This happened in Kunming City, near Western Hills, on August 27. Featured as one of the biggest residential demolition sites in China.
Watch the dramatic footage here:
It only took 45 seconds to erase seven years of construction work.
Apparently, the developer of Sunshine City II (Liyang Star City) ran out of money. Empty buildings have been left unfinished for years. There are more than 92 unfinished real estate projects in Kunming similar to this one.
The most reasonable course of action, in my humble opinion, is for other real estate developers to negotiate a takeover of exhausted residential complexes. The demolition of Phase II of Liyang Star City is a waste of resources to say the least.
Unfinished builds seem to be a running theme among debt-ridden developers as global investors wait for the fallout from Evergrande to unfold.
Not so long ago, President Xi said that houses are for life, not for speculation. This mantra aligns with Beijing’s efforts to distribute wealth and reduce the financial burdens of young families vying to start a family. Meanwhile, debt-fueled home development loans have been brought under control.
In light of the regulatory crackdown on bad debt and subprime loans, hitting the uncertainties of the pandemic, property prices in Kunming and Yunnan as a whole have been significantly affected.
The silver lining is the buying opportunity for those looking to own a home.