Does Shanghai Country Garden lose money by renting long-term apartments?
1. Compared with other real estate enterprises, Country Garden's layout of long-term rental apartments is extremely fast. BIG+ Gaby International Community, a brand of long-term rental apartments, has more than 10 stores in first-and second-tier cities in less than half a year since it was released at the end of 20 17.
2. Country Garden plans to develop 1 10,000 long-term rental apartments within three years. President Mo Bin also claimed to build them in the future? Long-term rental city? The sound of your breathing makes your partner tremble. But is the long-term rental apartment in Shanghai Country Garden losing money?
3. Gao Bin, president of Shanghai Country Garden Group, said that Country Garden is still in the early stage of business cultivation in the field of long-term rental apartments, and his assessment index for the team is: make money without losing money. As for the occupancy rate, his requirement is to lease at least 80% of the houses for opening, and the ideal state is to maintain it at 90% to 9.5%, so as to minimize the waste of some houses and thus reduce costs.
Gao Bin said that apart from the rent difference, long-term rental apartments should have more diversified profit sources in the future, such as value-added services and financial products, which are available at present? Cross the river by feeling the stones? .
How to make a profit from long-term rental apartments in Shanghai Country Garden?
Public housing and long-term rental areas are asset-oriented models, and operators holding properties will produce a lot of capital precipitation. Long-term capital precipitation will greatly increase the cost of enterprises. If the project is unprofitable for a long time, it will inevitably affect its life cycle.
It is understood that asset securitization in the long-term rental market is currently being explored and has made breakthrough progress. Poly Real Estate issued the first real estate investment trust fund (REITs) for leased housing of central enterprises in China, and became a real estate enterprise that issued REITs for leased housing; The special plan of new apartment supporting equity-based housing trust assets was approved in Shenzhen Stock Exchange, becoming the first long-term rental apartment asset REITs in China.
Country Garden gives full play to the advantages of property acquisition and cost procurement, and applies the high turnover and rapid development model to long-term rental property development while reducing costs.
For long-term rental properties with low rents, time is money, and the high turnover model is also applicable to the long-term rental apartment market. Saving the time from project acquisition to market entry can improve efficiency, reduce cost and improve efficiency.
To sum up, the long-term rental apartment in Shanghai Country Garden is losing money at present, but it is a long-term operation project with great profits in the future. Only time can tell, in this process, real estate companies are walking on two legs, one leg is selling, and funds can be quickly withdrawn, so they have the money to support long-term rental apartments. At the same time, real estate companies have also borrowed money from many banks, so the prospects are bright.