Summary of Key Points
Chengdu Diamond Plaza was once highly anticipated to serve one-fourth of the main urban area and attract a consumer base of 2 million people. However, just 11 years after its opening, it has declined from a thriving destination to a deserted and dilapidated space. Many shops are vacant, facilities are outdated (with leaks and malfunctioning elevators), and foot traffic is scarce, with only a few shops on the ground floors and the cinema barely surviving. The reasons for this decline include multiple changes in ownership, poor management (by non-professional teams), and difficulties in asset disposal (with auctions failing to attract buyers). Today, the plaza relies on small businesses on the ground floor and exorbitant parking fees to sustain itself.
Current Situation: What Was Once a “Diamond” Has Become a “Ghost City”
The current state of Diamond Plaza can be described as an urban version of “Silent Hill”: the fourth floor lacks air conditioning, making the air hot and humid; the escalators are out of service with signs warning “Fragile, do not lean on”; most of the shops on the second, third, and fourth floors are closed, with only the fish restaurant remaining, its foam boxes filled with stagnant water (with no sign of customers or fish); the service desk is covered in dust, and merchant application forms date back to 2018. Occasionally, one can see people wandering around—bicyclists, men lying in massage chairs watching videos, and uniformed staff playing games, resembling “NPCs” in a video game. The only active areas are the fast-food restaurant on the ground floor, the billiard hall on the basement floor, and the cinema on the fourth floor, which only operate during meal times and movie showtimes.
Operation: A Hot Potato That No One Wants to Handle
Diamond Plaza had several inherent flaws from the start:
- Vanke was merely a construction partner, not responsible for operation: Although the name includes “Vanke,” the company only built the building and did not participate in leasing or management, acting more like a contractor.
- Multiple changes in ownership by those with no business experience: Before opening, the rights were transferred to a company under Sirui Real Estate, which later faced operational issues; a year later, they were sold to Delman Investment, which went bankrupt in 2023. Delman’s related companies are in the fiber optics and networking industry and have no knowledge of commercial management.
- Divided ownership leading to internal strife: The 50,000-square-meter mall is split between two owners, each unwilling to invest in the other’s area, to the point where they don’t even bother to repair the escalators.
Signs of Decline: Problems Were Present Even Before Opening
Some suggest that the departure of Hema and the students from the University of Electronic Science and Technology of China were the catalysts, but there were earlier warning signs:
- The leasing manager fled before opening: Merchants recall that the manager warned them not to invest, indicating internal awareness of the problems.
- Overly ambitious positioning that failed to attract the target audience: Despite claiming to serve 2 million consumers, the nearby university students prefer the food streets on Jianshe Road. Hema’s departure was just the final straw, not the root cause.
Asset Disposal: No Buyers Even at a Discount
In 2021, the second and third floors of Diamond Plaza were auctioned as distressed assets for 200 million yuan; in 2022, they were sold on JD.com three times at a 56% discount (about 112 million yuan) but still failed to find a buyer. The reasons for this include the lack of foot traffic, high re-opening costs, unresolved property rights issues, and fierce competition from nearby businesses.
Survival: Hanging by a Thread on Ground-Floor Shops and Exorbitant Parking Fees
The plaza’s survival currently depends on two factors:
- Essential businesses on the ground floor: Mobile companies, pharmacies, Ahold, and Starbucks attract residents and generate some income.
- High parking fees: The author paid 42 yuan for parking, which may be the mall’s main source of revenue. Since few people visit, any income is welcome.
However, whether these measures will be enough to sustain the plaza is uncertain. With such a high vacancy rate and no new businesses entering, it is likely to be phased out by the market.
Conclusion
The decline of Diamond Plaza was not a sudden event but a gradual process of self-destruction, stemming from poor management, incorrect positioning, and difficulties in asset disposal. Its story serves as a reminder that impressive slogans alone are not enough; professional operation and clear property rights are crucial for the success of commercial properties.