China Daily News Global Online News: With the hot property market, soaring housing prices and the thrust of the Olympic Games, Beijing uncompleted residential flats have every reason to "resurrect".
Recently, the opening time of Seven Star Morgan Plaza (formerly known as "Morgan Center") was postponed from August to October, 2007.
This office building and residential project, which is known as "the first unfinished building in Beijing", has a lot of fate. I stopped working for three years because of a dispute with a construction company, but after I got a sales certificate at the end of last year and resumed work, 65 sets were checked out in May this year, accounting for 27.2% of the approved sales sets.
"The opening price in October was around 60,000 yuan, and the area of a single set was from 600 to 700 square meters." Ye Nan, Marketing Department of Seven Star Morgan Square, told reporters that "the model room was completed in September".
This means that its price per square meter is second only to Park Hyatt House in Beijing Yintai Center. According to the data from Beijing Real Estate Transaction Management Network, the average price of 78 apartments in Seven Star Morgan Plaza is 10,471 yuan/square meter, which will increase by 473% in less than one year, which is 71% higher than the pre-sale price of 35,000 yuan/square meter published on the current management network.
The revival of Seven Star Morgan Square is only a typical example of the Beijing Municipal Government’s efforts to eliminate all unfinished buildings in Beijing by 2008 two years ago. However, nearly 50 projects labeled as "unfinished buildings" still have different lives, and an unfinished building attack station is slowly opened with the first anniversary of the countdown to the Olympic Games.
From uncompleted residential flats to luxury houses
At noon on beginning of autumn Day, at No.3 Chaowai Street in Beijing, a construction worker surnamed Huang reminded passers-by to be "careful" from time to time in the scorching sun. "Change a piece of glass, and minor works can be done in a few minutes."
At his side, the glass curtain wall of a building is being broken, and occasionally fragments fall. This is the "frontispiece" of the once unfinished Platinum Palace International Center. "It turned out to be a sales center. Now the building is sold out, and some places need to be repaired. It is estimated that there will be other uses in the future." He told reporters.
"Only unfinished developers, no unfinished projects". Indeed, "unfinished" is not a death sentence for a project. After all, the unfinished building cleared by "directional blasting" is only an individual phenomenon. In the eyes of many people, these "semi-finished products" occupying scarce land resources are pieces of fat.
Platinum Palace International Center is a classic in the case of "resurrection" of uncompleted residential flats. Its predecessor, Jinfei International Apartment, had put aside money due to various problems. Later, after changing the "trader" and the name of the case, the project completed the essential leap from gold to platinum.
It is reported that the first phase of Platinum Palace International Center has been sold out, and the second phase of Block C and E is expected to open in September and October 2007, consisting of two 18-story towers and three 6-story slab buildings. The apartment area is 240 square meters to 320 square meters and 600 square meters, and the estimated average price is more than 20,000 yuan/square meter, which is a high-grade fine decoration.
Compared with the opening price of 13,800 yuan/square meter in 2003, the history of "unfinished" has not adversely affected the appreciation of Platinum Palace International Center.
Buy low and sell high.
The new developer takes over, which is the beginning of the revival of most projects. The injection of new funds is undoubtedly the key to the re-operation of the project, but what attracts real estate developers to bet on these unfinished projects?
In recent years, the Beijing government has tightened its control over land supply. At the same time, with the continuous expansion of the city, the effective land supply in the old city has gradually become almost zero, and the uncompleted residential flats in prime locations have entered the sight of developers.
"uncompleted residential flats can achieve’ buy low and sell high’, although there are certain investment risks. Once successful, the income is much higher than the development of new real estate." A person in charge of a development company that once acquired an unfinished project told the truth.
As a result, the unfinished building began to revive, and strong marketing ability and strong financial strength are the prerequisites for activating the unfinished building.
In July 2002, China No.1 Mall, a famous unfinished project in Beijing, was acquired by Wei Gongding Company.
According to calculation, Wei Gongding Company paid about 400 million yuan for this. In 2003, the first phase of the two buildings reopened, with an average price of 12,000 yuan/square meter, and basically sold out in one year. There is no clear figure on how much the new owner of China No.1 Mall has earned from it. However, the construction area of 180,000 square meters in the first phase is given as a reference.
Fu Bing, executive deputy general manager of China Land Level I Development Network, said: "When the uncompleted residential flats are sold through auction procedures, banks and some creditors are eager to recover their funds, and some developers can auction them with 1/2 or even 1/3 of the investment amount of these properties. As long as the later marketing is proper, investing in" uncompleted residential flats "is more profitable than investing in new properties."
It takes at least two or three years for a normal building to go public from land acquisition, but it doesn’t need to carry out preliminary work such as construction application and foundation laying to take over the unfinished building. Generally, it only takes half a year to a year and tens of millions of yuan of funds, but its return rate may be as high as 150% to 200%.
Because half of the uncompleted residential flats have been put on hold for about 3 years, the seller’s psychological expectation is not very high, and the taker can often win them with lower funds and get higher profits in the later period.
"This is a short, flat and fast shortcut for development enterprises that lack land reserves and want to enter different markets." Zhao Hong, deputy director of the Institute of Economics of the Beijing Academy of Social Sciences, believes that "the investment value of the project itself, the cost of planning, design and transformation, and the relationship with creditors must be clearly considered."
