15 high-rise residential buildings in Kunming, Yunnan, China, which had been unfinished for 7 years, were demolished by blasting last Friday (27th). The whole process took only about 45 seconds. According to reports, this one-time blasting to demolish 15 high-rise buildings is the first time in Yunnan and rare in China.
The blasting involved 15 high-rise residential buildings in the second phase of Liyang Star City, Kunming City, China. The project was unfinished due to a break in the developer’s capital chain. At the end of last year, the local government restarted the reconstruction of the project through the listing and transfer of the Yunnan Provincial Property Rights Exchange. Regarding one of the buildings that did not fall down during the blasting, some experts explained that this phenomenon is that the building body is not fully disintegrated and does not require a second blasting.
The second phase of Liyang Star City project started construction in 2011. The original developer was Kunming Xishan Land and Housing Development and Operation (Group) Co., Ltd. (hereinafter referred to as Kunming Xifang). The project covers an area of about 340 acres. It is planned to have residential, commercial and office buildings. It is divided into 4 plots for development and construction, namely A1, A2, A3, and A4. Among them, the A1 and A3 plots are commercial, and the A2 and A4 plots are residential, with a total construction area of approximately 630,000 square meters. Except for the 4 high-rise buildings (including some relocation houses) in the A2 plot, which were delivered in 2015, the remaining 15 high-rise buildings in the A1, A3, and A4 plots were closed at the end of 2013, and many buildings have been built with 20 floors.
According to reports, in 2012, Kunming Xifang’s capital chain broke, Yunxi Real Estate became the controlling shareholder of Kunming Xifang Jinyu Real Estate, and the second phase of Liyang Star City was renamed “Yunxi·Golden Land”; in July 2013, “Yunxi· “Gemdale” began to shut down. In 2014, the A2 plot of “Yunxi·Golden Land” was not handed over as planned due to the shutdown of the project, and the handing over did not start until March 2015. Except for the 4 buildings on the A2 parcel that have been delivered, the remaining 3 parcels of the project have been suspended since 2014.
In 2017, Yunxi Group withdrew from the real estate industry. After Yunnan Panheng Real Estate took over, several suspended projects under Yunxi Real Estate did not take any substantive actions. In September last year, Yunxi Real Estate planned to transfer its 100% equity in Kunming Xifang, a “Yunxi·Golden Land” project company, and its debts of 23.068 million yuan (RMB, the same below), and the auction was finally passed; in November of the same year, the real estate of Yunxi was listed for transfer for the second time, and the transfer reserve price fell to approximately 979 million yuan. As of January 6 this year, Yunnan Honghe Real Estate Co., Ltd. acquired 100% of the equity and creditor rights of Kunming Xifang at a reserve price of 979 million yuan.
According to data, Yunnan Honghe Real Estate was established in July last year, and its major shareholder is Zhejiang Yicheng Real Estate Co., Ltd. West Real Estate is a wholly-owned subsidiary of Honghe Real Estate. In order to maintain the continuity of project development, Liyang Star City Phase II will continue to use West Real Estate as the main development entity. On June 22 this year, the Kunming Municipal Bureau of Natural Resources and Planning issued the “Pre-approval Publicity of the Planning Permit for the Construction Project of Phase II of Liyang Star City A4 in Kunming City”. According to the announcement, the second phase of Liyang Star City will be changed from the original high-rise residential building to a 6-12-story bungalow and a small high-rise building.
At the end of last year, Kunming Xifang conducted market research on Liyang Star City A1, A3, and A4 plots and real estate projects in the western area of Kunming. There are two reasons for choosing blasting instead of continuing construction on the original basis. One is that the existing units of the three plots can no longer meet the current market demand, including the original design of the largest area of about 600 square meters, and the smallest of only 45 square meters, which does not match the market demand; the north-south is transparent and ventilated. Good daylighting is the basic requirement of modern living. The original design cannot meet the comfort needs of modern people; the panel house in the horizontal hall of the living room is the best choice for living at present, and the original design tower house cannot meet the requirements of modern people.
In addition to the apartment size problem, due to the long unfinished time of the project, rainwater enters the basement of the unfinished project during the rainy season, and the foundation is soaked in water for a long time. The appearance of the building also has some quality defects and hidden dangers. After repeated demonstration and evaluation, demolition and reconstruction is the only option to ensure the quality and safety of the project.