Abstract:In recent years, with the advancement of new urbanization in mainland China and the continuous development of China's real estate market, the scale of the stock housing market has been increasing day by day, providing huge development space for property service enterprises. On the one hand, the area under management of property has continued to increase, and the income of related businesses has grown steadily, on the other hand, property service enterprises have expanded diversified business channels in the Internet era, and the total operating income of the industry has increased to a large extent. According to data from the China Property Management Association, the total management area of the national property management industry will reach 39.1 billion square meters in 2023, and the industry revenue will reach 1.69 trillion yuan.
1. Definitions and Classification
Property management refers to the activities of the owner through the selection of a property service company, and the owner and the property service enterprise repair, maintain and manage the housing and supporting facilities and equipment and related sites in accordance with the property service contract, and maintain the environmental sanitation and related order in the property management area. According to the classification of the use function of the management building, property management can be divided into five categories: residential property, commercial property, industrial property, government property and other purpose properties. Among them, residential property refers to buildings with residential functions for people to live in, such as residential quarters, single residential buildings, apartments, villas, resorts, etc.; commercial property is sometimes called investment property, which refers to those properties that can obtain sustained growth returns or can continue to appreciate through operation, such as shopping malls, department stores, supermarkets, specialty stores, chain stores, hotels, hotels, warehousing, leisure and recreation places, office buildings, etc.
Second, industry policies
1. Competent authorities and regulatory system
According to the Property Management Regulations promulgated by the State Council, the Ministry of Housing and Urban-Rural Development of the People's Republic of China and the National Development and Reform Commission are responsible for the supervision and management of property management activities nationwide. In addition, the real estate administrative departments of the local people's governments at or above the county level are responsible for the supervision and management of property management activities within their respective administrative areas, and the price departments of the people's governments at or above the county level shall jointly supervise the property service charges with the real estate administrative departments at the same level.
Self-regulatory organizations in the property management industry include the China Property Management Association (CPMI), the China Property Service Industry Association (CPSIA), the China Property Management Association (CPMA) and regional property management associations. Among them, as the most important self-regulatory organization in the industry, the China Property Management Association (CPMI) was established in 2000 and is a national social organization with the status of a corporate legal person. Its functions include: assisting the government in implementing the relevant laws, regulations and policies of the state, assisting the government in carrying out industry research and industry statistics, providing plans and suggestions for the government to formulate industry reform plans, development plans, industrial policies, etc., representing and safeguarding the legitimate rights and interests of enterprises, and reflecting the reasonable requirements and suggestions of enterprises to the government.
2. Industry-related policies
In recent years, in order to promote the healthy and standardized development of the domestic property management industry, the Ministry of Housing and Urban-Rural Development and other relevant departments have successively promulgated the "Notice on Continuously Rectifying and Regulating the Order of the Real Estate Market" and the "Key Points of the Construction of the Credit System of the Ministry of Housing and Urban-Rural Development in 2023" and other policies, pointing out that on the basis of in-depth research, accelerate the establishment and improvement of the credit management system, study and formulate the red and black list system of property service enterprises, and at the same time deal with real estate development enterprises, property service enterprises, and real estate development enterprises that violate laws and regulations. and employees, in accordance with laws and regulations, take measures such as warning interviews, suspension of business for rectification, revocation of business licenses and qualification certificates, and continue to increase the force of industry punishment. In addition, the "Guiding Opinions on Accelerating the Development of Digital Families and Improving the Quality of Living", "Notice on Carrying out the Pilot Work of Complete Community Construction" and "Notice on Carrying out the Pilot Work of Complete Community Construction" mentioned that in the field of property management, the introduction of technologies such as the Internet of Things, cloud computing, big data, blockchain and artificial intelligence will be accelerated, and the construction of a smart property management service platform will promote the integrated development of online and offline services, and promote the intelligent and high-quality upgrading of the property management industry.
Third, the development process
In 1991, the first property management company in China (Shenzhen Property) was established, marking the official birth of the property management industry in mainland China. In the following 30 years, the domestic property management industry has experienced the initial period (1981-2003), the traditional business development period (2003-2012) with basic property services as the main focus and mainly dependent on affiliated real estate enterprises, the transformation and exploration period (2012-2017) when seeking value-added services as a new profit growth point, and the rapid development period (2017-present) with frequent listings, mergers and acquisitions.
Fourth, industry barriers
1. Enterprise qualification barriers
According to the regulations, the qualification level of property service enterprises is divided into first, second and third levels. Among them, the first-class qualification needs to meet: (1) the registered capital of more than 5 million yuan, (2) property management professionals and engineering, management, economics and other related professional full-time management and technical personnel not less than 30 people. Among them, there are no less than 20 people with intermediate or above professional titles, and the person in charge of engineering, finance and other businesses has corresponding professional intermediate titles or above; (3) property management professionals have obtained professional qualification certificates in accordance with relevant national regulations; (4) the management of two or more types of properties, and the sum of the percentage of the building area of various types of properties accounting for the following corresponding calculation bases shall not be less than 100% :(1) 2 million square meters of multi-storey residential buildings, (2) 1 million square meters of high-rise residential buildings, (3) 150,000 square meters of detached houses (villas), (4) 500,000 square meters of office buildings, industrial plants and other properties, (5) establish and strictly implement enterprise management systems and standards such as service quality and service charges, establish enterprise credit files, and have excellent business management performance. It is difficult for new entrants to fully meet the requirements of registered capital, professionals, management area, system standards and other conditions in the short term, and face certain qualification barriers.
2. Brand barriers
Brand is the comprehensive embodiment of the service quality, management level and marketing ability of property management enterprises, which needs to go through long-term accumulation and continuous market promotion. The establishment of its own brand in the market represents that the property management company has reached a certain height in terms of popularity and reputation. Generally speaking, most owners will be more inclined to choose a property management company with higher qualifications and better services, in this case, the brand influence of the property management company has become one of the important factors affecting the choice of owners. Therefore, for new entrants, there are high brand barriers in the property management industry.
3. Operational and management barriers
Property management enterprises in the operation and operation of more mode, distinctive characteristics, in the property management content, information system management, financial management, staff organization and the implementation of system standards and other aspects of the industry enterprises in the management ability of higher requirements. Generally speaking, enterprises with experience in property management will have stronger management capabilities and are more likely to take over the management of a property building, while new entrants are usually difficult to achieve efficient operation and management in a short period of time due to factors such as lack of experience accumulation. Therefore, there are high operational and management barriers in the industry.
Fifth, the industrial chain
1. Analysis of the industry chain
From the perspective of the industrial chain, the property management industry involves many links. Among them, the upstream of the industrial chain mainly includes real estate developers and various building material suppliers, etc., who provide the required building materials and equipment to provide the foundation for property management. The property management service in the middle of the industrial chain is the core link of the entire industrial chain, which is mainly responsible for the daily operation and management of the property. The downstream service objects of the industrial chain are mainly owners, who obtain efficient and professional services through property management services to ensure the comfort and safety of their living and working environments. In this value chain, close collaboration between the various participants is required to ensure the smooth operation of property management services while maximizing the benefits of all parties.
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