Evergrande Says It’s Back to Work, But Homeowners Say Not Fast Enough | WSJ 

4 days later: “Evergrande has officially defaulted”

Evergrande: Please be patient, we are working as quickly as we can. We will get your apartments ready for your grandson's or great grandson's wedding. Don't worry !

As of yesterday they missed a bond payment deadline. Why is no one talking about this? Last time I checked they have defaulted on their debt.

A lot of these homes are purchased strictly for investment/speculative purposes and will sit unoccupied and unfinished for years even after being delivered by the developer. The owners have few places to park their savings and real estate has delivered reliable gains for decades. If homes values ever collapse as they did in the West back in 2007, there will be widespread financial pain.

Buyers waiting to move into the new homes? Uh almost all the buildings build are completely uninhabitable, no water lines, no sewer lines, no electrical lines, no insulation, no weather proofing, no HVAC/ventilation. They are building worthless concrete husks.

The real problem is the rapid population decline. High real estate prices are killing the birth rate. Without new babies, these overpriced apartments will never have buyers. The property boom is just taxation in a different format. Basically mortgage a young couple’s life long surplus values into a medium of exchange. Eventually people figured out such apartments aren’t worth anything without the population and economic growth.

Not their homes. It's their speculative investments. This is all going to end badly for average people.

Lol the last time they were working they almost broke the financial system. I wonder what they will be up to now.

Yes but at what quality are the homes going to be when they are rushed?

I’ve followed this a little lately, and the story doesn’t really do the situation justice. But I’m guessing the WSJ doesn’t want to upset the CCCP….

One million people demanding their homes. 50+ million empty apartments/house in the same country. The beauty of a command economy. 😍

Who in their right mind pays for an appartment before construction has even begun?

If this had happened in the US , the government would have already stepped up to bailout the poor billionaires .

1 million homes due, lets round up and say they can do 57k in three months, that means that they will need 4.5 years at that rate to finish all the homes. The 50% mark is years away, I doubt the owners will want to wait that long.

"We are going to compare comments on social media about Evergrande..." Riiiiiight... You mean the 1% remaining comments after the other 99% got removed by their government? Mmmm, sounds legit.

Let's be real: Even if these apartments / homes are completed, there's a problem that the construction of these properties would be of shoddy and poor construction! What's the point of getting a new home / apartment that's going to fall apart in a few years?

It’s been reported suppliers and construction companies have not been paid for the unfinished apartments. And those that are forced to work on sites without compensation are using the cheapest material to complete those projects.

This is one of the worst videos I’ve come across attempting to provide coverage and actual insight to Evergrande, Chinese property developers, Chinese Real Estate, and the CCP’s involvement regarding its economy fundamentally built upon Real Estate. I wouldn’t expect much from Wall Street Journal for depth/quality when they just go through ‘Twitter’ feeds to establish what they believe to be market sentiment. Thank god Economics Explained popped up as a suggested video immediately after for better content. If you’re genuinely curious about this topic I’d suggest the following RU-vidrs: Laowhy86, MHFN, Economics Explained, Patrick Boyle, How Money Works, among a ton of others that provide better coverage of China. Thanks for coming to my TedTalk. Edit: You can use me for a Dislike button since youtube loves censorship😊

The world over property development is a very fragile business and is dependent on availability of easy credit. Whenever credit is cut off property developers start failing and home buyers who purchased on instalment are financially ruined.

What is more concerning....is that it is not only Evergrande. It's dozens of Chinese real estate companies that are facing mounting debt payments. Evergrande is not the only company who can trigger a financial meltdown.

It might look good …but you know it’s inside is put together w crazy glue.

Shoddy construction might end up being the biggest story in this fiasco. Trillions will be wiped out on that alone. You can go to the bank on that if they still have their doors open.

1.4 million units that has remained are going to be sold, as completion dates are adjustments, and so as shelf life where prices also adjusts. China is not negligent on its projects, since it is the subsidiaries of taxes paid by the private sectors, as well as the public sectors that adjusts, makes completion of work attested as well with its inventories, as private sectors are. The Patent filings through People's supreme court as well as concerns regarding investments are also answered, properly by the employees of the court, since it is the highest judicial standards of China for concerns in businesses, legal standards, as well as targeted time frames/adjustments made for the betterment of consumers.

There’s probably a bigger problem. Prices will probably drop on ALL propertys . This will add to listings for sale at cheaper prices and people defaulting on their mortgages and then banks getting into trouble. This is normal in a property downturn and Chinas will probably be especially big. This is only the start . Of course China does everything big and starts a property downturn with massive developers/agents owing billions in debt and massive amounts of appartments that people don’t even live in. Only in China

its best to wait after construction before purchasing that's gonna be the long term solution unfortunately

Meanwhile, we printing dollars like crazy

Same with last real-estate Chinese property bubble (2005-2011) in China. Rinse and repeat, history always repeats itself.

1.4 million sold, unfinished properties but you are only delivering 20,000 per month! Unacceptable. They are 6 years behind.

Trust me. Evergrande is about to die and Chinese government won't save it.

Evergrande just defaulted on international bond payments.....

evergrande says wsj has it's back

Most common phone call in China right now Buyer: Hi i would like to apply for a mortgage please Bank: We would love to help just tell us who the developer is Buyer: Evergrande Bank Brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr

Yea, they just missed an enormous bond payment. Don’t hold your breath y’all.

no wsj this is not our problem this is only china's problem...

Hopefully Evergrande do not recover from this.

A private transaction between property developer and buyer. It would be better to purchase a property on completion.

