Dalian's Most Notorious Unfinished Building "Central Huafu" Rivals "Chang'an No.8"

2013-08-09 670 0人评论
       On August 4, 2013, the surface temperature in Dalian exceeded 29 degrees Celsius, unusually muggy. Even avoiding the hottest hours, the entire construction site felt like a furnace. Compared with other bustling project sites, the "Central Huafu" project site, originally developed by Dalian Changyun Real Estate Development Co., Ltd., was deserted. It is reported that this project has been suspended for 6 years, becoming a famous unfinished building in Dalian. Whether in terms of location or time, it is comparable to Beijing's "Chang'an No.8".

  According to nearby residents, due to a dispute between the developer and the builder, the project still owes some migrant workers their wages.

  Origin: Why did the high-quality residential project "Central Huafu" become Dalian's "Chang'an No.8"?

  On September 14, 2005, Chifeng Construction (Group) Co., Ltd. Dalian Second Branch, as the builder, signed an advance funding development contract with Dalian Changyun Real Estate Development Co., Ltd., the developer, to become the builder of Changyun's "Central Huafu" project. According to the contract, Chifeng Construction (Group) Co., Ltd. Dalian Second Branch advanced 6.7 million yuan for demolition compensation. Both parties agreed that Dalian Changyun Real Estate Development Co., Ltd. would divide 9,000 square meters of housing by floor area to Chifeng Construction (Group) Co., Ltd. Dalian Second Branch.

  Unexpectedly, just 9 days after the start of construction, the project was forced to stop multiple times due to incomplete development procedures, and did not resume until March 15, 2007. This seemed to foreshadow the troubled fate of the "Central Huafu" project, which remains unfinished to this day, becoming a veritable most notorious unfinished building, echoing Beijing's "Chang'an No.8".

  Development: Rising Land Prices Challenge Contractual Legal Validity

  On June 28, 2007, more than 200 workers working intensively at the "Central Huafu" project site were suddenly "escorted" out by unidentified persons, causing the project to stop. According to workers at the time, this was related to a contract dispute between the developer and the builder. Ultimately, the Dalian Intermediate Court confirmed that Chifeng Construction (Group) Co., Ltd. Dalian Second Branch was awarded 46 units including semi-basements, public buildings, and residences, totaling 9,031.27 square meters.

  In the past decade, housing prices in China's first-tier cities have soared, and despite repeated government regulatory measures, the momentum has not diminished. As the water rises, the boat rises, and for developers, land acquisition prices are also climbing. To ensure liquidity and reduce bank loans, developers often pay builders by allocating housing area. Therefore, for projects with long construction cycles, economic disputes between developers and builders are common due to ever-changing housing prices.

  Escalation: Project Suspended, Loan Default, Developer's Boss Mysteriously Disappears

  To complete the "Central Huafu" residential project, in July 2008, Dalian Changyun Real Estate Development Co., Ltd. and Chifeng Construction (Group) Co., Ltd. Dalian Second Branch discussed mortgaging the entire Central Huafu project to the Malan Square Branch of Bank of Dalian for a loan of 126 million yuan. The bank promised that 70% of the proceeds from each housing sale would be used to repay the bank loan, and 30% would be used by Dalian Changyun Real Estate Development Co., Ltd. and Chifeng Construction (Group) Co., Ltd. Dalian Second Branch. For this, Chifeng Construction (Group) Co., Ltd. Dalian Second Branch agreed to waive its priority right of acceptance.

  However, from July 2008 to August 2009, Dalian Changyun Real Estate Development Co., Ltd. did not fulfill the repayment plan as agreed, and its legal representative absconded with the funds and remains missing to this day.

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