Vanke Property "Going Down The Altar": The Fission And Return Of Chinese Property In 30 Years

Wang Shi, the founder of Vanke, did not expect that the property services introduced to Vanke residential quarters 30 years ago will develop into a trillion scale industry today; Vanke property has also become a glittering signboard.

Under the new crown pneumonia epidemic in 2020, the importance of property services is highlighted, and the capital market also gives a warm response. This year, the P / E ratio of property stocks in Hong Kong has generally reached 50-60 times. Investors ask every day why Vanke property is not listed?

However, under the scenery, the real estate industry can not hide its worries. Many property rights contradictions, word-of-mouth decline, profit problems, opened the property industry "cover.".

Vanke, which pursues "customer first", has also stepped down from the altar and is striving to return to its original intention. At the media conference in September, Yu Liang, chairman of the board of directors of Vanke, stressed that there were countless good products and good services. Zhu Baobao, chief executive officer of Vanke property, said that "Vanke property" should return to residential services and be separated from other commercial enterprises and urban services.

In the past 30 years, the "three separation" of Vanke property has once again opened its own subversive reform; the Chinese style property industry, which started from Vanke, has also entered a real reshuffle period.

A bad benchmark

On a Saturday morning in September, owners of Ningbo's Zhongliang capital sent a banner to Vanke property to express their dissatisfaction.

The response of Vanke property was very "just", and it voluntarily withdrew from the community.

No matter what the contradiction between Vanke and the owners is, the sarcastic words on the banner are undoubtedly the summary of the owners' perception of property companies in the property management disputes of many residential areas in China, while Vanke property, as the industry benchmark, is regarded as a target.

Looking back on the history, Chinese property management started from Vanke. In 1990, inspired by Sony's after-sales service, Wang Shipai introduced property management to Tianjing Garden community in Shenzhen.

In 1991, the first owners' committee in mainland China was established in Tianjing garden. Vanke property created a property management mode of "combining owner autonomy with professional service".

Wang Nian was known as the "fire fighters". Vanke Bantian Sijihuacheng was located in a very partial position at that time, and there was a garbage disposal plant. There was only one bus. The owner made trouble and blocked the road. Wang Shi personally took the opportunity to appease and solve the problem.

These creative and humanistic actions make Vanke a benchmark in the industry. However, with the internal independence in 2008 and the external expansion in 2015, Vanke property inevitably has management blind spots and faces challenges.

Security of Vanke property under Vanke Real estate. Visual China

In fact, not only Vanke, but also the properties of most real estate companies, as well as independent property companies, have been criticized more or less by "quality decline and reputation decline" in the market in recent years. Disputes and lawsuits over property management have increased year by year. The "Jinqi" given to Vanke has also formed a viral spread among various property communities.

Take China Resources Property, which is to be listed, as an example. In the first opening of China Resources City in Beijing, the contradiction between owners and property is intensifying in a residential area including commercial housing, limited price housing and self occupied commercial housing. Some owners are keen to establish an industry committee and change their properties.

Jinke smart service, another property company to be listed, has held 27 new court sessions since October, with service contract disputes being the most common cause of action.

According to the statistics of China judicial document network, among the numerous cases involved in the history of Jinke intelligent service, there are 3425 cases with service contract dispute as the cause of action, and it has been listed as the executee by the court for three times, as well as involving three industrial and commercial penalties.

In reality, the owners want to change their properties after the early property of many brand developers is expired; in many cities, under the multi ownership status of residential areas, disputes and disputes on public property rights are also constantly occurring.

Post fission regression

Since its inception, China's real estate industry has formed the only large residential area management mode in the world. According to the prediction of China Business Industry Research Institute, the property management area in China will reach 34.5 billion square meters in 2020.

In such a huge market, developers "get the month first" and share the big cake of residential community service with early property contract. However, in the community multi ownership state, they have more and more disputes with the owners and the industry committee.

Zhu Baobao, who has been engaged in property service for more than 20 years, has always been thinking about what is property? What is its essence? How to operate for a long time?

In the past 30 years, Vanke property has developed from residential housing to commercial enterprises and urban services, with a "troika" and its revenue scale has exceeded 10 billion yuan.

On October 17, the joint venture between liangdehang and Wanke was officially launched. The business of this sector has covered 149 cities, expanded more than 140 new projects, served more than 1140 projects, and managed an area of more than 100 million square meters.

At the same time, it has taken over 12 projects in Wuhan, such as Wuhan wanlang district and wanlang district.

But Vanke has never given up its origin: residential property. Moreover, because it realized that the essence of property is lobbying (owners) and professionals, Vanke property decided to return to its original intention.

Zhu Baobao disclosed that Vanke property will "focus on residential property and provide high-quality service", which means that after 30 years of development, Vanke property has returned its brand to residential property after the formation of the troika from residential property to commercial property and urban property.

"If you are the owner of Vanke property, do you want Vanke property to grow bigger? In fact, you don't want to. You must want your property company to provide services only for you. " He said.

To this end, Vanke property will further dismantle the city company and focus on the exclusive services of the local owners, such as Shenzhen, which will be divided into Futian, Longgang and other district level institutions; secondly, it will set up a four level management and control system for service quality related issues, which will be exclusively owned by the owners without losing control.

Vanke also creatively set up the position of chief customer officer, which is held by Yang Guanghui, to inspect the implementation process of products and services from the perspective of customers. "Such a unique position is a signal to the internal and external, and we should put the customer experience in a more important position." Zhu Baobao said.

"Return to the original intention, good service is the root of Vanke property." Zhu Baobao stressed.

In fact, the decision-making power of the property service contract is in the hands of the owners and the property committee. The income and profit of the property company also depends on the cooperation of the owners.

The civil code of the people's Republic of China issued in May 2020 stipulates that the owners have the right to jointly decide to terminate the property contract.

Under the background of frequent property disputes, the property fee collection rate is not satisfactory. From the second-hand property data of Vanke property, the initial property fee collection rate is less than 70%. "Although the listed companies say that they are more than 90%, in fact, the property projects signed with the industry committee are actually collected. At first, the collection rate is about 70% in the first year, and then it will take at least three years to make it better." Zhu Baobao disclosed.

He put forward a core point of view: the value and essence of property is to keep and increase the value of customers' assets, to let owners reach a consensus, to provide professional services, and to spend money for owners.

He further said that for property companies, its core competence is lobbying to obtain the support of owners; it is professional and provides good service. "The property company is essentially a GP (general partner in the fund). It received money from the owner on January 1. Can it spend the money to the satisfaction of the owner or reward the owner within one year? For the fund, usually take 2%; for the property company, take is excess remuneration, excess earnings. "

If you want to do a GP well, whether it is professional and transparent is the core of the property. "If all these things are done, I believe no owner is willing to drive you out."

In the view of a leading real estate analyst of a well-known securities firm, as one of the derivative industries of the real estate industry, the popularity of property in the capital market this year is not in line with the reality.

He believes that the growth of property companies, the rate of charges, and the expansion supported by capital will ultimately depend on whether the owners support and whether the management contract can be extended. However, there is considerable uncertainty.

In this regard, Zhu Baobao's attitude is that he hopes Vanke property "pursues perfection in complaints"; for property companies in the whole industry, the real survival of the fittest has begun.