China’s Unfinished Buildings Deal Severe Blow to Environment and Economy

For years, the issue of “unfinished buildings”—construction projects abandoned halfway through—has been a major societal problem in China. A recent study published in the academic journal One Earth has quantified the scale and impact of this problem. A research team from Kinan University, Huazhong University of Science and Technology, and Tsinghua University analyzed geographic data on 1,779 unfinished buildings across 142 cities, focusing on their environmental and economic costs.

485 Million Tons of Resources Wasted

According to the study, these unfinished buildings have resulted in the waste of 485 million tons (±42 million tons) of construction materials. This massive waste has increased the carbon intensity of the real estate industry’s CO2 emissions by 9.6%. The processes involved in producing, transporting, and disposing of these construction materials have significantly contributed to climate change.

Even more concerning is the health impact. The PM2.5 particles generated during the construction and subsequent deterioration of these unfinished buildings are estimated to cause a reduction in health-adjusted life expectancy equivalent to 2.6 million life-years. This is due to the fine particulate matter triggering respiratory and cardiovascular diseases.

Economic Losses of $347 Billion and Widening Social Disparities

Economically, the study estimates a total loss of $347 billion (±$32 billion) affecting buyers, developers, and contractors. The research team highlights that these economic losses are concentrated in newly developed suburban areas, exacerbating social inequalities. In these regions, homebuyers are left unable to move into properties they have already invested in, while developers face financial difficulties, resulting in a vicious cycle of halted projects.

Between 2019 and 2023, unfinished buildings occupied 164 square kilometers (±8 square kilometers) of urban development land across the country, with total floor space amounting to 415 square kilometers (±56 square kilometers). This area is comparable to the size of central Tokyo, highlighting the inefficiency in land use.

Structural Issues in China’s Real Estate Sector

The surge in unfinished buildings is linked to issues within China’s real estate development industry, particularly excessive leveraging and poor risk management. Many developers simultaneously undertake multiple projects, leading to frequent construction halts when funding issues arise. This problem has become more pronounced in the 2020s, as several major real estate companies have faced bankruptcy.

The research team recommends policy measures such as stricter regulations for development approvals, the introduction of completion guarantee systems, and the establishment of funds to protect homebuyers. They also call for urban planning reforms to promote the demolition and recycling of unfinished buildings and the effective use of land.

This study is significant as it visualizes the environmental and social costs of urban development in China through data. Similar issues are emerging in other developing countries, making the findings particularly valuable for fostering sustainable urban development globally.

Challenges Ahead

To address the problem, it is essential to strengthen regulations on developers’ financing and increase transparency in the construction process. For existing unfinished buildings, flexible solutions such as government-led redevelopment or land-use conversion are necessary. The research team concludes that ongoing large-scale data collection and analysis are critical for providing policymakers with actionable recommendations.