Work Slows on Tianjin $10 B Manhattan Project

Work on Tianjin's infamous Manhattan project, a growing ghost city in the Binhai area, has slowed.

Background: Tianjin Rebuilds Manhattan in Binhai; Has 90% Empty Ghost City in Baodi

iFeng: “中国曼哈顿”投资超600亿 被指施工缓慢
"China Times" reporter recently visited when Xiangluowan business district to see there is still a lot of projects not yet completed, projects that have been completed are empty or have very high vacancy rates.

The latest news from the central business district of Binhai New Area Administrative Committee, as of the end of last year, there are 17 regional Xiangluowan building 13 projects completed this year there are eight buildings completed.

This means that, at the end of last year, only about one-third of project completion, the proportion of buildings completed only 35.4 percent. Even eight buildings be completed this year, the number of buildings completed in just over half also.

...Binhai New Area Central Business Zone official statistics, Sinosteel International Plaza building body mass of nearly 400,000 square meters, height of 358 meters, with a total investment of 4 billion yuan. The project was formally signed in April 2006 settled Xiangluowan scheduled for completion by the end of 2014, but delayed for eight years, currently only carried out earthwork excavation.

And Xiangluowan Moon Island project construction volume also more than 300,000 square meters, with a total investment of 1.8 billion yuan, is also just took earthwork excavation, but can not see the sign at the construction site.
These companies got a great deal on the land: almost free.

In addition, according to published reports, in order to attract investment, then the Binhai New Area will be used to support land transfer all projects or project support, which means that investment companies to buy land costs almost zero.

Nevertheless, the huge investment program has suffered setbacks in the implementation.

...With Sinosteel International Plaza project, for example, according to media reports, at the time of project planning Xiangluowan Tianjin Sino Steel Group Investment, China Steel International Ltd, the Diaoyutai State Guesthouse, the United States MGM MIRAGE joint development, but due to financial, steel high-level personnel changes and other reasons, the Diaoyutai State Guesthouse with the US MGM Group has pulled out of the project.
The rest of Tianjin is also adding a lot of office space:
The region's developers said on condition of anonymity, Xiangluowan business district started 39 projects, most of which are local provincial and municipal governments or state-owned investment and development, and are the main high-end office, hotel or commercial complex, in fact, office space already is already in surplus.

According to DTZ report released in 2015, Tianjin Grade A office market will have a significant number of projects completed in order to enter the market, with the launch of new projects, the market vacancy rate is bound to rise.

Dingzu Yu, CEO of E-House China also believes that the commercial office products to be careful, he said the annual meeting planners in the Seventh China Real Estate "is currently building supply too much, especially in the new districts of second- and third-tier cities."

宋清辉 told reporters that, in the long term, Tianjin Free Trade Zone Xiangluowan favorable business district, will bring its passenger and cargo traffic and popularity, but the limited short-term boost.
Those new districts are part of the urbanization and development plans in many cities. In many cases these are popular new areas of commerce, but in other cases, they are ghost cities. I covered it here last year: Urbanization Plans: 90% of Prefecture Level Cities in China Are Planning New Districts; Plans Would Increase Urban Area by 780%; Suitable for 3.4 Billion People

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