The construction site entrance is tightly closed, and there is a large amount of water accumulated in the deep foundation pit. Rongchuang A-one, which was once planned to be the “tallest building in Chongqing,” failed to sell at auction.

Summary of Key Points

The Rongchuang A-one project was intended to become Chongqing's tallest building at 470 meters, marking Rongchuang's first super-tall complex with a total investment of approximately 20 billion yuan. However, due to funding issues, construction ceased in July 2022, and the project is now up for auction (with a starting bid of 2.002 billion yuan and an estimated value at 80% of that amount). The auction was ultimately unsuccessful as no bidder emerged. This case highlights the dual challenges of funding and operational difficulties faced by super-tall landmark projects during a period of adjustment in the real estate industry.

I. From Chongqing's Former Tallest Building to a Failed Auction Item

Journalists' on-site investigations revealed that the project site was locked, with promotional signs on the barriers covered in dust. Although the cranes and bulldozers were still present, the foundation pit was filled with water, and the soil piles were overgrown with grass, indicating that construction had been halted for a long time. Despite more than 5,000 people attending the auction, no bids were made—the reason is simple: the entry barriers were too high. The starting bid of 2 billion yuan required a deposit of 200 million yuan, which not everyone could afford. Additionally, the project owed 1.74 million yuan in land use fees, with daily penalties adding to the cost.

II. The Project's Turbulent History: Two Abandons and Two Owners

The project has had a tumultuous journey:

• In 2012, the original developer, Huacheng Fuli, acquired the land and named it “World Flower,” planning to include an aquarium and a water canal among other innovative features. However, the company's financial chain broke, leading to the abandonment of the project.
• In 2017, Rongchuang stepped in as the “white knight” (purchasing shares and debts for 2.1 billion yuan), renaming it A-one and planning a 470-meter main tower along with three smaller towers. Construction began in 2020 but was halted again due to Rongchuang's own financial issues, resulting in the current auction.

III. Why No One Buys It? Too Many Challenges

Experts point out several major problems with the project:

1. High Commercial Component: 70% of the building is composed of office space and shopping malls, which rely on rental income for profits. Unlike residential properties, the payback period is at least a decade, demanding substantial capital.

2. Difficulties in Resuming Construction: Super-tall buildings are technically complex; only the T4 tower has reached 6 underground floors and 25 above ground levels, with other towers still unfinished. Resuming construction would require additional investment and carry significant risks.

3. Operational Pressures: The project was designed to attract Fortune Global 500 companies, but in the current economic climate, the rental rates and occupancy rates for high-end offices and malls are uncertain.

IV. Who Could Take Over? Only Certain Parties Would Dare

Ordinary real estate companies would be hesitant. Experts suggest two potential buyers:

• AMCs (Asset Management Companies): Specialized in dealing with non-performing assets, they could restructure the debt and revive the project.
• Local State-Owned Enterprises: With government support and financial strength, they could undertake the responsibility of managing this “city landmark” while mitigating debt risks.

V. A Warning for the Industry: The Time to Cool Down on Super-Tall Buildings

Many cities once aspired to build super-tall buildings as symbols of their prosperity. However, with the real estate industry in a period of adjustment, companies lack the funds and face operational challenges, making super-tall projects increasingly problematic. This project exemplifies the high costs, long timelines, and slow returns; any funding shortfall can lead to abandonment. In the future, cities may approach the construction of super-talls more rationally, avoiding the blind pursuit of being the tallest building.

In Summary: The dream of making A-one Chongqing's tallest building has collapsed, reflecting the shift in the real estate industry from reckless expansion to more cautious contraction. Building super-tall structures requires both substantial funding and effective operational capabilities.