Reconstruction in Old Town District Yingjun Town Erof Changchun City’dao District, Project
1. Introduction to the Project
1.1 Project Background
1.1.1 Project planning and development positioning
The project covers an area of 343.87 hectares, with construction land of 185.11 hectares, of which: II type residential land is 99.94 hectares, commercial land is 7.39 hectares, land for primary and secondary schools is 7.19 hectares, land for public transportation station is 2.03 hectares, land for gas station and refueling station is 0.10 hectares, green land is 40.73 hectares, and road land is 27.73 hectare. Reconstruction in Old Town is mainly for construction of livable residential area, medical center, entertainment center, supporting commerce and park. The completion of this project surely will improve the regional popularity and credibility, optimize the commercial atmosphere, perfect the urban infrastructure and living environment, promote multicultural integration and interaction, and speed up the internationalization development of the city.
1.1.2 Essentiality of Project Construction
With the rapid development of economic society and the rapid expansion of urban construction, and geological disasters, reconstruction in Old Town District Yingjun Town is imminent. Old Town District Yingjun Town is located in south line of eastern Er’dao Changji. As the transportation is convenient and it’s close to downtown, there are huge development potential. At present, Er’dao has gradually transform from the suburban of Changchun City into the downtown; it’s luxuriantly turned from the back of Changchun City into the window to display Changchun City. The geographical advantage is obvious increasingly. Old Town District Yingjun Town has great advantages in exploitation and development whatever in regional position, development space, preferential policies, or various resources. It’s the whereabouts of reform of urban and rural development system and the key battleground of integration of urban and rural construction in the future.
(1) Reconstruction of Old Town is the need to achieve modernization of urban physical form
From the overall planning of Changchun City, scientificity, stage, layer and integrity of space planning of physical form in Changchun City and Er’dao District have been seriously affected by Old Town, and it’s especially obvious when overall planning completed and entered into partition planning, detailed planning and urban design of the plot. In addition, as function positioning of Old Town is unclear, system of land suitability is mixed, building layout is at random and style is in mixture, more and more negative effects will be imposed on the overall planning of Changchun City and Er’dao District with time passing by. From the municipal construction, the construction of Old Town is seriously lagging behind, and water and electricity facilities, drainage pipe network, fire control facilities and other public facilities are not supported city’s overall development, which influence the exertion of urban functions. Therefore, in order to promote overall urban planning and construction in Changchun City and Er’dao District, reconstruction project of Old Town shall be actively developed.
(2) Reconstruction of Old Town is an urgent need to economize land use and improve the utilization efficiency of urban land
After policy regulation and implementation in recent years, the real estate industry made great contribution to national economy, but it also tend to boost the economic bubble. For this purpose, the country launched a series of land regulation and control policy which presents it shall significantly economize land use and other effective resources. To start the project construction, on the one hand, it could revitalize the stock land in Old Town, so as to increase the volume rate and realize the economical and intensive utilization of land; on the other hand, land use in urban area is increasingly tensed with the development of Changchun City. Therefore, reconstruction of Old Town shall be carried out in accordance with the planning, which could improve the overall environment of Changchun City, and increase the efficiency of urban land use, so as to realize the connotative development of the city. At the same time, prices of real estate around the Old Town are generally lower than prices of real estate in other urban areas of Changchun City currently, so the total sales amount are affected. If the Old Town is reconstructed, surrounding real estate can get appreciated, and the asset of the entire city will be appreciated with the improvement of the environment.
1.1.3 Market Prospect
Commodity housing price of Changchun City from 2008 to 2011 are appearing to rise continuously; commodity housing price from 2009 to 2011 will rise sharply, and the transaction in real estate market are active. The commodity housing prices rose 27.6% year-on-year, up to 6710 yuan/square meters. In 2011, inhibiting effect that real estate regulation policy imposed on prices began to emerge, and growth rate fall down, which increase by 17.9% compared to last year. In 2012, influences that real estate regulation policy imposed on prices increased, and prices significantly decline, which decrease by 3.7% year-on-year. In 2013, regulation policy continued, while the influences on prices decrease gradually, however, the average price still increase by 2%.
At present, focus on real estate market in China obviously transferred to the second and third-tier cities. Affected by the “five new regulation policies”, the housing market are pressured. And due to the supply of commercial real estate in first-tier cities are increasing, with the higher consumption level in second and third-tier cities, Changchun City become the “blue ocean” of commercial real estate. In 2013, trade price of commodity housing appeared to rise continuously in Changchun City, especially for golden September and silver October, the average trade price is up to 6800 yuan/square meters, which is the highest level throughout the year. Meanwhile, real estate market in Changchun City does not have much bubble, and the trade price is concentrated in the 5000 ~ 7000 yuan/square meters, right demand house is still the mainstream product, but demand on improvement type has increased significantly. In 2013, real estate market in Changchun City appeared obvious market warming signal both from the supply and demand, and price. In 2014, even the market faced many uncertain factors, such as regulation policies and so on, overall market in Changchun City still remain relatively stable status, and overall average price is about 6500 yuan/square meter. The price of ready house will be higher. It provided solid foundation for real estate development as a whole project in Changchun City.
