The Commercial Real Estate Prospect Of Tongxiang Shoe Leather City

In fact, the professional market is not a new format. It flourished in the 90s of last century, and has gradually declined in recent years.

The current professional market developed by commercial real estate?

Investment in leather industry is still in full swing.

Zhejiang's professional market is usually formed spontaneously, but the emergence of Tongxiang shoe leather city has more intentions.

The project's developer, Feng Jinyi, managing director of Zhejiang Ju Bao Real Estate Co., Ltd., said that the project land was obtained in December 2004. The government launched the land, and the purpose is to build it.

Leather city.

Tongxiang has a certain base of shoe leather industry, and the local government hopes to boost the development of the industry through the market.

Another difference between the market and the traditional professional market in Zhejiang is that it is operated by real estate developers and operates in much the same way as many commercial real estate projects nowadays.

Feng Jinyi introduced, shops split sale property rights, according to the relevant provisions, Ju Bao real estate can only sell 80% of shops, the remaining 20% must be held for a long time.

The shops sold separately are in the area of 30 square meters, and the total price of a shop is less than 200 thousand yuan.

In the first two years, the developer can get a 16% fixed return from the developer for two years.

From the beginning of third years, the owner obtained the proceeds according to the market rent level. Feng Jinyi said he estimated that the level of earnings would be around 10%.

They have inspected the operation of many specialized markets, asked experts to work out mathematical models, and calculated the possible volume and sales volume of Tongxiang shoe leather city in the future.

The yield of around 10% is also estimated on this basis.

A total of 16% of investors' return in the first two years will come mainly from developers' investment rather than market rental income.

In order to cultivate the market, the developers attract the operating households with very favourable conditions. The rent for the first year of the households in the specific area is free, and the rent is charged at 6% of the selling price in second years.

That is to say, a 30 square meter shop has a rent of about 12 thousand yuan a year, which is quite competitive.

Developers set up a total of about 100 million yuan market cultivation fund, plans to start in the first two years of use.

It can be seen that the first year of the opening of shops will be completely invested by developers, and no cash flow can be generated.

Even in the next few years, a small amount of rental income can not compensate investors for their returns.

Therefore, Mr. Rao, who has always been optimistic about the investment of shops, is not optimistic about this project.

His analysis is that investment professional market shops are much more risky than investing in community shops or along street shops.

The latter can be rented at least. The problem is only the level of rent, and if the professional market fails, the shops that are purchased may be useless.

Excluding the developer's commitment of 16%, there is still 84% of the investment, and whether the investment can be recovered depends on whether the market can operate successfully.

Even if the annual rate of return is 10%, it will take 10 years to recover all the investment.

"Half the chance of success and failure," Mr. Rao said. "If the market is ready, it will make profits. If the market does not get up, shops will be worthless."

He believes that at the moment, we must first look at the success of investment, and secondly, how long it will last after opening.

The prospect is unpredictable. Some traditional commercial markets have been successful and have prospered so far. They are spontaneously formed at a specific historical opportunity. Their successful genes include good industrial foundation, nationwide radiation and long standing reputation.

Another professional market in Tongxiang -- Pu Yuan woolen sweater market is a successful example.

It has 17 years of development history and is the largest sweater distribution center in the country.

An insider who runs a commercial real estate project commented: "now the new professional market is almost half the chance of success and failure."

If it is not a border trade city, nor a regional central city, there will be fewer opportunities for successful operation.

In recent years, the professional market in Zhejiang is on the whole showing a slight trend.

Although several markets like Shaoxing Textile City, Haining shoe leather city and Zhuji pearl market have become the distributing centers of the whole country, more markets have disappeared or disappeared.

For example, there were more than 100 specialized markets in Wenzhou, and now many markets have been closed, and the range of radiation is still limited to Wenzhou.

The Miao fruit Temple garment market is one of the most famous professional markets in Wenzhou. When it was very popular for a very long time, it gradually became cold and closed.

Almost all the owners of Wenzhou's famous clothing enterprises come from this market.

The market has been reopened several times, and the latest effort ended this year.

"If the professional market such as the clothing market disappeared or declined, it would be an improvement for Wenzhou's enterprises."

Ma Jinlong, a local authority scholar in Wenzhou, said.

He believes that the advantage of the professional market is low cost. The products sold in the professional market are not distinguishable from each other. Almost the same raw materials, processes and costs, each product has its own brand on the surface, but in fact there are no brands.

When the enterprise grows, it hopes that the product will differentiate from others and create brand, and will come out from the professional market and set up its own sales network.

After the formation of a number of such enterprises, the industry has also been upgraded.

If the professional market such as the clothing market disappears, as they appear, it can be said that there are historical reasons.

According to the briefing, so far, the investment situation of Tongxiang shoe leather city is good.

The investment manual lists its advantages: located on the side of the road, convenient pportation; the popularity of Wuzhen's tourism industry; the industrial foundation of Tongxiang's shoe leather; the rent exemption within the operating period, and the preferential policies for business administration fees and taxation.

But there are also local industry insiders and officials who are skeptical and have doubts.

For example, can investment be successful? The traditional market of prosperity has its influence on the whole country and even larger areas.

Tongxiang shoe leather city is located in the East China regional distribution center. The most concentrated city in the shoe and leather industry is Wenzhou. Whether it can attract the nearest Wenzhou enterprises is a problem. Let alone Fujian, Dongguan, Chengdu and other shoe base enterprises.

Some people also raised the question of professional market positioning.

Zhejiang's Haining shoe leather city has become a climate. In Tongxiang, there are also fur market and shoe leather market, which are located in Chong Fu and Qingshi respectively. The products of Tongxiang shoe leather city are the integration of these markets.