A Luxury Developer’s Stumble Shows Rising Default Risks in China
- Tahoe is the first major homebuilder to default in five years
- Plan to sell homes at a premium is backfiring amid virus slump
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Paying top dollar for land when money’s cheap and then selling apartments at a premium seems like a viable business model. Until a global pandemic brings both housing and capital markets to a standstill. China’s developers are learning this the hard way.