Chapter 710: Coal digging bumpkin

Ma Bin, the general manager of Dongshan Real Estate Company, is reporting on the business development in the past period of time.

The key to real estate development is funds. As long as the funds are sufficient and the project can be completed, there is no need to worry about making money.

Dongshan Real Estate is funded by Dongshan Mining, and its development is of course very fast. In the past two years, several projects have been completed one after another. It can be regarded as a well-known rising star in the real estate field.

Of course, compared with those real estate giants, Dongshan Real Estate is just a small shrimp.

Thanks to the rise in housing prices in the past two years, domestic real estate companies have sprung up like mushrooms, and even many companies that had nothing to do with real estate have set up companies to develop real estate, hoping to make profits.

Enterprises related to the real estate industry have turned to real estate even more. For example, construction companies, iron and steel companies, cement companies, building materials companies, etc., are originally in the upstream and downstream of real estate, so they simply set up special real estate development departments.

There are also some individuals who register a shell company without any qualifications. They can earn tens of millions by looking for connections to buy land and set up projects, and then resell the projects.

This is probably the era of the most disorderly expansion of the real estate industry. However, disorder also represents opportunity. For speculators, this is a golden age everywhere.

In the real estate industry, there is no shortage of speculators!

After Ma Bin reported the past business situation, he talked about the future work plan.

At present, several of our projects are progressing smoothly, but these projects are mainly in second- and third-tier cities in Shanxi and Shaanxi provinces, and the profitability is far lower than that of first-tier cities. So next, we plan to develop into first-tier cities and strive to win several projects in first-tier cities. A piece of land. Ma Bin said.

The strategy of developing towards first-tier cities is correct. Real estate in first-tier cities has unlimited potential and relatively large room for appreciation. It will definitely become the most popular commodity in the future.

Li Weidong first expressed his approval, then changed his voice and asked, Do you have any detailed plans or specific goals for developing into first-tier cities?

Ma Bin immediately replied: The first-tier cities are nothing more than Beijing, Shanghai and Guangzhou. If the capital is to host the Olympic Games this year, it will be more difficult to approve land, at least this year it will be more difficult to obtain land.

There are quite a few large-scale real estate companies in the Pearl River Delta region, and many of them are Hong Kong-funded companies with strong strength. If we go in the past, we will encounter very fierce competition. So our goal is Shanghai City in the Yangtze River Delta region.

We have received the message,

Next, Shanghai City will release eight pieces of land intensively. If we can get one of them, it will be of great help for us to enter the market of first-tier cities.

Do you have any information on those eight pieces of land? Li Weidong asked.

Ma Bin's quasi-book was sufficient, and he immediately took out the materials and handed them to the two bosses, Li Weidong and Zhao Jinshan.

When Li Weidong saw the information on the first piece of land, he was very excited. The location of this piece of land is very good and has great development value. If it is put in ten years, it will definitely be out of print.

Looking at the second piece of land, the geographical location is also very attractive. If it is developed into a real estate, it will definitely make a lot of money.

The same is true for the next third, fourth, and fifth lands, until all eight lands are seen, all of which are in good locations. Either it is located relatively close to the central city, or it is in an area with future development potential, or it is along the subway.

Don’t even think about these high-quality land plots ten years later, even if similar land is released, it must be the “king of land” with sky-high prices.

Li Weidong is very clear that based on the future housing price trend of the first-tier cities, the profits from the development of these eight plots into real estate are absolutely astronomical, and earning twelve figures is definitely not a problem.

You don’t even need to look at the long-term. After the country’s 4 trillion yuan stimulus plan was introduced, the real estate market rebounded rapidly. In 2011, the original policies to stimulate real estate were canceled one after another, and first-tier cities even introduced purchase restrictions. You can see How hot the real estate market is.

Li Weidong put down the documents in his hand and turned to look at Zhao Jinshan next to him: Brother Zhao, what do you think of these lands?

