Long Rental Apartment 2019 Three Key Words: Financing, Crisis, Strong Control

At present, all over the country are seeking talent policies for "grabbing people", and the urban population mobility is increasing. After several years of foreshadowing, the long rental apartment market in the first tier cities has become popular. According to statistics from third party organizations, the occupancy rate of some long rental apartments in Beijing, Shanghai and Guangzhou can reach 93%, 89% and 95% respectively.

Over the past year, the attitude of capital to long rental apartments has also been in conflict. Many brand operators have been favored by capital. For example, in the first half of 2019, with the vigorous promotion of capital, Cubo Apartments managed 100 thousand, becoming the leader of the centralized apartment, followed by 54 thousand apartments. In the field of decentralized apartments, as of the first half of 2019, free operators ranked first among 850 thousand management houses, and the total number of operators in the top three operators has exceeded 2 million, and the head effect has been further enhanced.

This is followed by real estate developers, intermediaries, Internet capital and some hotel service groups entering the long rental apartment industry. However, because the long rental apartment industry is in the exploratory stage of various modes of operation, the major brands have not yet formed a relatively fixed market pattern. The cost performance, service and technology means will become the main factors for the future competition of the long rental apartments, and will also become the important development direction of the long rental apartments in the future.

Financing and listing

The duration of capital giving to enterprises is approaching, and long rental apartments are once the draught of capital chasing. Nowadays, the demand for capital returns is pushing enterprises to go public. In the eastern time of November 5th, green guest landed on NASDAQ. Green guest listing is undoubtedly a milestone in the long rental industry. Prior to October 29th, shell apartments also formally submitted a prospectus to the US Securities and Exchange Commission (SEC), ready to be listed on the US NYSE, with the ticker symbol "DNK".

A few days ago, CEO, Xiong Lin, said that the first and foremost task at present and in the future is to cultivate products, services, technology and teams. But he also stressed that he would not rush to start IPO.

In fact, the head brand apartment has a high thirst for money, and they can get larger capital through the listing. Fang Dongdong founder Quan Lei analysis pointed out that in 2019, the long rental apartment financing has two characteristics: the amount of financing is huge, focusing on the head enterprise.

In February this year, eggshell apartments announced the completion of the $500 million C round of financing. This round of financing was jointly led by Tiger Global Fund, ant gold suit, Chunhua capital and investment. At the same time, CMC capital, Gao Rong capital, pleasant capital and other old shareholders continued to vote. After the end of this round of financing, the valuation of eggshell apartments has exceeded 2 billion dollars; in March, Cubo Apartments announced that it won $150 million D round of financing, and Canada's leading institutional fund management company CDPQ was the current strategic investor; in December, the long rental apartment Xin Xin group announced the completion of the C round of financing, with the amount of financing amounting to several hundred million yuan, invested by Carlyle.

After several years of development, the first echelon of long rental apartments has been formed: free, eggshell, green guest; the size of the centralized apartment is temporarily ahead of the cube and Vanke. From the perspective of financing, capital is increasingly concentrated on state-owned enterprises, developers, well-known brand apartments and other top businesses and high-quality enterprises.

Profit dilemma

On the other side of the coin, it is difficult for small and medium-sized apartment operators to get capital favors. The high cost of private capital has led to many brands facing financial crisis. In July this year, Lok's "high and low income" operation mode led to the fragmentation of capital chain, and became the signal of the coming winter rental. Quan Lei pointed out that the long rental apartment through the "abnormal means" market operation can not withstand the test of the cold winter, resulting in a large number of apartments in the capital chain crisis.

The profitability of long rental apartments has been unresolved, and it is also the main reason for small and medium-sized apartments to fall into operational crisis. Domestic long rental apartments profit pressure again appears, there is a certain degree of restrictions on the efficiency of capital efficiency, so the real estate and business operators are more cautious about expanding new projects.

In the first half of 2019, the overall growth rate of the operators of Housing enterprises gradually slowed down. Vanke Park Housing expansion scale for 230 thousand, 40 thousand of the poetry, 40 thousand of the international community, 24 thousand of the investment apartment, compared with 2018, the scale of housing is flat.

From 2018 to the first half of 2019, the number of new rental housing operators is approaching. In June 2018, Huarun entered the field of long rental apartment, and now it has a nest of 40 thousand rooms. Compared with the previous year, it has doubled the number of new houses, and the number of new houses has reached 16 thousand in six months.

State owned enterprises are gradually playing the leading role. In November 29th, 2 rental housing sites were successfully sold in Pudong New Area, Shanghai, with a total selling area of 116.4 mu, a total construction area of 158 thousand square meters, and a total transaction price of 929 million yuan, respectively, from Shanghai Pudong Development Housing Development Co., Ltd. (Pudong Development Group) and Shanghai puyue Real Estate Co., Ltd. Kai Xin Bao information shows that the real controller of Shanghai Pu Yue Real Estate Co., Ltd. is Shanghai Putuo District SASAC.

Strong supervision Era

This year, the crisis of long rental apartments has erupted frequently, which has attracted the attention of relevant departments. The most stringent housing rental policy has been introduced in various cities in the past, and the pilot projects in the two major "disaster areas" of Hangzhou and Nanjing have been launched.

In September, the four departments of Nanjing jointly issued the notice on further standardizing the behavior of Housing leasing management to prevent market financial risks. It pointed out that a rental housing trusteeship system should be established, a rental entrust and receipts agreement signed with banks, a special rental account for institutions to be paid, and a rental bank to be trusteeship.

In November, the Hangzhou Municipal Housing Authority, the Joint Municipal Finance Office and the Hangzhou branch of the people's Bank of China, formulated the "Hangzhou housing rental fund supervision and management measures (Trial Implementation)". It is clear that the "trusteeship" Housing leasing enterprise must freeze some funds in the special deposit account of the lease fund as a risk prevention and control fund, and in certain circumstances, it will be used to pay the rent of the premises entrusted to the lessor and refund the lessee's deposit.

In December, the Ministry of housing and urban and rural construction and other ministries issued the "opinions on rectifying and standardizing the order of housing rental market". It pointed out that the housing leasing enterprises with "high and low income" and "long payment and short payment" mode of operation should set up supervision accounts for leasing funds in banks, and rent and deposit should be included in the supervision accounts.

According to the people in the industry, the mode of class margin will be popularized to major cities in the future. This policy is a guarantee for landlords and tenants. The policy has a great impact on the long rental apartment. Special accounts also means financial transparency. On the one hand, it can supervise the health of the enterprises. On the other hand, it can also prevent illegal appropriation of rent and other illegal activities.

The Minister of housing and construction, Wang Menghui, wrote directly about the long rental chaos. He pointed out that during the special rectification period, more than 80 thousand housing rental intermediaries were investigated, and more than 10 thousand rental housing intermediaries with irregular behavior were investigated. More than 8000 illegal cases were reported, which effectively curbed the chaos of the housing rental intermediary industry and purified the market environment of the housing rental market. Next, special classes will be established for special rectification, and market supervision and system construction should be strengthened. This shows that the state attaches importance to the housing rental market and the determination to purify the market.

Cities have begun to investigate the housing leasing intermediaries, expose illegal enterprises, strengthen the supervision of the housing rental market, and urge enterprises to develop healthily. The market is becoming more standardized.

The state has issued relevant policies continuously, and the market is facing the survival of the fittest. As the whole thunder says, only those companies that control cost, manage capital well and operate well can survive in the cold winter of the industry. Looking forward to 2020, as a powerful supplement to the housing system, the long rental apartments will still get sufficient market opportunities in the future, and a large number of state-owned houses will be gradually forming scale.