Property investing in China – beware the leaning apartment buildings

China may not be top of everyone’s list as a property investment destination, and after seeing these two apartment buildings lean so far towards each other that they are now touching, I will certainly be a little more cautious as should anyone considering property investing in China.

The 2 buildings concerned are  in “Xiao-Yuan Chun-Tian, a  community in Chengdu city. After 5 months, property owners are still fighting for their legal rights. It continues to be an uphill battle. In March, commercial community, De Xin Yuan started construction at 3 buildings near Xiao Yuan community. After a few months, roads in Xiao Yuan community began showing cracks. De Xin Yuan’s developer acknowledged their construction was responsible for the cracks.

Zhang Lun, Shufu Property Developer GM said, “Construction of a foundation and continued heavy rains, caused cracks in the enclosing wall, roads and flower bed in neighboring community. We are partly responsible for it.”

2 apartment buildings leaning together

Damage increased in mid July, when two days of torrential rains caused walls in some apartments to crack. After discussions between the owner’s delegation and the property developer, the developer agreed to halt further construction until the negotiations concluded. The developer re-filled a foundation to ensure safety of the buildings.

Zhang Lun said, “The design of these two buildings looks like an upside down V. The two buildings are almost touching each other.”

Apartment owner Fan Xiwen said, “It’s impossible. If the two buildings were connected, all of the owners could not seal their balconies. It’s common sense. And if the roads have cracks, no one would buy apartments in this community.”

The developer and property owners have not reached an agreement. The developer provided a choice between three safety appraising departments. But the appraisal left owners disappointed.

Deng Zhengyu from China Southwest CEO-technical Investment Inst.,said, “The Xiao Yuan community is located in a soil swelling zone. The developer should have used drainage equipment during construction. But inclinations of the two buildings are up to national regulation standards. The Xiao Yuan community meets safety standards.”

Authorities believe the inclinations of the buildings and road are normal. National regulation states that the inclination of a building can not exceed 0.4 percent. But the inclination of the two buildings is 0.2 percent.

Apartment owner Fan Xiwen said, “They think so far there is no danger. If the building shows cracks, the only thing you can do is repair it. We can’t accept that.”

Facing questions from property owners, government departments can do nothing.

Bu Xuedong of Chengdu Construction Commission said, “The government’s only function is supervision. And there are no regulations saying government departments should check the appraisal.”

Collapsed buildings in Shanghai and slanting buildings in Chengdu, has caused property owners to worry about quality and safety. Not to put too fine a point on it, Chinese building quality standards are almost nonexistent, and neither the government, nor the developers are interested in dealing with the problem. There have been a number of complaints recently, and owners have sought media attention and lawsuits have been bought – all have lost as the legal system is controlled by one of the defendants – the government inc.