With supertall skyscraper stalled in Wuhan, Greenland project suggests tougher times in China (update: re-started)
Update re the Wuhan project: "The project resumed on December 6, though still behind its 2016 original completion target, Greenland said after negotiating the payments," the South China Morning Post reported 12/10/19. Asia Times reported the tower will be 500 meters, rather than the original 636 meters.
China’s skyscraper boom comes down to earth, the Financial Times reported 11/21/19. The prime example: Greenland Group:
An unnamed Greenland official did say that construction in Wuhan would resume. The Financial Times noted that the Greenland strategy of selling expensive apartments as part of mega-developments is under strain, as the residential market has contracted, given a slowing economy and limits on "a crackdown on housing speculation."
“There is a fundamental problem with Greenland’s business model,” said [Li Guozheng, an analyst at China Index Academy, a property consultancy]. “It doesn’t take into account an economic downturn.”
Any impact in Brooklyn?
Would that have any ripple effects in Brooklyn? That's not clear, and maybe it won't be clear until and unless it's inevitable.
Greenland is a large company, with lots of resources and many divisions. That said, it has become more cautious with its Los Angeles project, Metropolis.
Still, as part of Greenland Forest City Partners, it's moving ahead with condemnation at Site 5 of Atlantic Yards/Pacific Park, and planning to start an expensive platform over the Vanderbilt Yard.
But what is clear is that Greenland doesn't necessarily have as deep pockets and as sunny an outlook as it once had.
China’s skyscraper boom comes down to earth, the Financial Times reported 11/21/19. The prime example: Greenland Group:
In an October 30 letter seen by the Financial Times, China Construction Third Engineering Bureau Co said it would halt construction on a 475m-high [1558 feet] skyscraper in the central city of Wuhan. It said Greenland Group, one of the nation’s largest property companies, had failed to make “a significant” project payment.The Financial Times found more than a dozen so-called supertall skyscrapers, above 1,000 feet, either delayed or postponed, typical signs of what an analyst called an economic recession.
An unnamed Greenland official did say that construction in Wuhan would resume. The Financial Times noted that the Greenland strategy of selling expensive apartments as part of mega-developments is under strain, as the residential market has contracted, given a slowing economy and limits on "a crackdown on housing speculation."
“There is a fundamental problem with Greenland’s business model,” said [Li Guozheng, an analyst at China Index Academy, a property consultancy]. “It doesn’t take into account an economic downturn.”
Any impact in Brooklyn?
Would that have any ripple effects in Brooklyn? That's not clear, and maybe it won't be clear until and unless it's inevitable.
Greenland is a large company, with lots of resources and many divisions. That said, it has become more cautious with its Los Angeles project, Metropolis.
Still, as part of Greenland Forest City Partners, it's moving ahead with condemnation at Site 5 of Atlantic Yards/Pacific Park, and planning to start an expensive platform over the Vanderbilt Yard.
But what is clear is that Greenland doesn't necessarily have as deep pockets and as sunny an outlook as it once had.
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