Weird little quirk about Chinese housing law, asked a Chinese friend and they said there's usually a house or two per city like this. Usually they do get demolished by the time construction is done but construction companies really hate haggling for a price and the residents can just sit there until the construction company is fed up and pays out a big sum.
Which is funny since if that scenario happens in the US (which is very rare as it would likely be 'sorted out' long beforehand), the construction company/developer will more often than not just run to city when they get fed up and next thing you know the holdout is being served papers for eminent domain.
Never new what these were called. My Grandpa worked for a joint venture in China and said there was the one old lady who wouldn't sell and the just built the factory around her house.