Why People Live in Unfinished Buildings (Rotten Ended Buildings) in China?

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In China, the phenomenon of rotten-ended buildings has been widespread for many years and is related to the reform of China's housing system.
On July 3, 1998, the Chinese State Council issued The Notice on Further Reform of the Urban Housing System and Speeding up Housing Development. It clarified the direction of marketization, monetization, and commercialization reform of urban housing and initiated a thorough reform of the housing system. It ended the "physical distribution of housing" and implemented monetization of housing allocation, creating a housing supply system based on market supply.
Since then, the real estate sector has become one of the key drivers of China's rapid economic growth.
Zhang Dawei, the chief analyst of Centaline Property, said that the various quality and delivery problems in the real estate market are basically all related to the pre-sale system.
The presale ratio of houses in major cities in China is generally above 80%, and in some cities, it is even above 90%.
This presale system allows small businesses with little capital strength to become real estate developers. As long as they pay the government for the land and have a little money to start the project, they can start collecting money from the pre-sales, and at the same time they can take out a loan for the project.
For the Chinese Communist government, as long as they get the money from land sales, it’s not a big concern as to whether the project will ultimately be completed or not. So in the construction of real estate projects, there are situations where developers go bankrupt or simply run away with the money, leaving the projects to rot. In fact, no matter the reason for the real estate project failures, the loss ultimately falls on the buyer (general public) in the end.
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