They are all good locations with great potential for development. If it takes three years if it is short, and if it is five years if it is long, the housing prices of these plots will definitely rise. I reckon that I will take a plot randomly. They can earn one billion yuan. Zhao Jinshan said.

Li Weidong chuckled. Although Zhao Jinshan has a business eye, he still underestimated the rise in housing prices in first-tier cities, making one billion yuan a piece of land, which is too conservative!

But it’s normal to think about it. In 2008, China’s economic aggregate had not surpassed that of Japan. People at that time could not have expected that China’s development would be so rapid in the next ten years, let alone predict that China’s housing prices would be like a rocket. rising.

When Snail House was broadcast, it aroused heated discussions in the society. The experience of the protagonist in Snail House resonated with many house buyers. At that time, ordinary people were already complaining about the high housing prices. to the ceiling.

However, the reality is that after watching Snail House, people who immediately follow the example of the main character in buying a house, must be making a lot of money now!

So Li Weidong said, Yes, you can make a lot of money from any piece of land, but what if you only take one piece of land! You have to earn a lot less money!

Then take a few more pieces and try to win three pieces of land. Zhao Jinshan said.

Li Weidong still shook his head, and then said: Three lands are not enough, I'm thinking about eating all eight lands!

I want all eight pieces of land! Everyone in the conference room was shocked.

Li Weidong discussed with Zhao Jinshan who was next to him: Eight land in one go, the financial pressure is still not small, and the coal mine needs to increase capital injection!

Zhao Jinshan thought for a while, and then nodded: There should be no problem with the funds. The money stays in the account and earns interest. It is better to circulate it. It is definitely more cost-effective than the bank interest to get a piece of land in Shanghai!

Okay, since there is no problem with the funds, let's try to eat all these eight pieces of land! Li Weidong smiled at the tree hole.

However, Ma Bin showed embarrassment, and he said: Chairman, to be honest, the competition in the real estate market in first-tier cities is always relatively fierce. This time, Shanghai City has released eight pieces of land. They are all staring too!

There are too many companies participating in the bidding of these eight lands, which are stronger than us. Not only are the major real estate companies well-known in China, but also the big real estate developers in Hong Kong Island. They have also seen the future development potential of the Yangtze River Delta region. , want to develop the project.

With our scale and popularity, if we try our best to bid for a plot that is relatively partial, it may be possible to succeed. If we bid for three plots at the same time, I am afraid it will be impossible to succeed. impossible.

This is not only a question of funds, but also involves many other factors, such as the comprehensive strength of the company, the strength of past real estate development, the popularity of the company, and even relationship factors. We do not have an advantage in these.

And from the perspective of the local government, they will definitely not hand over all eight pieces of land to one developer. It is not conducive to the development of the local real estate market.

Of course I know what you said, but it's all about human effort! Li Weidong had a scheming smile on his face.

Weidong, have you already thought of a solution? Zhao Jinshan asked immediately next to him.

There is one way, but you have to nod your head. Li Weidong leaned into Zhao Jinshan's ear and whispered a few words.

After listening to Li Weidong's method, Zhao Jinshan pondered for a moment, and said: Although the method you mentioned is feasible, the risk is not small! If the cost cannot be recovered, we will lose money.

Other cities may not be able to recover the cost, but as the most developed city in China, how can it not be able to recover the cost? Li Weidong said with a smile.

That's right. The policies and resources that Shanghai can enjoy are unmatched by other cities. It should be no problem to invest there. Zhao Jinshan nodded and continued;

But if you can think of this trick, other real estate companies may also be able to think of it. Even if they can't think of it, if they come to follow the example, we will fall into a passive position. After all, our strength is no better than those well-known big real estate companies.

Li Weidong has a confident expression on his face: Of course I have follow-up means. Don't forget that I started as a manufacturing company. This is an advantage that those big real estate companies don't have!

...

In 2008, China's real estate industry was still in the Spring and Autumn Period. Large, medium and small enterprises are scattered all over the country, and there are a lot of them. The competition among enterprises is like that of the Spring and Autumn Countries.

