Xian Subway Development Unprofitable

Xian tried to make the subway a profitable endeavor by combining it with property development along the subway line. It hasn't worked.
In fact, as a second-tier cities, Xi'an has tried through the development of land, "Metro + property development" mode, to achieve self-financing of subway operation and sustainable development. But the status quo is that, on the one hand, Xi'an subway obtain multiple high-quality land was relatively slow to develop, most land in the early stages or not started, some projects from the first project to take place for over five years. On the other hand, it has built subway investment property is facing difficulties, difficulties and low profitability.

...Statistics show that Xi'an subway total investments total 105.826 billion yuan, and Xi'an in 2014 only had 101.956 billion yuan of fiscal revenue.

Where will the 100 billion yuan come from? During 2010, when he was the Xi'an Municipal Government counselors, deputy director of the Xi'an Subway Joe Zheng said: "subway operator is certainly a loss, and this loss depends on the property to fill."

...In addition, in order to alleviate the shortage of funds, this year May 21, Shaanxi Province in the first batch of 60 released centralized PPP demonstration projects which will be a total investment of 17.8 billion yuan in Xi'an subway line projects into a project which is planned to attract community capital of 3.6 billion yuan.

But the "China Business" the reporter was informed that the PPP project financing Xi'an subway less than two months after the announcement was "shelved."

...However, the reporter interviewed found that commercial development along Xi'an metro are not optimistic, many stalls and stores and almost nobody cares.

"Rents are reduced to 800 yuan / months." Xi'an Metro Line 2 subway a sale of children's clothing shop owner frustration that business is very quiet, "you look around these empty shops are not the renewal, and the transfer does not go out , it closed. "

"Xi'an has not been particularly good subway business." Deputy Secretary-General of Commercial Real Estate Real Estate Research Center of Fudan University committee Xia Qiang that Canton compared to the north, a low level of business forms in Xi'an, only part of the region rely on its own business atmosphere, and the formation of good interaction subway.

Even in the heart of Xi'an hamlet business district, following the influx of exchange BUY closed shop, and the subway station is also connected to the Golden Eagle Department Store 2014 dismantling.

Insiders said that in the "Metro + estate" model, the government along with land and property development rights as the allocation of resources, instead of the original financial investment, real estate development income due along with a certain lag and uncertainty.

Sina: 西安地铁沿线商业开发盈利艰难

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