Executive Summary: Key Takeaways from the Baishizhou Delivery
– The first phase of Shenzhen’s massive Baishizhou urban renewal project, featuring residential towers up to 74 stories, has officially commenced delivery after delays, marking a critical milestone for developer Lvjing China Real Estate (绿景中国地产).
– Delivery occurs against a backdrop of significant owner dissatisfaction, centered on unmet promises regarding a flagship school and concerns over construction quality, particularly in the underground garage areas.
– Lvjing Group faces acute financial pressure, with reported liquidity constraints and high debt levels, raising questions about its ability to fund subsequent project phases without external partnership or state-backed intervention.
– Industry experts suggest that the project’s future development may necessitate involvement from central state-owned enterprises or local government investment platforms, given the scale and complexity of the urban renewal.
– This Baishizhou project delivery episode serves as a microcosm of the broader challenges facing China’s property sector, where developer credibility, regulatory oversight, and market confidence are increasingly intertwined.
A Watershed Moment Amidst Escalating Tensions
In the heart of Shenzhen’s Nanshan District, a long-awaited chapter has unfolded with the Baishizhou project delivery finally beginning. This event is not merely a procedural handover but a litmus test for China’s urban renewal ambitions and the financial health of its private developers. For global investors and market watchers, the commencement of delivery for this 74-story colossus—Shenzhen’s largest urban renewal initiative—signals both progress and profound peril. The project, developed by Lvjing China Real Estate, was heralded as a transformative venture for the city’s skyline and living standards. Yet, its path to completion has been riddled with delays, disputed claims, and a developer grappling with a precarious balance sheet. As keys are handed over, the Baishizhou project delivery reveals deeper fissures in a sector still reeling from liquidity crises and eroding buyer trust.
Announcement and Official Timeline
On February 4, Lvjing China Real Estate (绿景中国地产) announced via the Hong Kong Stock Exchange that the main construction work for the first phase of its Baishizhou urban renewal project—marketed as Lvjing Baishizhou Jingting—had been completed, with government acceptance procedures finalized. The developer stated it had formally initiated the delivery process for residential units. According to sales contracts reviewed by owners, the original delivery date was set for January 15, 2026. However, the developer cited a one-month grace period stipulated in contracts, arguing that delivery by February 14 would not constitute a breach. This contractual nuance, while legally noted, has done little to assuage buyer anxieties, setting the stage for the controversies that followed the Baishizhou project delivery initiation.
Immediate Owner Reactions and Core Grievances
From the outset, owner representatives have voiced frustration that extends beyond the delayed timeline. A primary concern revolves around educational配套设施 (supporting facilities) promises. During sales campaigns, marketing materials prominently featured commitments to a nine-year compulsory education school affiliated with the prestigious Nanshan Foreign Language School, with an advertised opening date of September 2026. Owner representative Mr. Wu (吴先生) stated, ‘A significant portion of owners purchased based on this school promise.’ However, recent information indicates the school land plot has not yet commenced demolition, with construction now projected for 2027 and completion by 2029. The disconnect between promotional assurances and on-ground reality has become a focal point of dispute, casting a shadow over the Baishizhou project delivery.
Financial Precariousness: The Developer’s Balancing Act
The successful execution of the Baishizhou project delivery is inextricably linked to the financial viability of Lvjing Group. For over a decade, the Shenzhen-based developer has invested heavily in this urban renewal endeavor, effectively staking its future on its outcome. Data from Lvjing China Real Estate’s 2025 interim report paints a concerning picture: current liabilities stood at RMB 60.57 billion, with new borrowings of RMB 7.703 billion in the first half. Debt due within one year amounted to approximately RMB 2.914 billion, while cash and bank balances were a mere RMB 342.5 million, alongside restricted deposits of about RMB 1.449 billion. This liquidity squeeze underscores the immense pressure on the company to generate cash flow from sales and deliveries. The Baishizhou project, with its total developable area of 3.58 million square meters and estimated sales value of RMB 220 billion, represents both a potential lifeline and a monumental burden.