Rebirth of the Industrial Tycoon

Dongshan Real Estate Company, General Manager Ma Bin is reporting on the business development in the past period.

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

Dongshan Real Estate is backed by Dongshan Mining, which provides funds, and has certainly developed very rapidly. It has completed several projects in the past two years, making it 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 after a rain. Many companies that were not originally related to real estate have even set up companies to develop real estate in the hope of making profits.

More and more companies related to the real estate industry are turning to real estate. For example, construction companies, steel companies, cement companies, building materials companies, etc., which were originally in the upstream and downstream of real estate, simply established specialized real estate development departments.

There are also individuals who register a shell company without any qualifications. They can earn hundreds or tens of millions by finding connections to buy land and establish projects, and then resell the projects.

This is probably the most chaotic era of expansion in the real estate industry. However, disorder also represents opportunities. For speculators, this is a golden era everywhere.

In the real estate industry, the most indispensable thing is speculators!

After Ma Bin reported on the past business situation, he also talked about future work plans.

"Currently, several of our projects are progressing smoothly, but these projects are mainly in second- and third-tier cities in Shanxi and Shaanxi provinces, and their profits are far less than those in first-tier cities. So next we plan to develop into first-tier cities and strive to obtain several projects in first-tier cities. A piece of land." Ma Bin said.

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

Li Weidong first expressed his agreement, 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. The Beijing Olympics will be held this year, so land approval will be more difficult, at least it will be more difficult to obtain land this year.

There are many large-scale real estate companies in the Pearl River Delta region, including many powerful Hong Kong-funded companies. If we had gone through this, we would have encountered very fierce competition. So our target is Shanghai in the Yangtze River Delta region.

We have received news that Shanghai will release eight pieces of land intensively. If we can get one of them, it will be of great help to us to enter the first-tier city market. "

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

Ma Bin's book was very accurate. He immediately took out the information and handed it to the two bosses, Li Weidong and Zhao Jinshan.

Li Weidong was very excited when he saw the information about the first piece of land. The location of this piece of land was very good and it had great development value. If it were placed ten years later, it would definitely be out of print.

Looking at the second piece of land, the 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 pieces of land, until all eight pieces of land are seen, and they are all plots in very 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.

These high-quality plots of land are unthinkable in ten years. Even if similar land is released, it will definitely be a "land king" with a sky-high price.

Li Weidong knows very well that based on the future housing price trend in first-tier cities, the profits from developing these eight land plots into real estate will definitely be astronomical, and earning twelve figures will definitely not be a problem.

You don’t even need to look very far. After the country’s 4 trillion stimulus plan was introduced, the real estate market rebounded rapidly. By 2011, the original policies to stimulate real estate were canceled one after another, and first-tier cities even introduced purchase restriction policies. You can see See how hot the real estate market is.

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

"They are all good locations with great potential for development. If the shorter one takes three years, if the longer one takes five years, the housing prices of these plots will definitely rise. I guess I can just pick up any plot. You can make over one billion," Zhao Jinshan said.

Li Weidong chuckled. Although Zhao Jinshan had a business vision, he still underestimated the rise in housing prices in first-tier cities. Earning one billion from a piece of land was too conservative!

But it’s normal to think about it. In 2008, China’s economic aggregate had not surpassed Japan’s. How could people at that time have imagined that China would develop so rapidly in the next ten years, let alone that China’s housing prices would rocket like a rocket? rising.

When "Snail House" was aired, it aroused heated discussions in the society. The experiences of the protagonists in "Snail House" resonated with many people who bought houses. At that time, people were already complaining that house prices were too expensive. Many people thought that house prices had already become too expensive. To the ceiling.

However, the reality is that after watching "Snail House", those who imitate the protagonist and buy a house will definitely make a lot of money now!

So Li Weidong said, "Yes, you can make a lot of money from any piece of land. What if you only win one piece of land! You have to make a lot of money with less!"

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

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

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

Li Weidong discussed with Zhao Jinshan next to him: "If you eat eight pieces of land in one go, the financial pressure you will face is still quite big. The coal mine needs to increase its capital injection!"

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

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

Ma Bin looked troubled and said, "Chairman, to be honest, competition in the real estate market in first-tier cities has always been fierce. This time Shanghai has released eight pieces of land. Not only are we watching, but other real estate companies are also watching." They're all watching too!

There are too many companies participating in the bidding for these eight pieces of land that are stronger than us. Not only are the well-known domestic real estate companies, but also the major real estate developers in Hong Kong Island, they also see the future development potential of the Yangtze River Delta region. , want to develop the project.

Given our scale and reputation, if we put all our efforts into bidding for a relatively biased land plot, we may have a chance of success. If we bid for three pieces of land at the same time, we may not be successful, and if we bid for eight pieces of land in one go, it will be even more difficult. impossible.

This is not only a matter of funds, but also involves many other factors, such as the comprehensive strength of the company, the strength of past real estate development, the company's reputation, and even relationship factors, in which we have no advantage.

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

"Of course I know what you said, but it's up to people!" Li Weidong had a scheming smile on his face.

"Weidong, have you already thought of a solution?" Zhao Jinshan asked immediately.

"There is a way, but you have to nod." Li Weidong leaned into Zhao Jinshan's ear and whispered a few words in a low voice.

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

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

"That's right. The policies and resources that Shanghai can enjoy are unmatched by other cities. If you invest there, you should have no problem getting your money back." 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 try to copy it, we will be passive. After all, our strength is not as good as those well-known of large real estate companies.”

