Real estate in some areas is overheated. After macro-control, the credit funds contracted, and the follow-up funds of the project could not keep up, so we had to dismount. For example, the uncompleted residential flats in Hainan and Beihai are mostly the sequela of overheated real estate in some areas from 65438 to 0993.
At that time, the growth rate of real estate investment was much higher than that of sales, and a large part of it was the result of blind investment and wanton speculation on land and projects.
Extended data:
Because real estate is a capital-intensive industry, uncompleted residential flats often occupy a lot of money, including a lot of borrowing funds. Therefore, banks are often the biggest creditors and the biggest direct losers. Banks not only lose interest income, but also may lose principal, which is a bad asset of banks.
Hainan province, where the phenomenon of "uncompleted residential flats" is the most serious, has increased its efforts to dispose of "uncompleted residential flats" by means of asset operation. That is, Hainan Asset Management Company with independent legal personality is established to undertake, manage and dispose of the overstocked real estate transferred by wholly state-owned commercial banks, and repay the funds to the wholly state-owned commercial banks.
In the process of disposal, for projects with good market prospects and real development value, the relevant wholly state-owned commercial banks may give loan support and close their operations according to relevant regulations.