Chinese buyer loses 34th-floor flat in 32-storey building, no compensation
A man paid for a 34th-floor unit in a building that only reached 32 floors.
A Chinese man surnamed Shen from Shaanxi province purchased a new-build flat on the 34th floor of a residential building near Xi'an in 2013. The 90-square-metre unit cost 2,646 yuan per square metre—about one-third of the average housing price—because the compound was built on collectively owned rural land, granting it only limited property rights. This grey-market housing is illegal but commonly sold at steep discounts. Shen moved in and lived there for four years before discovering the building had only 32 floors, making his 34th-floor apartment non-existent in the legal registry.
Despite the developer's fraud, Shen received no compensation. The case is now mired in legal proceedings, with Shen left propertyless and unable to recover his investment. The incident underscores the dangers of buying limited-property-rights housing in China, where buyers assume significant legal and financial risks for a chance at affordable homes. Authorities have not intervened, leaving Shen and others like him without recourse.
- Shen bought a 34th-floor flat at 2,646 yuan/sq m, one-third of market price, in 2013.
- The building only had 32 floors; Shen discovered this four years after purchase.
- He received no compensation and is now involved in a legal dispute with the developer.
Why It Matters
Highlights the legal and financial risks of China's grey-market housing, leaving buyers vulnerable to fraud with no protection.