Housing Enterprises Return Sample: Inverted Node Rush For Construction Period

With the control of domestic epidemic situation and the acceleration of the resumption of work and production in various industries, the housing enterprises also entered the critical moment of rush to the race against time.

As a head of Housing enterprises, financial innovation has a relatively high demand for the progress of the project. The completion of the record and the pre-sale record also bring some difficulties and challenges to the full resumption of work.

The time node of completion and delivery of listed housing enterprises is self-evident. For example, the purchase and transportation of raw materials, and the problems and risks faced by the acceleration of project progress have never been experienced before. As the head of related projects of Rong Chong said, enterprises are confused and anxious at the beginning of the trend after the outbreak.

With the support of local governments for the resumption of real estate production and rehabilitation, projects other than Wuhan have entered the stage of resuming labor and resuming production. A few days ago, the economic report reporters visited the construction site of several projects in Shanghai and Zhenjiang in twenty-first Century. Through the response and strategic adjustment of the high turnover Housing enterprises in the face of the epidemic situation, we could see one or two of the real estate industry's existence and development under the background of the great era.

Large operation node advance

In April 8th, the construction site of a project in Shanghai was lively. According to the responsible person, there are two delivery nodes in the project: first, the first housing supply was delivered in August 30th; the two is the remaining housing supply in December 30th.

Based on the overall control of the domestic epidemic situation, sales of industry in March have been warmer, housing prices have resumed to work and sales offices have been opened, and demand for residential housing has been gradually released.

From the sales scale, in March, the number of Housing enterprises in the single month sales exceeded 19 billion, a decrease of 8 over the same period, and an increase of 12 over the same period. Among them, Biguiyuan, Hengda and Vanke achieved the total sales volume of 66 billion, 57 billion 930 million and 53 billion 510 million yuan respectively in a single month, and the total sales volume of the Chong Chong China, Zhonghai real estate, poly development, Greenland holdings, Huarun land, Merchants Shekou, Longhu group and Shimao real estate were over 20 billion yuan. In the first quarter, financial innovation sales ranked fourth. In conjunction with RC's 600 billion sales target this year, RC will be ahead of the full resumption of operation or the big business node.

On the whole, housing enterprises face the problem of personnel and raw materials. The three or four tier cities are facing more pressure on raw material supply compared with the second tier cities. Related projects have taken a series of measures to speed up communication costs with partners.

According to the relevant person in charge, the duration of the project has been delayed for about 45 days. Up to now, the impact has not been completely eliminated. But the project ensures that personnel and materials are in place. For reemployment personnel, the team takes measures to provide certification materials for the first time, and take the way of car hire or car splicing point to point so that workers can be sent to Shanghai in batches. At present, the project has 1100 workers, an increase of about 20% than usual. After reworking, raw materials, especially raw materials for overseas processing, ensure smooth transportation in order not to affect the operation process, such as sea transportation and air transportation.

Rush to collect two key nodes

The risk of uncontrollable project is increased due to the epidemic. For example, during the completion stage, the risk of the duration guarantee of building facade, thermal insulation, paint and stone is still guaranteed. The two time nodes of the project's first pre-sale record and the completion record are related to the statements and carry over of the listed companies.

On the other hand, more than 82% of the territory is located in a second tier city, and the pressure on the three or four line city project is gradually easing. According to the actual situation of the project, the pressure of project nodes is also decreasing. Some projects increase the cost through some measures to solve the progress, and the risk is also within the controllable range. It is understood that there is a set of quality control system within the company, regardless of the progress of the project, all in strict accordance with the quality control system. The risk resistance of large housing enterprises will be reflected in the face of the epidemic.

In the Zhenjiang region, four projects are being built and two are in the closing stage. In 2019, sales of individual projects in Zhenjiang ranked second.

For example, a project in Danyang is scheduled to get all the pre-sale certificates by the end of December this year. This is a cooperative project. It took place in December 2019, and it was planned to start after the year. In order to speed up the construction period, the project leader, as early as the beginning of February, led the team to communicate with government departments and coordinate resources. The project is scheduled to start at the end of July. It is now referred to in late June. The Zhenjiang project has increased 500 workers to more than 1300 at the construction site before the end of last year.

Real estate projects involve many fields. The preparation of raw materials such as raw materials prior to the resumption of work is much more complex and difficult than in previous years.

"Army and horses do not move, forage first."

Due to the force majeure of the epidemic, the supply of raw materials in real estate has not been in place. For example, some high-end projects are mainly processed by overseas processing materials. At present, most of them have been transported to Shanghai customs, but it takes time to get to the construction site.

The supply of raw materials in Shanghai is basically normal, and the three or four tier city is another case. According to the above project leader, a lot of ore and ceramic tiles came from the sea. Before restarting work, the engineering department will send the staff to the mine to see the resumption of production and the production of the raw material suppliers and downstream suppliers, such as stones.

"The first step is to go through a series of procedures, and the suppliers of raw materials are also the same. For example, the mine must pass environmental protection testing, machine dust control, epidemic control and so on, especially the raw materials in Hubei stopped directly." The person in charge said.

A real estate project that requires billions of dollars in investment is obvious. In order to consider the operation of item company as a whole, one of the ways to solve the problem is to replace the same brand or find suppliers with raw materials.

Besides stone, concrete is also one of the scarce raw materials. When negotiating with the concrete company, the project leader can only start with payment terms and long-term strategy.

Workers are the most scarce resources. The practice of financial innovation is to lock workers in the construction site as far as possible last year. Maintain close contact with workers every day and enter workers' information in advance. For workers after coming to Shanghai, such as isolation, accommodation and other worries, solutions were also given in time: the hotels were set up in advance, and the first batch of 30 workers arrived in Shanghai and stayed in the guesthouse for 14 days.

The relevant departments in Shanghai are very clear about the policy support and guidance for the resumption of construction sites. At present, the re examination and approval system has also been changed to a duplicate filing system. However, the epidemic prevention and control is also very strict. The inspection staff of the Construction Committee visit the construction sites every day, and once they find problems, they will stop the project construction.

Turning to the impact of the epidemic on the industry, housing related stakeholders believe that, first of all, the entire real estate industry will enter the crisis coexistence industry this year, is a reshuffle of the merger year; next, sinks to the company or project, will be more cautious; finally, on the sales side, the epidemic will directly lead to delayed opening, corporate cash flow back more slowly. The delivery side will have a certain number of delayed delivery cases this year. Poor handling will lead to incidents such as group litigation.

?