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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
The Yinyin Lake Courtyard in Wuhan.
The Yinyin Lake Courtyard in Wuhan.Source: Tahoe Group Co.

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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.