Village # 19 Xiajia Hutong

Village # 19 is Xiajia Hutong, literally, “Xiajia Hutong Managed Area”

Xiajia Hutong Managed Area 夏家胡同管委会

Fengtai District, Huaxiang town 丰台区花乡

konjaku: Unlike Xiju village with its population of 6700, Xiajia Hutong is small. But both are in the same area, the “southwest third ring,” which has drawn the interest of large developers who see an opportunity to build luxury mansions for the wealthy.

http://business.sohu.com/20140228/n395814141.shtml

Excerpt from “Two plots of land sell for 8.5 billion — the Xiju village site may become a new development of residential mansions”

2014-04-28

Even though the environment around the Xiju land parcel is complicated, with a lack of amenities and services, and a high-density population living in old and crumbling housing, the Longhu Real Estate Company considers that “the defects do not outweigh the merits.” “Otherwise, on the day of the auction, there wouldn’t have been so many companies scrambling to bid.” This Longhu Beijing representative divulged that the Xiju location was highly desirable, with subway and business districts close by. Longhu has not participated in many land auctions in recent years, but rather has concentrated in developing properties over subway stations, and land parcels in better environments. However the Xiju area is not too bad, and it fits Longhu’s “taste” of land acquisition, close enough to the city proper, but spacious enough to expand in all directions.

A Taihe Group representative said that the southwest third ring area of Beijing had recently become the location for a number of high-end residences, with more to come. Was the Taihe Group thinking of becoming “neighbors” with Longhu there? The representative laughed and responded that in regard to this area, “great minds think alike,” and that rather than one developer working all alone, it would be far better to have several developers creating complementary projects, thus increasing the overall value of the district.

konjaku: Taihe Group became famous (or notorious) for a 2012 development of luxury villas that sold for 47 million each. Here are some images of Longhu xichen yuanzhu, a development near Xiju village:

konjaku: the following article from 2010 gives a description of Xiajia Hutong before it was transformed.

http://news.ifeng.com/mainland/201004/0402_17_1593812_1.shtml

2010-04-02

Xiajia Hutong Managed Area is in Fengtai District, near the southern Third Ring.  Of the 50 focal-point villages, it is one of the most stressed, with the inverted ratio between residents and migrants being especially prominent. There are 187 households with 404 residents in total, and a migrant population of 6518, making the ration 1:16.

A Beijing City planning committee official said,  the Xiajia Hutong Managed Area is not actually a village, but rather an area run by the Huaxiang Agricultural Company, dispersed around Jijiamao village. In this area there are many illegal buildings, built up to four or five stories, with many rooms to let to tenants. There are many safety problems (hidden dangers).

The official said because the Xiajia Hutong Managed Area has very little land which can be used to build on, they cannot follow the usual procedure for relocating villages. Because only 187 households need to move, replacement housing will be close by in Jijiamao village,  on the  number 10 subway line next to the Second Stage Yuquanying station.

As for the Xiajia Hutong Managed Area site, the official said,  the current plan is that half of it will go to building rental housing, and the other half to high tech industry, to make up for the relative lack of such industry in the southern part of the city. 

Reporter’s visit

The car going on the Wanliu Bridge side road follows a bend, entering a three meter wide alley. The traffic noise from the Third Ring Road gradually disappears, and we see a dirty and messy residential neighborhood. A sign on a gate says, Xiajia Hutong. Not many people know this place even exists.

There are three and four story buildings, massed tightly together, some only one meter apart. At 4 in the afternoon people have already turned on lights [because there is so little sunlight]. At the car repair shop at the village entrance, one can hear many dialects.