政府推手
从地图上看，北京是一个“井井有条”的城市，如果沿天安门广场中轴线对折，很多交通主干道是重合的。这其中有两个项目也是重合的：国贸中心和公主坟商业大厦。
然而，这一东一西两个长安街沿线的项目却有着完全不同的命运。目前正建设三期的国贸中心已成为北京顶级写字楼的旗舰，而公主坟综合商业大厦自1994年立项以来曾一度被北京市土地储备中心收回，是一个“标准”的烂尾项目。
在政策的推动下，公主坟商业大厦已开始走向复活之路。
公主坟商业大厦由中房集团北京公司以联建的形式与北京市第一商业局合作开发。当时提出的条件是一商局和中房按4.5：5.5的面积分配比例。但随后双方因分配问题产生纠纷，造成工程停工，甚至一度被北京市土地整理储备中心收回。
直至2005年中房集团以招投标的形式重新拿回项目，才开始启动开发。经过北京市政府特批，项目仍以联建的方式由中房和一商局共同开发，面积分配比例被调整为3：7（一商局：中房）。据知情人透露，如果不是政府介入，这样的比例分配很难被接受。
In 2005, the Beijing Municipal Construction Committee, the Municipal Development and Reform Commission, the Municipal Planning Commission and the Municipal Bureau of Land and Resources jointly investigated the unfinished projects in Beijing, and 26 projects were identified as unfinished projects by the municipal government, among which Gongzhufen Commercial Building was one.
According to the regulations, 2005 will be the start year of uncompleted residential flats, and 2006 will be the year of centralized treatment of uncompleted residential flats. In 2008, the uncompleted residential flats in the eight districts of Beijing will be completely cleared up.
At the end of last year, the Municipal Construction Committee announced the Notice on Implementing Several Provisions on Engineering Construction Guarantee, requiring that if the construction project is suspended for more than three months for any reason, it is necessary to submit an agreement between the two parties and a description of the suspension of construction with the official seals of the construction unit, the construction unit and the supervision unit to the municipal or district bidding supervision department.
Guo Wei, vice president of China District of Langxing Investment Consulting Co., Ltd. said: "2008 is the Olympic year, and this measure should ensure that the government’s’ unfinished building cleaning plan’ will be well implemented."
Regarding the government’s intervention in the "restart" of uncompleted residential flats, the relevant person in charge of the Municipal Construction Committee said that the government’s work lies in coordination. They will cooperate with other ministries and developers to carry out carpet investigation and encirclement of the uncompleted residential flats in the city, and coordinate on the basis of listening to the report of the project construction unit, so as to make every uncompleted residential flats come back to life.
"For the measures to eliminate uncompleted residential flats as soon as possible, in addition to coordinating and suggesting that all competent departments speed up the review of various procedures and promote the early resumption of construction of the project, the projects that have stopped working due to insufficient funds will actively assist in financing and equity cooperation; For projects that are really incapable of completing construction, it is recommended that the government take them back and deal with them quickly. " The relevant person in charge of the Municipal Construction Committee said.
In the history of the revival of uncompleted residential flats in Beijing, the rose garden can be described as a "myth".
In May, 2007, the fourth phase of Rose Garden was officially opened. In less than four months, more than half of its 20 villas have been sold, and the last two sets of the third phase were all sold out in July.
Behind the sales performance of the rose garden lies the story of four changes of owners and many real estate predators.
In 1992, the Rose Garden settled in the desolate land of Xiaocai Village, sha he, a suburb of Beijing. Liu Changming didn’t intend to build a villa seriously from the beginning. After the opening of the project, it has not broken ground. As a matter of fact, the first batch of funds for the sale of uncompleted flats in Feida Rose Garden was quickly misappropriated as soon as it was put in place. The game of "White Wolf with Empty Gloves" finally ruined his reputation.
Deng Zhiren, who is known as the "godfather of real estate", took 40% equity of Hong Kong Lidaxing as collateral, raised HK$ 100 million through four companies, and bought a 20,000-square-meter villa in Rose Garden, becoming the general agent for project sales. After Liu Changming’s scandal of misappropriating the house payment was exposed, Deng finally bought the Rose Garden collectively for 80 million Hong Kong dollars.
He soon discovered that the rose garden was only "superficial". All kinds of efforts to no avail, until 1997, 186 villas in the first phase of the Rose Garden were completed and obtained the title certificate. However, Deng had no follow-up funds to follow up. In the end, the godfather of real estate lost all his money.
After that, Deng Zhiren almost gave Lu Cang the rose garden with a debt of 650 million yuan. Liu Cang hopes to make a fortune by speculating on land. However, contrary to expectations, due to unclear legal relations, the rose garden could not be realized. He was unable to face many creditors because of insufficient funds, and the rose garden became a "dead garden". In July 1998, the court declared the Rose Garden bankrupt.
As the largest creditor, Hesen Group won the Rose Garden for 398 million yuan. The boss of the group, Liang Xisen, decided on the reconstruction plan of the Rose Garden: first, invest money to complete the rectification of the Rose Garden and the main project of 100 villas in the second phase in the shortest time, and then formally put the Rose Garden on the market; Then, the third and fourth follow-up projects will be developed, and it will take four years to complete the community development and complete supporting facilities construction of the whole rose garden.
After the completion of the rectification work, in 2001, the third phase of the Rose Garden was unveiled, and then it was on the right track.
Rose Garden is just a microcosm of many unfinished buildings in Beijing. It has "resurrected", and there are still many projects that are still unfinished and heading for unfinished. What will their future look like?
(Source: China Real Estate News)
