Abstract:From the perspective of the performance of the mainland real estate intermediary service market in the three major segments of second-hand housing transactions, new housing transactions and housing leasing, the second-hand housing transaction market has always been the main body of real estate intermediary services and has maintained stable growth. In 2022, the transaction volume of second-hand housing in real estate intermediary services reached 5.8 trillion yuan, which fluctuated compared with previous years, but remained at a high level, mainly due to the huge real estate market in mainland China and the growing demand for improved housing for residents. The new home transaction market also showed strong growth momentum. In 2022, the transaction volume of new homes reached 5.4 trillion yuan, an increase from previous years, thanks to the acceleration of urbanization and the government's policy support for the real estate market. The rental market is also showing a steady growth trend. In 2022, the transaction volume of housing leasing reached 1.4 trillion yuan, an increase from previous years, mainly due to the increase in population mobility and the change in young people's perception of renting.
1. Definitions and Classification
The real estate intermediary service industry in mainland China focuses on providing a full range of services for second-hand housing transactions, new housing transactions and housing leasing, covering the collection and release of housing information, customer consultation and reception, price negotiation, contract signing and follow-up services. In terms of second-hand housing transactions, intermediary services provide efficient and safe transaction guarantees for buyers and sellers by collecting and publishing housing information, assisting in price negotiation and handling transfer procedures, etc., highlighting the advantages of professional and personalized services. New home transaction intermediaries work closely with developers to provide standardized, large-scale services to help buyers obtain new housing information and discounts, while responding to policy adjustments and market changes. The housing leasing intermediary service meets the diversified and personalized needs of the rental market with its quick response and efficient service, especially in densely populated areas.
Second, the business model
1. Customer acquisition mode
With the continuous development and penetration of the Internet and live e-commerce, the online trend of real estate intermediaries is accelerating, and the industry mainly acquires customers through offline institutions, acquaintance introductions and online live broadcasts. From the perspective of the second-hand housing and housing rental market, the penetration rate of institutions and online has continued to accelerate in recent years, housing consumers and renters can access housing through offline intermediaries and online individuals and institutions, and at the same time, institutions and individual intermediaries also contact consumers through leaflets, advertisements, live broadcasts and acquaintance customersThe industry is mostly based on online platforms and personal intermediaries under brands, and the customer acquisition method is mostly based on online publicity.
2. Profit model
The real estate intermediary service industry in mainland China is a profit method, and the second-hand housing and housing rental market is mainly charged at both ends, and individual and institutional intermediaries connect housing suppliers and housing demanders, and charge a high intermediary fee to both parties, and some intermediaries may only charge fees in one direction, of which housing demanders pay a relatively high proportion. At the beginning of the sale of new houses, developers will contact various institutions and individual intermediaries in advance to obtain housing demand users with agreed successful sales fees (mostly based on sales points, and some use specific amounts).
3. Industry policy
In recent years, the real estate intermediary service policy in mainland China has shown a trend of strengthening supervision and standardizing development. With the continuous development of the real estate market, real estate agencies play an important role in facilitating housing transactions and improving transaction efficiency, but there are also problems such as opaque fees and misuse of customer information. To this end, governments at all levels have successively introduced a series of policies and measures aimed at standardizing real estate brokerage services, protecting the legitimate rights and interests of both parties to the transaction, and promoting the healthy development of the real estate market. These policies include strengthening the management of filings, implementing online signing, and implementing the supervision of transaction funds, aiming to improve the transparency and standardization of real estate brokerage services, reduce market chaos, and create a fairer, just and more transparent trading environment for the real estate market. At the same time, it has also strengthened the supervision of the real estate agency industry and improved the overall service level of the industry.
Fourth, the development process
From the perspective of the development of the real estate intermediary service industry in mainland China, from the embryonic stage in the early 80s of the 20th century, only a small number of institutions provided local housing sales and leasing services, and gradually emerged with the boom of the real estate market in the 90s, the number of institutions increased and the scope of services expanded. After entering the 21st century, the industry has entered a stage of consolidation, with powerful institutions enhancing market concentration through mergers and acquisitions, while the popularization of Internet technology has brought revolutionary changes to the industry, and information transparency has been greatly improved. In particular, since 2010, government supervision has been continuously strengthened, and a series of policies and measures have been adopted to promote the standardized development of the industry and ensure that the market is fair, just and transparent. This process not only witnesses the growth of the mainland real estate intermediary industry, but also reflects the continuous maturity and improvement of the mainland real estate market.
Fifth, the industry is facing
1. Policy risk
Frequent policy adjustments may lead to market instability, and investors and developers need to pay close attention to policy changes and adjust their strategies in a timely manner. The government's regulatory policies on the real estate market, such as purchase restrictions, loan restrictions, and sales restrictions, may have a profound impact on the real estate industry. For example, risks arising from the land system, such as vague land property rights and unclear principal-agent relationships, may lead to the use of land not being restricted by property rights, and weaken the function of land value preservation and appreciation. With the gradual strengthening of government supervision of the real estate market, enterprises may face stricter compliance requirements, such as strengthening filing management, implementing online signing, and implementing transaction capital supervision, which increases the operating costs of enterprises.
2. Talent risk
With the rapid development of the real estate market, the demand for high-quality and professional talents in the real estate intermediary service industry is increasing. However, the current market lacks the supply of relevant talent, which may make it difficult for companies to recruit the right talent. At the same time, due to the fierce competition in the industry, some outstanding real estate agency talents may choose to switch to more competitive companies, resulting in the risk of brain drain.
3. Capital risk
The real estate agency services industry often requires a large amount of working capital to support its day-to-day operations, such as paying employee salaries, rent, advertising expenses, etc. If there is a problem with liquidity, it can cause the business to not function properly. When expanding or undertaking new projects, real estate agency services businesses may need to raise capital through financing. However, the limited financing channels and the uncertainty of financing costs may bring financing risks to enterprises.
4. Market risk
With the transformation of the macroeconomic cycle, consumers' consumption awareness tends to be conservative, the supply and demand of the real estate industry fluctuates, and the real estate intermediary service industry is also facing market risks. With the development of the Internet and mobile Internet, the traditional personal real estate intermediary service industry is also facing the risk of intensified competition, and in the context of increasingly strict supervision of domestic real estate intermediaries, the relevant filing and regulatory requirements have led to more and more legal issues involved in the process of real estate transactions, which have further exacerbated market risks, such as property rights disputes, contract breaches, etc.
Sixth, the industrial chain
1. Analysis of the industry chain
The real estate intermediary service industry chain in mainland China covers upstream real estate development enterprises such as Country Garden and Vanke, as well as emerging live-streaming e-commerce platforms such as Douyin and Kuaishou, providing diversified marketing methods for real estate sales. At the same time, housing rental companies such as Beike also provide stable housing support for real estate agency services. Midstream real estate intermediary companies, such as Lianjia and I Love My Home, have connected the upstream and downstream and promoted the circulation of the real estate market by providing professional real estate consulting, agency sales and other services. The downstream is mainly individual consumers and corporate consumers, and the demand for real estate has promoted the development of the entire industrial chain.
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