1.1.4 Advantageous Conditions of Project Construction
(1) Policy conditions
The project is located in Changchun International Logistics and Economic and Development area. This area enjoys the optimal policy in the whole city, such as, first-class land consolidation, land collection and storage, and management authority at early planning stage. The working middleman of major projects will provide with big prize, the highest amount up to one million Yuan. Enjoy preferential policies of the shanty towns. At the same time, it may apply for the national, provincial, municipal supporting policies. The reconstruction of Old Town is helpful to promote the regional economic and social development.
(2) Relevant geographic advantage
Old Town District Yingjun Town is located in south line of eastern Er’dao Changji. As the transportation is convenient and it’s close to downtown, there are huge development potential. Sales revenue of commodity house is expected to be more than 3.6 billion Yuan after this project completed, and annual sales revenue of other entertainment and supporting commerce could reach over 2 billion Yuan. And there are hospitals, schools, supermarkets, commercial complex and other units, which provide great convenience for residents.
1.2 Content and Scale of Project Comstruction
It mainly constructs livable residential area, medical center, entertainment center, supporting commerce and park, etc.
1.3 Total Investment of the Project and Capital Raising
1.3.1 Total Investment of the Project
Total project investment is 10 billion Yuan, including fixed asset investment of 8 billion Yuan.
Table 1: Summary Table of Total Investment of the ProjectUnit: RMB100,000,000
Amount of Investment
Proportion of Total Investment %
Interest incurred in construction period
Total investment of the project (1+2+3)
1.3.2 Capital Raising
Self-raised by the enterprise, and policy supplementary
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indexes
Annual operation revenue of the project is expected to be 4.5 billion Yuan, and annual profit is 1.6 billion Yuan. The payback period is 6.5 years (after taxes, including construction period of 2 year), and return on investment is 16.7%.
Table 2:List of Major Indexes for Forecast of Financial Benefits
FIRR of all investments
After income tax
After income tax
Period for recovery of all investments (after tax)
Including 2 year of construction period
Rate of return on investment
Note: "RMB10,000" in the Table shall be RMB.
1.4.2 Social Evaluation
Project plot is located at both sides of south line of Changji Yingjun Town, a old town for years. Once the project is launched and completed, there will be many commercial and trade projects, and the urban renewal will be accelerated sharply to promote regional economic development. It will provide more employment and business opportunities for the region while changing city appearance and optimizing residents’ living environment. It will build another new city in eastern Changchun City.
1.5 Cooperative Ways of the Project
PPP patterns like BOT can be used for public infrastructure.
1.6 What to be Invested by Foreign Party
1.7 Construction Site of the Project
The project is located in Old Town, Yingjun Town, Er’dao District, east to green ecological park (the former dump), south to the development zone, west to Jindazhou Driving School, and north to Jiulong Park.
1.8 The On-going Condition of Project
The formulation of project plan has been completed.
2 About cooperative party
2.1 Basic Conditions
1. Name of Project Unit: Changchun Erdao Commerce Bureau
2.Legal Address: No. 5379, Ziyou Road, Changchun City
3.Project Principal: Lang Lina
Er’dao District is located in eastern part of Changchun City, Jilin Province, located in the eastern coast of Yitong River with beautiful scenery along, 5 km away from the city center, 4 km away from the railway station, and 15 km away from Longjia International Airport. This District directly has 102 square kilometers under the jurisdiction, including a provincial development zone, Changchun international logistics and economic development zone, governing 6 streets and 1 town, with census register population of 402000 people.
The highway within the area is very convenient, close to Xinglong comprehensive free trade zone. Changchun Eastern Station - the only national land port in Jilin Province, located in the area, which could directly handle customs clearance for import and export goods. Jilin Road within the area becomes the only way which must be passed for Longjia Airport to in and out Changchun City.
In 2011, committee and district government of Erdao District proposed the development strategy of “one industry covers three districts” to implement scientific development, accelerate development, and construct modernized center city. On the industry direction, it focuses on development of modern service industry, defined two major industries in Er’dao District: the modern logistics and commercial trade; on the spatial pattern, it comprehensively promotes linkage development of central business district, modern logistics center, and leisure and business development area in Eastern Changchun to speed up and promote the construction pace of urbanization in the whole region.
Changchun international logistics and economic development was officially approved to be provincial development zone by the provincial government in January 2012, including three development regions, which are central business district in the eastern Changchun, modern logistics centers and leisure and business development area. The planning area is 49 square kilometers. The development zone is located at the core of Changdongbei open and development pilot area, located in the core area of eastern Changchun. It’s the only region which must be passed for the provincial capital cities to connect airport, inland port, energy supply area, water source, tourist destination of eastern Changchun and other major economic function partitions. It’s 4 km away from railway station, 15 km away from Longjia International Airport and 5 km away from city center. It’s the gateway of Ha-Da Express Way, Chang-Ji Express way, 102 national highway, and Chang- Ji North highway, and the first door of strategic deployment for “Chang- Ji Integration”, with advantageous geographical position. The development zone has vast size, complete infrastructure, advanced transportation, more transport and warehousing enterprises, and prosperous market commerce and trade, which is an ideal place to develop modern logistics and commerce and trade industry. For enterprises which settle down the region, they enjoy the optimal policy in the whole city, such as, first-class land consolidation, land collection and storage, management authority at early planning stage, tax sharing, revenue return on land transfer income, and investment promotion and capital introduction etc.
2.3 Contact Method
Postal Code: 130033
Contact Person: Lang Lina
Project Unit: Changchun Erdao Commerce Bureau
Contact Person of Project City (Prefecture):
Contact Unit: Changchun Economic and Technical Cooperation Bureau