Independence And Responsibility: The "War" Adult Ceremony Of Chinese Style Property

30 years ago, Vanke developed the first real estate garden in Shenzhen, and then set up a property management company.

This can be said to be the origin of China's local Property Management Company. Since then, for a long time, property companies have been playing the role of "after-sales service" by developers.

30 years later, it is very difficult for countries and economies around the world to find such a closed residential area like China.

A large number of developers "nurture" brand property, played an important role in this epidemic prevention and control, excellent companies highlighted in the experience and comparison of owners; because of the performance of the brand property, the share price of listed property companies has also risen repeatedly, and the capital market has given higher valuations of property than real estate, which is a rare highlight of property.

However, it should not be overlooked that a large number of property owners have been dissatisfied with the epidemic, and the remaining problems such as the low rate of collection of property fees and the disputes over property rights of the community still exist. This all points to the root of the contradiction: the owner's autonomy in the community property.

As another trillions of industries derived from real estate, property services are spreading from decentralization to centralization. The competition of the head companies has just begun. Property companies are no longer the supporting role of developers, but they must go to the spotlight, rely on services to win the trust of owners, and their professional operations, and strive for a day.

Standing on the front line of epidemic prevention

The sudden outbreak is an unprecedented test for every property.

Old leading property is more responsive. As early as January 20th, Vanke property set up an emergency response task force and named the "Yangtze River action". Vanke property CEO Zhu Baoquan served as the group leader.

In addition to the completion of disinfection, temperature detection, material acquisition, epidemic reporting and other work, the property company should coordinate with the grass-roots government to control the spread of the cases and the disease in this district.

According to the economic report in twenty-first Century and the third party organizations, many of the better performing properties in the epidemic are long-standing established companies, including Vanke, China shipping, Longhu, Greentown, poly, gold and so on.

Many companies manage multiple communities in Wuhan. For example, Vanke property has 61 residential projects and 26 business writing projects, among which two are Wuhan legend Tang and Yue court, which are separated from Southern China seafood market by only one wall.

There are nearly 50 life in the Wuhan service area, with over 120 thousand service owners, and a large number of sales offices and offices. The group has allocated personnel and funds for a long time to fully support Wuhan's epidemic prevention.

In addition, Wanke and Jindi organized property personnel to go to the fire god mountain; Hubei Pauli, Jia Zhaoye, Longhu and so on provide the owners with value-added services such as shopping, sending vegetables and so on.

"The epidemic prevention capability of the property depends mainly on the professional experience of community service accumulated over the years, and the mobilization of funds and resources, because the community epidemic prevention needs to quickly determine the mechanism process, and also needs a lot of material support and timely supply." A senior property company executive said.

Powerful brand properties can provide more value-added services, such as providing online medical consultation for owners, ensuring the supply of vegetables, etc. in Longhu.

Abundant capital is also the advantage of large property. During the epidemic period, Vanke property invested 200 million yuan, and China Sea property increased additional labor cost of 30 million yuan, increasing the additional material and subcontracting cost of 10 million yuan. And to analyze the epidemic situation of the controlled area, only a small number of property can be realized.

According to Zhu Baoquan, based on SIR Model (a model for predicting the trend of future diseases), the basic transmission coefficient of R0 within the takeover scope of the company is estimated to be 2.18, less than 3.22 (or higher) of the national data.

Property value highlights

Li Changjiang, general manager of Biguiyuan estate, believes that under the special background of community epidemic prevention, property services can be said to go from "behind the scenes" to "platform", and its value is better molded and perceived.

The color of life CEO Huang Wei pointed out that this is the value of the property has been found two times, the most intuitive performance is the recent rise in property shares.

According to the twenty-first Century economic report statistics, after experiencing a brief decline in the initial stage of the epidemic, the concept of property continues to attract funds due to the deepening of community epidemic prevention. From February 3rd to March 5th, many property stocks rose ahead of the market.

For example, the good stock price of Jia Zhao industry rose to 60.92%, and the property of Zhonghai property and Yali life increased by over 40%, while Baoli estate, country garden service, Xincheng Yue service and Greentown service increased by over 20%.

As of March 5th, the highest market value of country garden services amounted to 87 billion 20 million Hong Kong dollars. Besides, the market value of ya life services, Poly Real estate, Greentown service and Zhonghai property exceeded 20 billion Hong Kong dollars.

It is worth noting that the Vanke property, which is outstanding in epidemic prevention, is not yet listed. Referring to other listed property's revenue and net profit performance, the industry believes that as the only property with a revenue of over 10 billion, the market value of Vanke property will be 100 billion after listing.

Qi Zejin, a senior real estate researcher, believes that the logic of rising property stocks is weak cyclical. Good cash flow and industry concentration are relatively low. During the epidemic period, the owners pay positively, and the property fee income is stable.

Hidden trouble and development of independent development

In the real estate support and subsidies to survive for a long time, property companies independent road is not easy to go.

From the profit model, the core income source of property companies is property charges, and the property value-added services that have been coerced by the O2O bubble are still under exploration, and it is difficult to form stable income.

Unfortunately, a stubborn disease in Chinese property management is the low rate of collection. According to statistics, the annual collection rate is below 50%.

In 2020, as of February 15th, the collection rate of property fees was only about 47%.

The reason is that the property management industry in China has its particularity. When the general developers are selling their houses, they will bring their own property because they have not yet checked in. Later, they will not be able to solve the problems of renewing the contract or changing the property because there is no standardized owners' committee.

Li Changjiang said optimistically that the epidemic will increase the trust of owners in property and help to raise the collection rate.

Property management expert Shu Kexin believes that the contradiction between property and owners is a problem of distrust between the two. Good property is not only service but also transparent management.

The better service property in the context of the epidemic may ease the relationship with the owners in the short term. But in the long run, it is a permanent solution for the owners' committee to make more comprehensive comments. The trust between property owners and owners determines the future of property management.

Shu Kexin also said that the extension of property management in China is different from that in other regions. After the property has accumulated the original capital, it will develop to the community pension, medical care, education and so on. The profit margin of the property company can reach 45%. Property management should return to the essence of management, and the relevant policies should be perfected, and there is more reasonable regulation for the collection of property charges besides the cost of services.

For a market-based property company, obtaining the trust of the owners can get long-term contracts, higher collection rates and stable cash flow.

In addition, Zhu Baoquan believes that asset management and appreciation is the ultimate essence of property services. From the perspective of real estate life cycle, a series of services such as late maintenance occupy more than 90% of the whole cycle, and professional asset management capability is the fundamental competitiveness of the property.

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