At 9 am on September 5th, several owners of Ningbo Zhongliang Shoufu Community drove their cars and blocked the entrance and exit of the community. Then the owners will print the words”What can’t you do, the first place to collect money” The pennant is delivered to the community property service center.
During this period of time, it has become a popular practice to hand similar pennants to properties, and it has become a popular practice in Vanke Property Ningbo. Before Liangshoufu Community, many communities across the country received ridicule pennants from owners.
The owners are proficient in business, send pennants, take photos, and broadcast online.
Most properties did not respond, and they sank after a while. However, the Vanke Property Ningbo project is different. They not only sent a very”rigid” response to the owner, but also decided to withdraw from the community.
Ningbo Zhongliang Capital Community is a project developed by COFCO Real Estate, with a construction area of 135,000 square meters. The project was delivered on October 25, 2019. The total number of households is 730. Vanke Property It is entered through marketization. The beginning and ending time of the preliminary property contract is September 18, 2017 to September 17, 2020. The project has not yet established an industry committee. In the charging standards of Vanke Property, this is an ordinary property project.
Some owners and the focus of conflict are the parking space prices.
After the delivery of the Zhongliang Capital Community, Vanke Property will charge 240 yuan per parking space per month for the parking service of civil air defense parking spaces in the community. Generally, a few months of renovation period will be reserved according to the occupancy rate, during which the community will take free parking. With the increase in residential occupancy rate, Vanke Property Service Center decided to start the fee on September 1 based on the actual situation. On September 1, the property service center began to handle the leasing procedures of basement air defense parking spaces. A total of 48 parking spaces were leased on that day.
That is, after the parking lot started to charge, some owners decided to protest.
The petition submitted to the owner of the pennant is to reduce the price of the parking space rental fee to between 150 yuan and 180 yuan. This price is quite different from the project price of 240 yuan. The government filing price of the project is 360 yuan (including 330 yuan/month for parking space rental fee and 30 yuan/month for parking space management fee).
On September 13, Ningbo Vanke Property Service Co., Ltd., a subsidiary of Vanke Property, posted a notice on the bulletin board of Ningbo Zhongliang Capital Community. The content is as follows:
Vanke Property Ningbo project decided to withdraw. In the announcement, it was because,”We regard customers as family members. Since we took over the community in 2019, we and the community owners have overcome the dangerous new crown epidemic… The epidemic hasn’t gone far yet. No one mentions the real estate brothers who deliver water, food, and parcels. The employees who have been on the front line of customer service with 30,000 steps a day in the circle of friends have been forgotten.”
Some Vanke property staff said that it is indeed very sad. During the epidemic, they were fighting on the front line of the business. At that time, they had a high evaluation of the property. Unexpectedly, the evaluation of the property was suddenly so low.
Vanke Property said that the start and end time of the current property contract is from September 18, 2017 to September 17, 2020, and continued performance after expiration is an indefinite contract. According to the contract, before the termination of the contract, it is necessary to submit the termination of the contract to the construction unit 3 months in advance, and simultaneously need to report to the street and property office in writing. The decision to leave or leave the property will be determined by the construction unit and the owners’ assembly. After submitting an application to start the withdrawal procedure, Vanke Property will continue to provide property owners with quality and quantity property services before the new property company enters the site, and will respect and support the owners’ meeting and the owners’ committee’s follow-up requirements regarding community property services And the decision, that is, whether the owners’ meeting decides that Vanke Property will continue to manage it or choose a new property company, Vanke Property will fully cooperate and support it.
Vanke Property said that after the announcement on September 13, some owners in the community have already proposed to stay, and Ningbo Vanke Property is actively communicating with the owners and government departments.
Vanke Property believes that sending silk banners has become a mockery of the property industry, which exposes the various contradictions and industry pain points accumulated over the years between the property owner and the property company. Because of the uneven quality of the property industry and the fact that the price limit of property fees has not changed for many years, different property companies provide different service standards according to their own circumstances, so the relationship with the owners is inevitably tense. This kind of contradiction has not been alleviated for a long time, and the pressure cannot be released, which has caused many people to have a negative and resistive sentiment towards the property industry.
