**: Fengcai News.
On December 21, Phoenix.com, Phoenix.com Real Estate, and Fengcaixun joined forces with various institutions to launch the 4th Phoenix.com Fengcaixun Super Finance Week. A number of industry experts and business representatives conducted cloud dialogues on topics such as the new pattern of real estate, commerce, agent construction, urban renewal, and REITs, and the way out for industry transformation.
Deng Yijun, Managing Director of Colliers International China, said in his keynote speech "Breaking the Boundary, Stepping on the Other Side" that it will take time for the real estate market to recover. She believes that "at present, we are facing a very challenging market, and domestic enterprises going overseas is a new growth point." The strategy for the next few years is to fully support our private enterprises and expand their business to the world. ”
The following is a partial transcript of the speech:
The office market reflects the fundamentals of the economy and is the vane of the economy. From the perspective of the office market, the current fundamentals have encountered some challenges, many urban office buildings are excessive, the overall absorption is insufficient, the vacancy rate is rising, and the rent is declining. We expect a recovery period of about a year, and the market atmosphere in the first-tier cities of Beijing, Shanghai and Shenzhen is still relatively good.
China's economy does not exist alone, it will be affected by the global economy. The global economy recovered in the fourth quarter of this year, and the overall economic sentiment will have a slow upward process next year. Extrapolating back to the real estate market, this recovery will take time. It means that the market atmosphere is good, we have business to do, we have begun to have confidence, we can recruit, and the use of office space will slowly recover.
In the past, the market was good, and the owners did not have a positive marketing mentality, but they have begun to change their outlook and change their strategy. As a service provider, we provide full asset-light operation services and provide them with solutions, which may be the operation of an office building or the operation of a business, including hosting activities, online drainage, and leasing, which are still more popular.
On the demand side, the pace of foreign investment entering China has slowed down, and it is expected that it will take another year or two for foreign capital to slowly regain confidence in China. At the same time, we have also seen that local companies are very aggressive, and a large number of companies have increased their investment in new tracks.
In order to adapt to globalization, in the past, we used to judge the quality of a company by profit margin, but now the evaluation of listed companies has gone beyond the indicators of profit and numbers, and is more evaluated by ESG. Through the degree of responsibility of a company to the environment and society, as well as the degree of responsibility for compliance operations, these comprehensive factors are superimposed on the economic data to assist in evaluating whether a company is good or bad, including whether its valuation is right or wrong. This is also the trend of the times.
Many developers have capital risks due to high leverage, and in this case, we have more work to do at the corporate compliance level, on the one hand, how to avoid similar problems of high leverage, and on the other hand, how to eliminate these risks from the corporate structure and governance level.
We are now facing a very challenging market, where challenges and opportunities coexist. 30 years ago, we served foreign-funded enterprises to invest in China, helped them choose a location, negotiate policies, do market analysis, and told them that they should rent office buildings, buy land, open factories, and rent warehouses in the first place, and in the past 10 years and 8 years, we have seen a large number of excellent domestic enterprises go overseas and go to the world to expand their business, which is indeed a growth point.
At present, Colliers International has successfully assisted many domestic industry leaders to deploy in the global market, and our strategy in the next few years is to fully support our private enterprises, help them expand their overseas market share, and do business all over the world.