(Yicai) Dec. 2 -- Chinese lenders have accelerated the disposal of homes they took over from debt defaults through e-commerce auction platforms, with starting prices significantly lower than market value. Despite that, the properties remain mostly unsold.

In the Financial Assets section of JD.Com's asset trading platform, there are more than 9,000 properties owned by banks being auctioned for a second time, reflecting that the already low initial starting prices set by banks failed to attract buyers.

For example, Ningxia Yellow River Rural Commercial Bank directly listed a house in Yinchuan for CNY620,000 (USD87,610) last month, but the auction failed to attract buyers. The lender listed the property again at a starting price of CNY558,600, but no bidders have registered so far.

Although the transaction risks associated with banks' direct property sales are much lower than those of foreclosed properties, there are still some risks for buyers, which is suppressing market interest, Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, told Yicai.

"Whether it is a directly supplied property published on the bank's official website or listed on an asset trading platform, buyers need to carefully examine all information, including any potential restrictions on asset rights, or whether there are ownership or legal disputes," Li explained, adding that this type of property may also carry the risk of difficulties in vacating the premises after the transaction.

For example, Guangdong Nanao Rural Commercial Bank is auctioning a 132.7-square-meter house for only CNY161,000. Yicai learned from the lender's staff that the property cannot undergo the transfer of the ownership certificate at the moment, and there are retired people occupy it. This means that after winning the auction, the buyer will need to negotiate the relocation of the actual occupants themselves.

Other reasons why these houses auctioned by banks are hard to sell include remote locations, aging buildings, and poor conditions. Yicai observed on JD.Com's asset trading platform that most of these properties are located in remote provinces, such as Inner Mongolia Autonomous Region and Gansu.

Meanwhile, those in economically developed provinces fail to sell mainly because they are old. For example, a property directly auctioned by Shanwei Rural Commercial Bank in Shanwei, Guangdong province, has received no applications so far, partly because the building is over 30 years old.

Editors: Tang Shihua, Futura Costaglione