Li Weidong had a confident expression on his face: "Of course I still have follow-up methods. Don't forget that I started in the manufacturing industry. This is an advantage that those big real estate companies do not have!"

…

In 2008, China's real estate industry was still in the Spring and Autumn Period. Large, medium and small enterprises are spread all over the country, and there are a lot of them. The competition among enterprises is like that of other countries in the Spring and Autumn Period, with various enclosures and land grabs.

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

Except for the boss Vanke, the most powerful real estate companies are several companies with a background of central enterprises. For example, Overseas Development Corporation is a company controlled by China Construction Engineering Corporation; behind China Resources Land is China Resources Group; behind Poly Real Estate is Poly Group, etc.

At that time, many state-owned enterprises also invested in the real estate industry. State-owned enterprises had advantages in financing, so real estate companies under state-owned enterprises were also prosperous.

After the real estate giants with a central enterprise background, it was 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 cannot be underestimated in China's real estate industry.

The real estate industry on Hong Kong Island is relatively developed, and many of the rules of the mainland real estate industry are 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 have invested in projects in the mainland for a long time.

As early as the 1990s, Hong Kong-funded real estate companies such as Cheung Kong Holdings, Henderson Land Development, New Century, and Sun Hung Kai began to enter the mainland market. Novel real estate concepts such as shared areas, pre-construction properties, and mortgage housing were very important to the fledgling companies. As far as the mainland real estate market is concerned, it is undoubtedly a shock.

The strong capital reserves and the local welcome of investment also give Hong Kong-owned real estate companies sufficient capabilities to realize their ambitions.

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

Entering Shanghai is an important strategy for Hong Kong-funded enterprises. Between 1992 and 1997, Gangqi Real Estate acquired a lot of land in Shanghai. Hong Kong-funded real estate was obviously betting on Shanghai. The first batch of real estate companies crossed the Huangpu River and opened the " It is also those Hong Kong investment bosses who created the "Copy of Pudong New Area".

By 2006, the territory of Hong Kong real estate in Shanghai reached its peak. Six major Hong Kong 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 The center and Grade A office buildings are both operated by Hong Kong investors.

As the saying goes, great things must come true. The subprime mortgage crisis has reversed the real estate chessboard. Mainland real estate companies have developed rapidly. Many mainland real estate companies have also learned the business and operating models of Hong Kong-funded real estate, and they operate better. Hong Kong-funded real estate companies have Facing more intense competition, real estate companies have gradually begun to shrink their business.

After 2013, Hong Kong-funded enterprises have entered into a "sell, sell, sell" model. The most typical one is Li Chaoren of Cheung Kong Holdings, who sold off mainland assets for many years and cashed out hundreds of billions. The news at that time was often reported.

Foreign economists also used this to badmouth the Chinese economy, and the "China collapse theory" was hyped up again. Domestic netizens also said, don't let "Li" get away!

However, looking back a few years later, Hong Kong-funded real estate companies retreated purely because they could not compete with mainland real estate companies, so they had no choice but to cash out and leave as soon as possible.

When Hong Kong capital entered the mainland market, its first major advantage was abundant capital. With the rapid development of China's economy and the development and growth of mainland real estate companies, Hong Kong real estate companies have no advantage in capital.

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

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

This is not only the real estate industry, but also other industries. About 8% of foreign-funded 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 occupied the first place in the Chinese market in terms of market share. By 2015, there were still 57 companies that still had the largest market share in China, a decrease of nearly two-thirds in just five years.

Where have all these companies gone? Of course, it cannot compete with Chinese companies and lose the market.

By 2021, only seven foreign-funded companies can take the first place in the Chinese market in their market segments. They are IBM, Intel, AMD, Tesla, Apple, IKEA, and Coca-Cola.

It is estimated that by 2022, Tesla may be kicked off 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 land. All major real estate companies are eager to get this piece of land.

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

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

Since it is impossible to acquire all eight plots of land in one go, major real estate companies have narrowed their goals and strive to "guarante one and compete for two" or "guarante two and compete for three."

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

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

For another example, if the company bidding for a certain land plot is not very strong, then other powerful companies will consider joining in. If they get the land by chance, they will make a lot of money!

Some companies with relatively good relationships even communicated in advance and divided the cake among the eight pieces of land. When the bidding came, they would each look after their own affairs without interfering with each other.

…

During the pre-bidding briefing, bidding companies were required to send responsible persons to attend, so Ma Bin came to the scene in person.

The heads of the major real estate companies basically all know each other, and some of them are relatively familiar with each other. They have drank wine, eaten and played with swords together.

But on this occasion, not many people knew Ma Bin.

The scale of Dongshan Real Estate is not comparable to those of large real estate companies, and as it is a rising star, it rarely has the opportunity to participate in such occasions, nor can it make friends with the elders in the real estate industry.

But the appearance of Ma Bin's unfamiliar face still attracted the attention of many people.

"Which company does that group of people belong to? I don't think I've seen them before!"

"Yeah, I haven't seen it before either. It's a new face. Is there a major change in the top management of any company recently?"

"I haven't heard any news about this! And this person must be a newcomer. If any of us makes high-level changes, we won't use a new person!"

"Does 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 also seem not to have heard of it.

"Anyway, it's not our southern company. It should be your northern one!"

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

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

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

"It is really opened by a coal boss? Haha, a bunch of bumpkins, what do they know about real estate!"

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

"Maybe they are just here to broaden their horizons!"

A burst of mocking discussions.

As the saying goes, competitors are enemies. The competition in the real estate industry is already very fierce, and everyone will naturally exclude outsiders.

What's more, this outsider is a bumpkin who digs coal!