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Substandard Public Project to Be Torn down

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The developer has not yet set a reconstruction date.

"The building project must be delayed according to the timing of the current demolition process," a Daxing district housing commission office official, who declined to be named, said.

"The precise date when residents can move in has not yet been determined."

The office has assisted homebuyers get refunds since Nov 12.

"I'm not sure I can find another affordable home if I give up this apartment," an unnamed resident said on Sunny Paradise's online forum.

"But even though I can get some compensation from the developer, I'm still losing a lot of money because I have to spend a lot to rent another place."

Li Wenjie, regional general manager of Centaline Group property agency, said in an earlier interview: "It's typical that affordable housing developers cut costs, because such compounds are less profitable than commercial homes, although the country already offers preferential policies for affordable housing project developers, particularly in terms of taxation and land leases."

Sunny Paradise's apartments were sold for about 4,190 yuan (US$634) per square meter, while commercial apartments in the same complex cost 23,000 yuan per square meter.

No quality problems were found with the expensive apartments, for which the developer used a different cement supplier, earlier reports said.

Other subsidized housing projects have been found to have similar quality problems. The walls of the Ruiqi residential complex in Beijing's Xisanqi area, for example, cracked easily.

But homebuyers who purchase subsidized apartments tend to remain silent because of the lower prices they paid. Local governments, especially those of second-tier and third-tier cities, also show little concern about examining subsidized housing's quality.

"Stricter quality-control measures are needed," Li said.

(China Daily January 14 2011)

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