Green City Li Jun: Real Estate Enterprises In The Climbing Stage Go Through The New Cycle Path

On August 8, at the 20th annual meeting of Boao · 21st century real estate forum, Li Jun, executive director and vice president of Greentown China (03900. HK), chairman of Greentown north regional company and Greentown East China regional company, pointed out that only by effectively combining product power and service power can we effectively boost domestic demand.

Li Jun believes that in the first half of 2020, the world economy will fall into recession due to the superposition of epidemic situation and trade friction. The domestic economy was suppressed first and then improved. Therefore, speeding up the formation of a new development pattern with domestic large cycle as the main body and domestic and international double circulation promoting each other has become the growth point of real estate under this situation.

Investment and development of green city

While the real estate industry ushers in a new cycle, the investment environment faced by enterprises is also changing. From the perspective of international environment, in the short term, the global epidemic situation causes economic recession, and the world starts quantitative easing; in the medium and long term, the process of globalization is hindered, international relations are reconstructed, and the global industrial chain is reconstructed, which has a profound impact on the economic and political pattern.

At the same time, in the short term, the domestic economic situation is under great pressure of steady growth, with abundant liquidity (interest rate falling) and local financial pressure. It can be seen from the recent warming of land markets that real estate enterprises are still optimistic about the development of the industry in the short term; many places have launched new talent policies, as well as the process of urbanization in China, and the urbanization pattern is further developed to urban agglomeration and metropolitan area The population concentration in Jiaozuo and other regions is increasing.

Whether we can seize the opportunity of a new round of urban development has become the chips of this round of reshuffle for real estate enterprises. Due to missing the window period of land acquisition in the previous two years, Greentown began to make efforts in 2019. It can be said that the endorsement of CCCC has greatly reduced the cost of land acquisition and increased the intensity of land acquisition.

From January to July this year, under the premise of slightly increased land acquisition in the whole industry, the green city exceeded the average level and the land sales ratio exceeded 100%. The added value of goods exceeded 19.8 billion yuan, which reached 79% of the annual target. Meanwhile, under the environment of slowing down the overall growth of the industry, the sales volume of green city in the first seven months reached 110.1 billion yuan, an increase of 26% compared with the same period last year.

Li Jun disclosed that this year, Greentown has intensified its efforts to collect and acquire M & A projects. For General M & A projects, Greentown has a "six week" plan, that is, to complete the project from contacting project information to getting the project in six weeks.

Green City Product view

Li Jun believes that through the cycle, only by constantly improving product and service capabilities, and focusing on the future, can we effectively boost domestic demand and promote economic development. This judgment mainly comes from the following aspects:

First of all, from the perspective of policy, "housing without speculation" requires strengthening the residential property. On July 24, leading comrades of the Central Committee presided over a forum on real estate work, reiterating that "housing is not speculation", insisting on stabilizing prices and house prices as expectations, and not using real estate as a means of short-term stimulation. On July 30, the Politburo meeting of the CPC Central Committee once again reiterated that "the house is for living, not for speculation", so as to promote the stable and healthy development of the real estate market. Therefore, it can be seen that adhering to the "real estate speculation" is still the policy attribute of the real estate market. Development enterprises should strengthen the residential property of real estate from the strategic level.

Secondly, from the market level, under the continuous effect of price limit, facing the same price guidance, the market will focus more on products and services, and test the product and service power of real estate enterprises in the limited price space.

Finally, from the perspective of customer demand, after the baptism of the epidemic situation, people have paid unprecedented attention to the comfort, functionality, health and social contact of home life, which makes real estate enterprises re-examine customers' purchase needs and upgrade and innovate residential products that are more suitable for customers' needs. It can be said that in a long period of time in the future, the strength of the product and service ability determines the success or failure of the competition of the real estate enterprises in the industry.

Taking green city as a reference, we can draw a conclusion that quality assurance plays a decisive role in the competitiveness of enterprises. Song Ping, the founder of green city, once said that house and life are just like "Luo" and "Pearl". House is the container of life, and life is the Pearl. So the most valuable and meaningful is to spread around the beads. This just explains the two magic weapons of green city product quality: product power and service power.

Li Jun pointed out that it is the persistent exploration of these two magic weapons that makes today's green city. Adhering to the "green city" concept of "green city" for more than 20 years, the core of the "green city" is to create the "green city" with the development of products. It can be said that the product development history of green city is a product iteration history.

It has been revealed that at the beginning of this year, Greentown compiled the "green city product pedigree", which includes 8 product series, 22 product categories and 22 product styles. In order to enhance the product strength, green city has vigorously promoted the construction of four modernizations within the group in recent years: standardization, industrialization, environmental protection and technology. At present, the "four modernizations" have been implemented in many projects.