In addition, the social status of real estate practitioners is”not high.” As a labor-intensive industry, for a long time, real estate has been labeled as having low barriers to employment, low education level of employees, and simple job skills requirements, etc. This has also made real estate employees regarded as having low social status from the perspective of the secular public. high.
Send the”pennant” mockery, and the deeper level is the diversified and complex service scenes, the problems of collective decision-making mechanisms, the problems of gray areas, and so on. Facing the pain points of these industries, the whole industry needs to think about solutions.
Vanke Property does not account for a high proportion of Vanke’s revenue, but people in the industry know that this is the leader in property management in China.
Vanke Property’s operating income of 12.7 billion yuan in 2019 is the industry leader.
Vanke’s financial data from previous years show that from 2015 to 2019, the operating income of Vanke’s properties was 2.97 billion yuan, 4.26 billion yuan, 7.127 billion yuan, 9.796 billion yuan, and 12.7 billion yuan, respectively. The operating profit margins were 17.38%, 17.22%, 16.18%, 17.44%, 17.96%, the corresponding operating profits were 516 million yuan, 734 million yuan, 1.153 billion yuan, 1.708 billion yuan, and 2.36 billion yuan.
The valuation of property companies is simply out of relationship with real estate.
Country Garden’s service revenue of 9.6 billion yuan in 2019 is just a fraction of Country Garden’s revenue. The current market capitalization of Country Garden is HK$212.9 billion, and Country Garden Property is HK$143.1 billion. The former has a P/E ratio of 5 times and the latter has a P/E ratio of 59.5 times. Country Garden Services is currently the property management company with the highest market value.
Poly Property’s operating income of 6 billion yuan in 2019, the current market value of 46.5 billion Hong Kong dollars.
The revenue of Ya Life Service in 2019 was 5.1 billion, with a net profit of 1.2 billion and a market value of HK$50.3 billion; Agile Group’s revenue in 2019 was 60 billion, with a net profit of 5.1 billion and a market value of HK$41.6 billion.
Basically, the market valuation of a property management company is more than 10 times its revenue. Based on this simple estimate, if Vanke Property is divested and listed, the market value will exceed 100 billion yuan.
At the Vanke media exchange meeting at the end of 2017, when asked about the listing process of Vanke Property, Vanke Property CEO Zhu Baoquan avoided talking about the topic,”This is a question that Vanke forbids to mention.” In December 2018, at the media exchange meeting in the southern region of Vanke, Yu Liang stated that “we deliberately keep the property sector away from the capital market.”
Yu Liang believes that”the property sector has the potential to reach a market value of 100 billion yuan in the future, and hopes to have the corresponding solid technical foundation and strength before discussing the issue of listing.”
“Listing requires short-term Performance and announcements are needed. Is their technology reaching very good? For Vanke, what is the meaning of adding 20 to 30 billion? There is no contribution, is it interesting not to make 100 billion? So our gap is 100 billion , It’s not a problem of two to thirty billion.”
In 2019, Vanke Property continued to actively expand its project resources and the annual saturation income of newly expanded projects (referring to the property service fee income for a complete year as agreed in the project contract) 5.406 billion yuan, a year-on-year increase of 33.13%. Among the newly expanded projects, the newly contracted area of residential property services was 103 million square meters, the new saturated income was 3.339 billion yuan, the newly contracted areas of non-residential property services were 18 million square meters, and the new saturated income was 2.066 billion yuan. As of the end of the reporting period, Vanke Property’s accumulated contracted area was 640 million square meters, a year-on-year increase of 26.1%, of which 450 million square meters of contracted area had been taken over and 190 million square meters reserved for the future.
In addition, in 2019, Vanke Property also established a joint venture company with DTZ to achieve a powerful combination of commercial property services and facility management. The “Urban Space Integration Service” model has been extended to Zhuhai Hengqin New District, Xiongan New District, Guangzhou Baiyun and Chengdu High-tech Zone. Vanke Property will undertake the local urban environmental sanitation, urban public green space maintenance, municipal infrastructure maintenance, comprehensive community governance, and public City management services such as resource management and management.