By Cai Yingbo
THE Shenzhen government will not support homebuyers who want developers to refund or compensate for losses caused by falling housing prices.
"We protect the legal contracts between property developers and homebuyers, and property owners' demand for refund due to price drop is not supported by the government," Chen Kai, director of the property management department under the municipal land resources and housing management bureau, said.
As the city's housing market slows down and housing prices drop, many buyers are claiming refunds or other kinds of compensation.
"I bought a 120-square-meter apartment at a high price of 15,600 yuan per square meter in July last year. But people needed to spend only 11,500 yuan per square meter for the newly built apartments in February," said an owner surnamed Zhang.
Developers are refusing to bow to the demands, claiming the contracts were signed in accordance with the principles of equality and voluntary compliance, and they didn't violate any agreements.
However, some developers have agreed to improve facilities within housing complexes, or furnish new apartments.
"We will invest around 10 million yuan to improve facilities to provide a more comfortable living environment for the homebuyers," said Dong Xiaoming, operation director with Gemdale Corp., a property developer.
Chen said the land resources authority would examine whether property developers had acted unlawfully.
Experts say purchasing houses is a kind of investment. They warn that investment in property is equally risky for both property buyers and developers.
"Housing prices fluctuate in accordance with market changes, and it will be very difficult to determine compensation for property owners according to the civil law," said Li Dongliang, an official with the city's lawyers association. ()
(编辑： 方娟静 )