is already struggling, and if high-end communities lose confidence, what will prop up housing prices next year?"
The homeowners of Suhe Bay No. 1 previously shared materials online, accusing the developer of delays. The complex, which launched in November 2021, sold over 300 units at a price of 128,800 RMB per square meter, generating sales of nearly 10 billion RMB. Phase 1 was initially scheduled for delivery on June 30, 2024, but the developer postponed the handover twice, citing the pandemic and funding issues. Recently, homeowners learned of an "economic dispute" between the developer and the contractor, China Construction Eighth Engineering Bureau, which will likely cause further delays, leaving the delivery date uncertain.
On November 11, Chinese media reported that Suhe Bay No. 1, located in a prime area of Shanghai, would soon release new units. These properties range from 136 to 537 square meters and include 3-4 bedroom layouts. The development boasts an "exclusive location," just 1.5 kilometers from the Bund and 600 meters from the Suzhou River. However, screenshots provided by homeowners show that when asked about the delivery timeline, the developer offered no clear response.
Over the past few decades, China’s real estate sector experienced rapid growth, heavily relying on state-controlled land sales to fuel "land finance" policies nationwide. However, this has led to widespread problems. In the last two years, the slowing economy and mounting debt crises among property developers have triggered an explosion of unfinished housing projects, sparking protests. Many homeowners of these stalled projects have publicly announced mortgage suspensions, creating a nationwide mortgage boycott movement. In response, the Chinese government intervened with measures to ensure project completion under its "guarantee housing delivery" policy. However, the proportion of successfully revived developments remains low.
According to Freedom House’s China Dissent Monitor, protests related to economic grievances, particularly the real estate crisis, have become increasingly frequent, accounting for 80% of recorded public protests last year.
On October 12, China’s Ministry of Finance announced that special bonds could be used for land reserves and to support the purchase of unsold housing stock. However, local governments have shown little enthusiasm for purchasing surplus housing.
Lu Ting, Chief China Economist at Nomura Securities, stated in late September that policies ensuring developers complete their projects should take precedence over government initiatives to buy unsold homes. According to Lu, the number of "pre-sold but unfinished" units in China is approximately 20 times greater than the number of "completed but unsold" homes. He estimated that China has roughly 20 million incomplete pre-sold units.
Cultural historian Zhang Tianliang pointed out that instability in China’s real estate sector is causing a domino effect, triggering waves of rights protection movements. These include homeowners of unfinished properties and investors who have lost their principal and returns. He warned that creditors demanding repayment will increase rapidly, and the recent trend of Chinese state-owned enterprises establishing armed security divisions is intended to deal with such debt collectors.
Zhang believes the most likely crisis to erupt in China would stem from creditors demanding repayment. Such debt disputes could spread across various sectors of society, posing a significant threat to the regime.
Edited by: Lin Congwen
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