Communist China Calls for Group Home Buying Amid Nationwide Mortgage Boycott

On July 8th, Changchun Municipal People’s Government of China issued a notice to clearly require government agencies, state-owned enterprises and institutions, colleges and universities, scientific research institutes, and social groups to approach real estate development enterprises and organize group home buying.

Similar documents have been issued in many places around Communist China, not just in Changchun.

With consumer and business confidence hit by the CCP virus (Covid-19) lockdowns, the Communist regime is stepping up its efforts to salvage the real estate market by calling for group home buying to create demand and prevent further market price declines. On the other hand, homebuyers of more than 50 unfinished properties across the country have issued “notice” of refusing to repay mortgages for stalled projects.

It is noteworthy that CCP’s latest group home buying campaign is clearly targeting entities with close ties to the regime. Those entities are often considered to have a vested interest in the political system, and have accumulated a certain amount of personal assets, including real estate. They may not be eager to purchase additional property themselves, especially in this emerging real estate crisis.

The CCP has long been manipulating its so-called 1.4 billion people, luring them into various economic activities in line with its dream of a dictatorial China. As the country is running into fiscal deficit as the cost of zero-covid policy soars and revenue falls, domestic consumption continues to lag in key provinces.