Jinke Fang Mingfu: Blindly Pursuing Scale Is Not The Best Choice

The GDP per capita of 1979 and that of Germany in 1979 was equivalent to that of the United States in 1978. At that time, the urbanization rate of these developed countries had reached 70%, and at the end of last year, China's urbanization rate was 60.4%. So, the industry is big enough and there is enough room for the future. " At the recent "Boao · 21st century real estate forum", Fang Mingfu, CO president of Jinke, said.

Fang Mingfu, CO president of Jinke Real Estate Group Co., Ltd. Data map

With the advent of the "Silver Age", the "Matthew effect" of the real estate industry is becoming more and more obvious, and it seems that the difficulty of overtaking on the curve is becoming more and more difficult. At the same time, the normalization of real estate market regulation also makes it difficult for enterprises to run all the way on the track of scale, and the pursuit of high-quality development has become the consensus of the industry.

Although the "golden age" is far away, Fang Mingfu believes that enterprises have development opportunities at any time. At this stage, real estate enterprises should pursue high-quality growth under moderate scale. "Moderate scale" can make enterprises obtain living space under "Matthew effect", while "high quality" is the basic requirement of strengthening the core competitiveness of enterprises and realizing long-term development. In contrast, "blindly pursuing scale is not the best choice at this stage."

In 2019, Jinke shares achieved a sales amount of 186 billion yuan, a year-on-year increase of 57%, and achieved 124% of the annual target. The company's sales amount ranked 17th in China's real estate enterprises, and its sales area ranked in the top ten for a long time.

Long term mechanism will "iron out" market cycle

Xinguan epidemic is the biggest "black swan" event in the real estate industry this year. Affected by this, the market sales in the first quarter suffered a heavy setback. Although the market recovered in the second quarter, the overall market trend was stable except for some irrational hot spots in some regions.

For this year's real estate market, Fang Mingfu said in an exclusive interview with the 21st century economic report reporter that from a horizontal perspective, real estate is one of the industries with a faster recovery speed. The current market has returned to a normal state, but not to a hot degree. On the policy side, the word "stability" is still at the forefront.

At the beginning of the year, there are still reasons for the market to hold on to the trend of "slight increase"

First, although the overall data of the industry in the first half of the year is good, individual enterprises face great pressure.

Second, the differentiation between cities is becoming more and more serious. "Some third and fourth tier markets still have corporate promotions by the end of June, while in eastern China, some cities have been hit by policies due to overheating. In the future, this kind of differentiation will become more and more obvious. "

Third, due to the impact of the epidemic, the high-end demand (luxury housing) and low-end demand (rigid demand) in the market are weakening, and the improvement type demand in the middle end is increasing. But because the low-end rigid demand is exactly the largest part of real estate sales, it will also bring pressure on the future real estate sales.

Since the beginning of this year, the regulatory authorities have repeatedly stressed that "housing does not stir fry" and highlighted the word "stability" in the policy side. Some cities with overheated markets have introduced policies to regulate and control them. In mid July, the regulatory authorities held a rare "real estate work forum" to set the policy again and revealed the information that the long-term mechanism of real estate has begun to pilot.

Fang Mingfu pointed out that the introduction of the long-term mechanism will "iron out" the market cycle. "In the past, the market had strong periodicity, and the curve fluctuated violently, with obvious peaks and troughs; now, the market curve will be more gentle, just like fluctuating in a narrow box."

Front end investment capability determines success or failure

In this new market environment, is there any new development opportunities for the real estate industry?

"Any industry has the opportunity to grow at any time." Fang Mingfu said, "just like the bat in the Internet industry is strong enough, but the tremolo can still be done quickly in a few years."

Fang Mingfu said that real estate also has a lot of development opportunities, but it is not the mode of surpassing competitors by "one foot accelerator". "In the future, we should change from the mentality of rapid and extreme growth to the mentality of continuous operation and maintenance, including how to provide good customer service, research products thoroughly, and build the sustainable operation ability of enterprises. In the huge market space of real estate in the future, there is still a lot of room for growth. "

From the perspective of enterprise strategy, Fang Mingfu more recognizes "high quality growth under moderate scale", and seeks reasonable matching of profits while maintaining moderate scale. "If enterprises do not have this moderate scale, then in the state of strong Matthew effect, the future living space will be narrower and narrower."

In contrast, "blindly pursuing scale is not the best choice at this stage."

But the new situation also puts forward new requirements for enterprises. Fang Mingfu told the 21st century economic reporter that due to the greatly reduced fault tolerance space of the market, the investment ability of the front-end is often the key factor determining the success or failure of the project. "In the past, there were some places that were not refined and some mistakes were made that could be digested through the market, but now there is no space."

Fang Mingfu pointed out that in this case, the accuracy of investment, the grasp of rhythm, the refined volume and price judgment of the market, and the judgment of future growth are more important. At the same time, when consumers are more and more mature, the systematic improvement of product strength (including its implied service support) is also very important.

He also said that from the perspective of enterprise management, the improvement of internal comprehensive management efficiency can not be ignored.

"In the previous industry growth period, the development mode of real estate was very extensive. Because a lot of problems can be solved by the market, enterprises also lack the motivation to cut down on costs, management and details. " Fang Mingfu said that at present, the external environment faced by enterprises is on the same scale, and the development mode of scale real estate enterprises is also more similar. How to get higher profits and better development in the limited space through internal tapping is the core survival logic.

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