At that time, the leader of domestic real estate companies was none other than Vanke. This old-fashioned real estate company was undoubtedly the number one in China in terms of market value, sales volume and comprehensive strength.

In addition to Vanke, the boss, the most powerful real estate companies are several companies with a background in central enterprises. For example, Overseas Development Corporation is a company controlled by China State Construction Engineering Corporation; behind China Resources Land is China Resources Group; behind Poly Real Estate is Poly Group, and so on.

At that time, many state-owned enterprises also invested in the real estate industry one after another. State-owned enterprises had advantages in financing, so the real estate enterprises under the state-owned enterprises also thrived.

After the real estate giants with the background of central enterprises, it is the turn of private real estate companies such as Evergrande, Wanda, R\u0026F, Country Garden, and Hopson Development. Although these are private enterprises, they are also leaders in the real estate industry.

In addition to these local companies, Hong Kong-funded real estate companies are also a force that should not be underestimated in China's real estate industry.

The real estate industry on Hong Kong Island is relatively developed, and many rules of the mainland real estate industry have been learned from Hong Kong Island. Hong Kong Island is such a big place with limited development potential, so real estate developers on Hong Kong Island invested in projects in the Mainland very early on.

As early as the 1990s, Hong Kong-funded real estate companies such as Cheung Kong, Henderson Land Development, New Century, and Sun Hung Kai began to enter the mainland market. Novel real estate concepts such as common area, off-the-plan, and mortgage housing are very important to the fledgling real estate industry. As far as the mainland real estate market is concerned, it is undoubtedly a shock.

Strong capital reserves and the local government's welcome to attract investment also make Hong Kong-owned real estate have sufficient capabilities to realize their ambitions.

The mature operating experience of real estate developers on Hong Kong Island and the business district construction model have also become a model for mainland real estate companies to learn from.

Entering Shanghai is an important strategy for Hong Kong-funded enterprises. From 1992 to 1997, just started real estate acquired a lot of land in Shanghai. Hong Kong-funded real estate is obviously betting on Shanghai. Copy of Pudong New Area are also those Hong Kong capital bosses.

In 2006, the territory of Hong Kong-owned real estate in Shanghai reached its peak. The six major Hong Kong-owned real estate developers invested heavily in Shanghai. From Nanjing West Road to Huaihai Middle Road, from Jing'an Temple to Xujiahui, 80% of the high-end public works Both the center and Grade A office buildings are operated by Hong Kong capital.

The so-called prosperity leads to decline. The subprime mortgage crisis has reversed the real estate chessboard. Mainland real estate companies have grown rapidly. Faced with more intense competition, real estate companies gradually began to shrink their business.

After 2013, Hong Kong-funded enterprises have entered the sell, sell, sell model. The most typical one is Li Chaoren of Cheung Kong Industrial Co., Ltd., who sold off mainland assets for many years and cashed out hundreds of billions. News reports at that time were often reported.

Foreign economists also took this opportunity to bad-mouth China's economy, and the China collapse theory was hyped up again. Some domestic netizens also said, don't let Li Mou get away!

But from the perspective of a few years later, Hong Kong-funded real estate companies retreated at that time, purely because they could not compete with mainland real estate companies, so they had to cash out as soon as possible and leave.

When Hong Kong capital entered the mainland market back then, the biggest advantage was abundant capital. With the rapid development of China's economy and the development and growth of mainland real estate companies, Hong Kong-funded real estate companies have no advantage in funds.

Another major advantage of Hong Kong-funded real estate companies is their business model and operating model. This is almost learned by mainland companies, and they are even better than others. At least in terms of localized operations, mainland companies are even better.

Hong Kong-funded real estate companies have no two major advantages, and it is difficult to gain an advantage in competition, so they can only withdraw quietly.

This is true not only in the real estate industry, but also in other industries. About 8% of foreign companies leaving the Chinese market are due to cost factors, 2% are due to political factors, and more than 90% are because they cannot compete with Chinese companies. .

