Symbol of China’s real estate recession…The shocking background of the 1 trillion yen, 117-story “skyscraper” in Tianjin, China: construction halted due to financial difficulties
More than 1 trillion yen was invested in the construction of the building, which was scheduled for completion in 2006. ......
The presence of the building overwhelms its surroundings, and its height gives the illusion of reaching to the sky.
The 117-story, 597-meter-high skyscraper is the “Kogin Finance 117” in the suburbs of Tianjin in eastern China, but it has the unfortunate nickname of “the tallest unfinished building in the world. Journalist Kota Takaguchi, who visited the site in May of this year, tells us, “It is said to be still under construction.
The building is said to be still under construction, but there is no sign of any workers or heavy machinery, and there is no sign of any resumption of construction. Weeds have grown up in places and the rebar is bare, so it looks like a ruin.
Construction of Kogin Finance 117 began in 2008 and was scheduled to be completed in 2006 as a complex of stores and offices. However, due to the developer’s financial difficulties, construction was halted several years ago. The construction cost so far is said to be more than 1 trillion yen. Mr. Takaguchi continues.
The site is located on an isolated island about 30 minutes by car from the center of Tianjin. There are no notable facilities around, and I wondered who would set up an office here.
The reason for this is said to be President Xi Jinping’s “misadministration.
In an attempt to relieve the concentration of population in large cities, Mr. Xi has built new towns and office districts called “new cities” in the suburbs and rural areas. When the economy was on the upswing, people fought ahead and borrowed money to buy them for investment and other purposes. However, the new COVID-19 crisis and the tightening of regulations by the authorities, who were wary of a bubble, quickly cooled the enthusiasm. People were reluctant to buy, and real estate companies, in financial difficulty, had no choice but to halt construction,” says Takaguchi.
(Mr. Takaguchi) The Gao Bank’s financial crisis, which continues to this day, is a symbol of the real estate recession that China is facing.
From the August 4, 2023 issue of FRIDAY
PHOTO： Abaca/Afro
