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Stop sale of houses that are incomplete

(China Daily)
Updated: 2009-06-30 07:55

The collapse of an under-construction building in Shanghai reflects the disadvantages of selling houses that are yet to be completed. We should stop this system if we want to guarantee the quality of apartment buildings, says an article in Yangtze Evening News. Excerpt:

After an under-construction building collapsed in Shanghai on Saturday, many people who had booked apartments in it demanded that their money be refunded.

But even if the developer were to take full responsibility for the collapse, it is unlikely that he could refund the entire amount paid by the buyers because he has a registered capital of only 8 million yuan ($1.17 million).

The building collapse raises a big question on sale of houses still under construction. The system is unfair to buyers because it passes the risk on to them.

That's why people have been calling for an end to it. And stopping it would not only safeguard consumers' interest, but also guarantee the quality of houses.

Since the quality of completed buildings (and apartments) determines prices, developers will be forced to pay more attention to it before putting apartments on sale.

As long as developers can get buyers to pay in advance, they will not be compelled to maintain quality. We should not let homebuyers to bear financial and psychological losses because of unscrupulous developers.

(China Daily 06/30/2009 page9)