The real estate industry is becoming smaller and smaller .

Mondo Finance Updated on 2024-03-07

At the beginning of February, the major central enterprises began a large-scale organizational adjustment, and there is basically only one principle:Reduce the number of cities, strategically abandon third- and fourth-tier cities, and reduce the control radius.

This round of central enterprise giants also seems to realize that they are going to start smallerIt is not only the reduction of the number of city companies, but also the downsizing of the establishment, which is also reflected in the number of newly started projects, and one person will be used as several people in the future.

The central enterprises take the lead in business development and strategic adjustment, and it is obvious that they are also learning some non-standard ways of playing deep small and medium-sized real estate enterprisesIn the later stage, the central enterprises will make efforts to invest in a small number of core urban agglomerations, and abandon the strategic layout of the early national multi-city and multi-regional platform

This major historical change also indicates the development logic of the industry in the future. Being small and fine must be the only core strategy of the real estate industry in the futureThe gradual transformation from a bigger demand to a stronger demand should also be the industry's return to the original place.

"Have a house to live in" to "live well".

Ten years is just a moment in history, but for China's real estate industry, it can be described as "the right time to forge ahead". During this period, the industry has experienced explosive growthIt has also shifted from "comprehensive development" to "key development".Now it has entered a period of rational maturity and is moving towards a stage of high-quality development.

After more than 40 years of adjustment, the two major housing systems have been further improved, and the scale of housing has continued to increase; By 2020, the total floor area of household housing in the country exceeded 50 billion square meters;

Nowadays,The people's demand for housing has shifted from "whether it is available" to "whether it is good or not".The real estate industry is also standing at the critical point of the transformation of old and new development momentum, and "Home Ownership" is becoming a common development path for developers, developers and buyers.

It can be seen from the major adjustments of several major central enterprises in the past year that strengthening is the unswerving strategic orientation of real estate enterprises in the future. How to be stronger,First of all, it must start from the aspect of products and services, so that the house can truly return to the residential attributes.

From the first half to solve the "house to live", to the second half to meet the new citizens, young people's "job-housing balance" and high-quality housing demand, standing at the stall of demand change, in order to promote the steady and healthy development of the real estate industry and a virtuous cycle as the goalThe key to the transformation of real estate enterprises in the future is actually how to build a good house

2022-2023 is the most critical two years for the transformation of the old and new models in the real estate industry. Many private real estate companies have slowed down and fully realized the need to return to rationality. Followed by the leading central enterprises, the local state-owned enterprises that have recently developed on a large scale have also shifted their strategies to product ports.

Obviously, the real estate developers have realized thatThe industry will say goodbye to the development stage of "heroes by scale", and it is time to slow down, more precipitated historical moments. In recent years, the site of the performance briefing,"Quality growth", doing "small and beautiful" real estate companies have also been mentioned by many real estate owners again.

In the early era of high turnover of "big fish eat small fish",Even if many real estate companies want to be small and beautiful, they can't calm down and not follow the trendHowever, today's market orientation is to force developers to be self-disciplined and self-reliant, and to adhere to the product operation route of self-revolution.

The underlying logic of "real estate companies are small".

Looking back on this decade,Property management, agency construction, residential services and other subdivided specialized businesses separated from the field of real estate development, all of which have related companies listed on A-shares, H-shares or U.S. stocks, and representative enterprises in sub-sectors such as China Resources Vientiane Life, Greentown Management, and Beike Housing have shown their strength in the capital market.

Back to today's overall **, these are a few businesses that most developers didn't look down on at all in the early daysNow it has become a popular track for large-scale private enterprises and major state-owned enterprises and central enterprises to take the lead, indicating that small businesses are still worth cultivating and strengthening.

Today, the incremental scale of the overall industry development sector is stable at 10 trillion yuanWith such a large volume, even the share of the top central enterprises still has a lot of room for improvement, so there is no need to pursue excessive performance targets, and should turn to the profit indicators of real estate enterprises and the increment of operating business.

If a real estate company has no profits, other business indicators are impossible to talk about, and the product quality will definitely not improveFor a real estate company to continue to operate, profit is one of the core indicatorsTherefore, in the future, real estate companies will pay more attention to the underlying business indicators.

The small size of real estate enterprises can be regarded as a way for enterprises to pursue excellent management efficiency. Because the market is large enough, it is easier for small-scale organizations to concentrate their firepower on product operation ports, it is easier to deepen and improve customer groups, and it is more flexible to mobilize resources in many management and control indicators.

Regional intensive cultivation and shrinking urban layout have been the consensus of the real estate industry. The so-called shrinking layout is to shrink the amount of investment, and second, to shrink the layout of the cities and concentrate superior forces, the limited resources of the enterprise will be invested in the city with good market sales performance, good product reputation and strong team ability.

For example, in the past, 7-8 cities were invested, and each city invested in 2-3 projects, but now it is concentrated in 2-3 advantageous cities to increase the density of projects and make the management radius more efficientIt seems that the scale is smaller, but the concentration is higher, and it is easier to create explosive products and win the first opportunity

In the past two years, many small and medium-sized real estate companies that were forgotten by the mainstream people in the early days have been out of the circle year by year, not only many popular products in the industry, but also directly touched a group of stable customers. Word of mouth is gradually spreading across the country, and today's product orientation is actually an improvement of life experience

Therefore, don't let residential real estate become an island in the city, which requires real estate companies to not just focus on the small world in the wall (i.e., the architectural vision).It is also necessary to pay attention to how to create a more friendly urban interface and a stronger neighborhood vitality (i.e., urban vision) in residential real estate.

Summary:

All kinds of signs show that at the time of the transformation of the old and new models of real estate development, the stock market and urban renewal demand will bring a market size of more than trillions of yuan in multiple subdivisions;

In the incremental market,The scale of commercial housing sales will remain at the level of more than 10 trillion yuan in the next many yearsAt present, it seems that many real estate companies still have a lot of room for development, and long-termism is still worth sticking to.

For the future of the real estate industry,There is already a key consensus: the profit margin of the industry is still there, and the net profit margin and IRR of the project are still much higher than those of the manufacturing industryReal estate is still one of the best in the industry;

The pursuit of profit will be the core of business operation, around this core, the size of the enterprise will be the result of waterOptimize your marketing strategy, continue to innovate and improve your products, and be patient and persistent to go further

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