This conclusion is supported by data.

In 2010, 148 foreign-funded enterprises were able to occupy the first place in the segmented market share of the Chinese market. By 2015, there are still 57 companies that can still take the No. 1 market share in China, which is nearly two-thirds less in just five years.

Where have all these companies gone? Of course, they can't compete with Chinese companies and lose the market.

And by 2021, only seven foreign-funded enterprises can take the first place in the Chinese market in their segmented market share. They are IBM, Intel, AMD, Tesla, Apple, IKEA, and Coca-Cola.

It is estimated that by 2022, Tesla may be kicked out of this list, and their market share in China is likely to be replaced by BYD.

...

The release of eight pieces of land at the same time is a rare piece of fat, and all major real estate companies are gearing up to eat this piece of fat.

Every company also knows that it is impossible to swallow these eight pieces of land alone. Although many companies have the financial ability, when facing many competitors, even the top real estate companies do not have the ability to eat alone.

What's more, when the government sells land, it must also consider a balance. It is impossible to hand over all the land to one developer and let one developer dominate. Without competition, it will be detrimental to the local real estate industry.

Since it is impossible to take all eight lands in one go, the major real estate companies have narrowed their goals and strived for a guaranteed one to compete for two, or guaranteed two to compete for three.

At the same time, the intelligence departments and analysis departments of these companies also began to act. They began to collect intelligence and analyze which land other companies would bid for.

Everyone also wants to avoid the strong and meet the weak. For example, in a certain land, if an industry leader like Vanke is bound to win, then other companies will definitely choose to avoid it and choose other land.

Another example is a certain piece of land, if the company bidding is not very strong, then other powerful companies will think about mixing it up. If they take the land by chance, wouldn't they make a lot of money!

Some companies with relatively good relationships even communicated in advance to share the eight pieces of land as cakes, and when it comes time to bid, each will take care of its own interests without interfering with each other.

...

The briefing session before the bidding required the bidding companies to send their responsible persons to attend, so Ma Bin came to the scene in person.

The people in charge of major real estate companies basically know each other, and some of them are relatively familiar with each other. They have drank, eaten and played swords together.

It's just that on this occasion today, not many people know Ma Bin.

The scale of Dongshan Real Estate is not comparable to those large real estate companies, and it is a rising star. It is rare to have the opportunity to participate in this kind of occasion, and it is impossible to make friends with the big bosses in the real estate industry.

However, the appearance of Ma Bin's fresh face still attracted the attention of many people.

Which company does that group belong to, I don't think I've seen it before!

Yeah, I haven't seen it either, it's a new face. Could it be that there has been a major change in the top management of any company recently?

I haven't heard any news about this! Besides, this person must be a newcomer. If any of our family makes high-level changes, they won't use a newcomer!

Anyone know this person?

I know him, he is Ma Bin, the general manager of Dongshan Real Estate!

Dongshan Real Estate? I seem to have heard of it, but I don't seem to have heard of it.

Anyway, it's not our southern enterprise. It should be your northern enterprise!

I remembered that this company is a new company that just came out two years ago. It has always been doing projects in the Shanshan area! It is well-known in the local area.

There are many coal bosses in the Shanshan area. I heard that they have made a fortune in recent years, and many of them have invested in real estate.

Behind this Dongshan Real Estate is the coal boss. Have you heard of Dongshan Mining? It is a large-scale coal production enterprise in China, and it is the gold owner behind Dongshan Real Estate.

Is it really opened by the coal boss? Hehehe, a bunch of bumpkins, what do they know about real estate!

Coal diggers, just dig coal honestly, why come here to join in the fun! You come all the way, and then go back empty-handed, isn't it humiliating yourself!

Maybe they are here to learn more!

There was a mocking discussion.

The so-called peers are enemies. The competition in the real estate industry is already very fierce, and everyone will naturally reject outsiders.

What's more, this outsider is still a coal digger!