Longhu Hu Hu Ruoxiang: Stable Market, Long Term Service And New Growth Engine

In 2020, under the impact of the new crown epidemic, the uncertainty and risk of the real estate market are increasing; but at the same time, the policy regulation is more and more flexible and mature, and the market has entered a stable long cycle.

In such an environment, real estate enterprises should reduce the "gambling" mentality, do a solid job in products and services, and seek new growth points.

As early as 2018, Longhu put forward the strategy of "space as a service", increasing the derivative business of real estate, such as commerce and long-term rent, to explore the "second curve" of growth.

At the six-party talks on "second half and second half: detour opportunities and safe development" held at Boao 21st century real estate forum on August 8, Hu Ruoxiang, vice president of Longhu group, said that if the development engine represents the present situation of Longhu, then service is the new growth engine of Longhu in the second half.

Hu Ruoxiang, vice president of Longhu group. Data map

Long period pattern

As a stable leading real estate enterprise, Longhu's research and judgment on the market is very in-depth. Looking back at the first half of 2020, Hu Ruoxiang said that the first quarter was greatly impacted by the real estate market epidemic, especially in February when it was basically suspended. After that, many urban markets began to recover in March and April because of relaxed policies and loose funds.

In the process of recovery, urban differentiation is obvious. From the perspective of urban agglomerations, South China and East China are the first to recover. Since April, the two regional markets have recovered to the same level of last year, followed by North China and southwest China, and the recovery progress in Central China is the slowest.

Among them, the first and second tier cities recover very fast, while the weak third and fourth tier cities are still under great market pressure.

In the first half of the year, in order to stabilize the real estate market, most local governments introduced various supporting measures. However, in cities with good market in the first half of the year, the government has begun to strictly regulate and control in reverse, further reducing the base of urban housing population.

For example, in recent cities such as Shenzhen, Dongguan and Hangzhou, restrictions on purchase and sales have been tightened.

From the situation in the first half of the year, we can also see the trend in the second half of the year. Hu Ruoxiang believes that in the second half of the year, the market will continue the pattern of recovery and differentiation. 1、 Second tier cities because of demand support, so the overall volume is relatively stable, on the contrary, the third and fourth tier cities have a high probability of shrinking.

Hu Ruoxiang believes that 2018 is an obvious market watershed. With the implementation and improvement of urban implementation policies, the market of many cities has gone out of its own unique cycle under the regulation of policies. The previous city rotation law is very difficult to appear, and the fluctuation amplitude of the market has gradually narrowed.

In this sense, the market has bid farewell to the small cycle of large fluctuations in the past and entered a long cycle.

Hu Ruoxiang said that with such market changes, simple scale expansion can no longer support the long-term development of enterprises. Enterprises are urgently required to return to customers and products, and further improve products and services, so as to win the first opportunity in the next competition.

New growth engine

Longhu, famous for its quality, is a very special company in the real estate industry, which is closely related to the business philosophy of Wu Yajun, the chairman of the board.

At the beginning, when Longhu was listed, someone asked Wu Yajun whether Longhu would be bigger or stronger in the future. However, the answer is to make the army bigger and stronger.

Ten years later, Longhu has been adhering to the long-term principle, and its strategic goal is to strengthen itself and constantly build a new growth engine.

In the past few years when real estate companies have transformed and diversified, Longhu has its own firm strategy. Hu Ruoxiang introduced that in 2018, Longhu put forward the "space as a service" strategy, emphasizing the multi-dimensional driving and collaborative development of four major businesses: real estate development, commercial operation, rental housing and smart service.

For the "development" of the engine, Longhu will continue to promote it with rhythm and high quality, but Hu Ruoxiang said that in a short time, Longhu will not pay special attention to the ranking of scale.

In recent years, Longhu has made great progress in terms of business and long-term rent.

According to the financial report of Longhu group, the total commercial rent of Longhu is 4.75 billion in 2019. By the end of 2019, there are 10 newly opened shopping malls in Longhu, and 39 shopping malls have been opened nationwide, with a building area of 3.77 million square meters and an overall rental rate of 98.5%.

In terms of the total number of rental rooms in Longguan lake, the total number of rental rooms opened in Longguan Lake reached RMB 1.87 billion, reaching RMB 1.57 billion in total, and the total number of rental rooms in Longguan Lake reached RMB 1.57 billion, reaching RMB 1.57 billion in total.

In 2019, Longhu's service income (commercial operation, rental housing and smart services) has exceeded 10 billion yuan, and is expected to grow rapidly this year.

Hu Ruoxiang pointed out that these service revenues constitute the new growth engine of Longhu. Next, Longhu will firmly implement this strategy to ensure the sustainable and long-term development of the enterprise.

It is estimated that by the end of 2020, the total number of commercial projects opened in Longhu will reach 50; in addition, the number of opening rooms of Guanyu will reach 100000.

Up to now, Longhu commercial has become the business management platform with management area second only to Wanda, China Resources and Vanke (including Yinli), while Longhu's long-term rental brand crown apartment is second only to Vanke Park apartment in the centralized management apartment.

In addition to the proposition of growth, different from the first half, in the second half of 2020 and in the future, facing the impact of the epidemic and periodic adjustment, real estate enterprises will also face greater survival risks. How will they prevent risks?

Hu Ruoxiang believes that real estate is a heavy asset industry, which is different from Internet enterprises. In addition, the uncertainty of assets makes the industry face more risks. In this regard, the real estate enterprises should act according to the time, seize the opportunity, and at the same time maintain restraint. This is very important, and we must not make big mistakes.

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