China skyscraper plans teeter as new height rules further complicate high-concept projects for indebted developers
- The country’s top planning agency will no longer approve buildings taller than 500 metres, and will strictly limit those above 250 metres
- Cash-strapped developers may have to re-do plans or even sell partially built projects at a loss
Plans for a new generation of skyscrapers that would soar above the skylines of Chinese cities may come back down to earth thanks to a new government-imposed height limit that complicates such projects for developers already struggling to endure a debt crisis.
The situation may force cash-strapped developers to literally go back to the drawing board on some buildings, or sell partially built projects at huge discounts, further weighing on their liquidity.
New buildings taller than 500 metres (1,640 feet) will no longer be approved, while towers exceeding 250 metres will be strictly limited, according to a document issued on July 12 by the National Development and Reform Commission, the country’s top planning agency. The commission also said structures taller than 100 metres must strictly match the scale and the fire-rescue capacity of their locations.
“It is definitely bad news for the developers who have skyscrapers under development, particularly those distressed ones,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. “Without the favourable policies, these skyscrapers could become hot potatoes.”
Zhongnan Group, for example, slashed the height of Zhongnan Center in eastern Jiangsu Province’s Suzhou from its original 729 metres to 499.2 metres to meet the requirement, which was first announced a year ago.
