Last week, two news related to local real estate companies attracted market attention:
First, in the first land auction of the high-tech zone this year, the two cases of 16 acres and 13 acres of land in Dayuan were won by the new green real estate at a price of 23,200 yuan/㎡ and 22,800 yuan/㎡ respectively. It is said that on the day of the auction, the new green is bound to win, and many peers have to admire its strong funds.
The other is that Renhe won the 29 acres of Jinjiang Liulichang project with 23,500 yuan/㎡ last year. From the day the land was acquired, the industry was full of speculation about how it would create a "land king". Although there are no more details, judging from the details that have been announced, Renhe has broken through everyone's imagination in terms of product design.
Representatives of local real estate companies, represented by Renhe and New Green, have entered a deep water period in the overall adjustment of the real estate industry and re-entered the public eye. In the new market environment and development cycle, can local real estate companies grasp the mainstream discourse?
New rules for local auctions
Help local real estate companies return
Renhe and New Green are all local real estate companies with a foundation in Chengdu, and the experiences of local real estate companies like this have a common feature: in the process of rapid market expansion, the competitive advantage of large-scale real estate enterprises has intensified, and localized real estate companies have encountered the impact of large-scale real estate enterprises, and the living space has been compressed.
Now, with the overall reshuffle of the industry, the change of local auction rules, and the lifting of price limits, these real estate companies with a certain degree of recognition in the local market have regained their participation in the real estate market by virtue of their reputation and capital security.
Taking Renhe as an example, although it has been away from the Chengdu market for several years, its business has maintained good returns in terms of operation, and the spring garden and spring international garden developed earlier also have a good reputation in the market.
Renhe Spring International Garden, Photo: Liu Zhizhi
New Green, formerly known as Zhongrui Tianyue, has been developing projects in Chengdu. Before the launch of the new green Qijing last year, there were projects such as Tianyue City, Tianyue Hui, Tianjing Hui and Shennong Qianyu, as well as Ganjiang Star City in Nanchang, Jiangxi Province, and Shennong Huayu in Tengchong, Yunnan Province.
Artistic conception of the effect of the new green enlightenment
Yang Hui, director of the development consulting division of Jixin Bank, believes that it can be seen from the performance of Renhe and New Green in the land auction market that local real estate companies have their own unique advantages, "what land to take and what projects to do depends on the logic of each developer's accounting, and the cost structure of accounting." ”
In her opinion, these local real estate companies have a high proportion of their own funds and have lower financing costs than ordinary large-scale real estate companies, so they can raise the land price to a higher range, so as to achieve the goal of winning high-quality land plots in their hearts.
With the change of land auction rules, the price of popular land plots is high, and local real estate companies with such advantages may have some room for development in the future.
Focus on improvement
A big fan of the main town
In the previous cycle, the strength saved by blind expansion was avoided, and in this new cycle, local real estate companies have also shown some consensus in the face of opportunities.
In interviews with Renhe and New Green, two local real estate companies, it was found that "main city" and "improvement" are the key words repeatedly mentioned by these two companies.
"We will also actively acquire land and expand the scale this year. Concentrate on the selection of popular plots in the main urban area, such as the upcoming Panjiagou plot, and will actively participate. According to the person in charge of the new green brand, the company's goal this year is very clear, and it will expand in an orderly manner in the main urban area of Chengdu.
Judging from the planning map of Renhe Jinjiang project, this 29-acre project was made into 4 buildings with one ladder and one household by Renhe, with an average household area of 242 square meters. This extreme product design directly refers to the Chengdu spire group, which shows Renhe's confidence in breaking the situation through products.
Renhe Jinxiang Temple 29 acres project planning map, according to: Chengdu Planning Bureau
Some people in the industry believe that although the capital scale of local enterprises is not as large as that of large national enterprises, if the enterprises themselves have a clear positioning, do not blindly pursue scale, take advantage of the advantages of local enterprises to have a more thorough understanding of regions and plots, and have a more extensive collection ability in terms of contacts and information, choose the right place and do a good job in the project, there is room for development for local real estate enterprises.
The person also pointed out that according to his understanding, local enterprises like Renhe are not as stressful as large-scale enterprises in terms of assessment indicators, giving the team enough space and time to make products, "reducing involution is also a way to improve efficiency." ”
It's still a long-distance course
In the end, it also depends on the overall strength and endurance
In the view of Yang Hui, director of the development consulting division of Jixin Bank, the return of local real estate companies in Chengdu is related to the overall healthy development trend of the Chengdu market.
"Although there are some fluctuations in the Chengdu market, compared with other cities, the overall market in Chengdu is still improving, which can explain why Chengdu is still able to attract foreign brand developers to settle in, and can also allow local private real estate companies to return. ”
Yang Hui believes that Renhe, New Green, Bangtai, Binjiang and other companies have been more positive recently, but from the perspective of the plots they choose, these still fully consider the principle of "safety", which is more rational than the previous expansion of local real estate companies.
Renhe New Town and Spring International Garden
Peng Zhiyuan, managing director of Zhengyuan Consulting, believes that to look at the performance of local real estate companies, it should be observed from multiple dimensions such as financial resources, resources, and endurance.
In fact, under the current competitive landscape of the real estate market, these local enterprises that have returned to the public eye still need to improve their investment strategies, product research and development, resource integration and other aspects if they want to gain more development space and focus on improving the market.
Large-scale real estate enterprises have more experience in product standardization, engineering construction standardization, supply chain brand enrichment, and continuous renewal of organizational structure. How to make steady progress on the long-distance track of real estate and achieve sustainable development may be the key to the action and thinking of local real estate companies.
Of course, for Renhe and New Green, how to ensure that the land acquired at a high price is given a higher priority of "making one and becoming one", and whether it is sustainable may not be the primary issue they consider.