Yesterday afternoon 55 year old Si Tongxi and his wife were sitting at home watching TV. They live in one of the few one-story household compounds in the area, surrounded by taller buildings. It’s like living under a ceiling, no sunlight gets through.”  Starting in the 1990s many temporary workers came here, and Si Tongxi  began renting rooms to them. With eight rooms to rent, he makes 2400 yuan per month. About relocating  Si Tongxi  said, “On the one hand, we will have sunshine, and I won’t have to worry about the building sinking into the ground. On the other hand, when we ‘move up’ to a better residence,  we won’t have the land and household compound, we won’t have the rental income,  and making a living will become difficult.”

konjaku: Now we move to 2013. The Xiajia Hutong buildings have been demolished and the residents relocated.

http://fdc.fang.com/news/2013-06-20/10350369.htm

2013-06-20

In 2010, Xiajia Hutong, as one of the 50 focal-point villages, was slated to be transformed. According to the media, the compensation terms were favorable, and in only 20 days 87 households had signed contracts agreeing to be relocated.

When we investigated the terms of the plan, we discovered that the residents would be paid 20,500 yuan per square meter for moving out, and 25,500 yuan per square meter for agreeing to the demolition and relocation. In replacement housing they would receive the same area as the area of their old homes. If  the replacement housing unit was smaller than their old house, they would receive 19,000 yuan per square meter to make up the difference.

At the end of 2010, commercial market price housing in that area  was already 30,000 yuan per square meter. A villager said that the amount of money actually in the compensation fund was not as much as the plan required.

According to the public announcement, the plot of land to be sold was 144,000 square meters, with a starting price in the auction of 1.31 billion yuan. It was required that not less than 10,000 square meters be set aside to build public housing.

The auction was suspended, apparently because the Beijing city government felt the real estate market needed to cool off, and letting this auction continue was like pouring oil on the flames. However, the auction was quickly resumed, but the opening bid was lowered from 1.359 billion (the price before it had been suspended) to 49 million yuan. Because the site was inside the third ring,  once again competition was fierce.

Apartments up for re-sale at the nearby Wannian Huacheng 5th stage [high-end residential ] complex  go for 38,000 yuan per square meter, but one real estate consultant believes that by the time a project is completed at the Xiajia Hutong site, the price they can get will be up to 80,000, because of the excellent location. The site, excluding the public housing, is just big enough to build 400-500 residential units.

But the immediate environment around Xiajia Hutong is not in good shape: it lacks decent stores and facilities, and to the north and west are neighborhoods of shack-dwellers which the government at present has no plans to clear up. To produce a desirable real-estate product in the midst of this environment will be a real test.

konjaku: omitted rest of article, which describes the real estate corporations bidding on the site, and their respective strategies.

Wannian Huacheng 5th stage 万年花城五期

photo of Wannian Huacheng 5th stage

konjaku: despite the cooling-off period, the land still went for a record-breaking price.

Maoyuan for 17.7 billion (2.5 billion dollars) picks off Xiajia Hutong site –a value of 45000 yuan (6,500 dollars) per square meter

http://bj.house.163.com/13/0703/16/92SEJPAD00073SD3.html

2013-07-03

On 07-03,  the Fengtai district Huaxiang town Xiajia Hutong parcel went to Maoyuan, after fierce competitive bidding from fifteen firms, for 17.8 billion, 30.2% above the original price. With a price of 45819 yuan per square meter , this is the highest land price in Beijing this year (2013)

Photo of the site

The Xiajia Hutong recording breaking price — Beijing core districts becoming increasingly for the wealthy

http://bj.house.163.com/13/0702/15/92PQ9OIN00073SD3.html

2013-07-03

A strong demand from the wealthy class for luxury residences is driving them outward, to the “outer city.” Sunhexiang in Chaoyang, Wanliu in Haidian are high-end residential districts. Tiangongyuan, Fangshan, etc., are being settled by office workers.

But the goal of the rich to buy a residence within the city center has, if anything, increased. Nowadays, any land parcel inside the fourth ring will fetch record breaking prices — this is only a mild exaggeration. Previously land in Fengtai district Huaxiang town has twice gone for soaring prices. On 2013-07-03,  the Xiajia Hutong site became the “land king” of the day.

[omitted –analysis of the land king phenomenon and how it shows no signs of dissipating]

Sunhexiang in Chaoyang  朝阳孙河乡

Wanliu in Haidian  海淀万柳等区

Tiangongyuan 天宫院

Fangshan 房山