Trust is lost. I don't think anyone is buying that things are "okay". CEO needs to pay back the money and be personally liable. Most of the things that are fked up in this world is that companies shelter people from personal liability.

They're done. This will end in tears.

Yeah but look at all the corners they’re gonna cut to deliver these homes

Buyers need to be patient.

Dude a housing bubble explosion wont be that easy to handle.

Sorry I missed this. Too busy reading "Popular Invessting Apps Might Hold a Tax Surprise" 300 times. I mean it's at the top of the front page for over a month now it must be important....

It reminds me of the ship 🛳 stuck in the canal

Perhaps this report is a little too sanitized? Who is the Wall Street Journal working for here?

The sooner they resume construction and finish, the sooner they will collapse on their own due to tofu quality.

Could the Chinese government judst tryingto socialize the real estate sector with this reckless execution of the crackdown? It's common for property developers to leverage themselves to the max to finance projects.

The Evergrand situation brings into question, how is US commercial real estate, and banking doing? Which US media refuse to talk about.

Useless to finish them if walls collapse after i punch them 😅🤣

Link to the Chinese real estate blogger?

These homes will be finished in ways that will fall apart in a few years. Goal now is to save face in the immediate term

At at current delivery rates by Evergrande, it will take 10 years or more.

I wouldnt even squat and take a dump in one of those finished appartments. The quality of chinese construction is similar to landfill.

time to dampen down the speculative frenzy there! should let some of these companies fail to teach the speculators!

I thought there are more homeless in US than China, which country actually has a real estate problem?

US government should help evergrande to get out of debt problems, 😊 why US government and media are concerned about the real estate market in China than its own internal affairs. Look there are millions homeless in US city. why it not so much concern to solve.

This is nothing compared to its high speed rail debt. Nothing.

I think you're missing the point. Even if Evergrande deliver the 1.4 million apartments, property values are taking a huge hit because of what they have already done. So everyone who bought one has a loss baked in as they get their 🔑

Evergrande needs to make tough decisions, we keep the money, investor lose the money. Bye bye.

Actors making it look like they're still building. A bigger lehman bros. coming soon.

Too many idiots over there forking money over an apartment that hasn’t been built yet.

Bankcrupt already. Who work ? No money for material

Contractors will do this to you if you let them. One project at a time folks.

Imagine buying bananas as an investment.

That 78% in personal wealth is in housing. That is a lot of personal wealth loss if prices drop by 30% .

Man North Korea is about to experience new lows. CCP will greatly reduce it's financial support there.

They just defaulted. Legacy media is scummy.

Y’all had more than enough time to spend an extra 90-120 seconds explaining the “Three Red Lines” policy as well as how they take their presale revenue to begin new projects, producing a financial exchange akin to a Ponzi scheme. Why leave out such an important piece of information?

Won't property values go up if there is development shortages?

Show me something updated, w the Payment.

Nice video.

Not sure how safe these Properties would be, with all their financial problems…..

CH has learned well how to shore up its finance from potential crash from the US refinance mortgage scheme that eventually sent the EU into bankruptcy for few years in the last decade. Evergrande borrows a lot of money from china construction bank under a beijing guarantee to survive. But its future is bleak because of the cuurent rapidly depreciated china commercial as well the residential real estates. Evergrande wants to expand its business to the asean and pacific nations, which is now dominated by taiwanese, Singaporean, and south korean capital invesments. Indochina peninsula is estimated of $12 billion usd market for infrastructure and buildings.

I don't see any other way but national banks funding the company to finish the pending projects and then go for a controlled collapse.

Massive real-estate shortages even though there are ghost towers (with no souls) all across the world.

Lol RIP Chinas economic miracle 😂

Last time i checked these buildings last about 5 years before falling down and burying its occupants. I wouldnt have much faith in regulators keeping building codes in check as an investor.

Then people affectted are never sat8sfied that China authorities doing its best under difficult sutuations

the reporter is graciously beautiful 😳

Ghost cities!

Does the building on the left look super crooked? 1:09

not if, but when

Evergrande company is gonna come back stronger and more efficient than ever before. I had made a similar prediction about China when Covid-19 first emerged in Wuhan city.

Government restructuring 🤣🤣🤣🤣🤣🤣🤣

I thought they had already gone bankrupt?

This will bankrupt anyone involved including US banks. The end is near, Lambada Lambada 🕺

ughhhhh this just in....they just officially defaulted....it's gonna be all over YT soon...

Where did they dig up this Elaine lady? She looks like she's still hung over from a crazy party the night before. 🤦

prepay never, nothing

Home owners (✘), Home-future owners (✓). I am sorry for them, but that is a bad investment decision they made, other tax payers shouldn't be paying for thier lost.

The Chinese bubble will pop before 2035. *Mark my words*

Lol, the Chinese house of cards is finally starting to crumble. Who's surprised? Not me.

EverGrand is competing the home 🏡 of the high ranking rich CCP members not the poor

Evergrande is too big to fail. Oh ,wait. I heard similar phrase before.

Older people are responsible for the world's housing crisis. Let COVID have them.

invest in empty cardboard boxes lol

in CCP, it all about "face"... no substance

EverGrand is finishing the homes 🏡 of the rich 🤑 CCP members not the poorest investors

They're complaining?? they should be grateful, they are only an inch close to getting their 78% Investment/savings wipeout into dust. imagine working for 10-15years and then getting all of your money wiped out, as if you are working 15 years for free, and you probably still have to pay the bank for another 10+ years. those people don't understand how grave their situation can be, and how worse it could be if those companies went bankrupt

Giant ponzi scheme - rob peter to pay paul

I though they defaulted?