Chapter 479: Novelty Ideas and Special Requirements

As we enter June, the temperature rises all the way, and by the middle of the year it is already extremely hot. Gan Ruolan has always been thinking about taking her children to the sea to take a bath, but when she saw the hot weather, she couldn't help but propose to her husband to take her son to Haizhou to play.

Geng Wenyang happened to be going to Haizhou to inspect the operation of the real estate company, so he agreed and chose a weekend to drive a Cherokee and rushed to Haizhou with his wife and son.

The last stay at the Haizhou Hotel felt very good, so this time Geng Wenyang still chose to stay here. Moreover, Haizhou Hotel is only one street away from the first beach, and it is quite convenient to go downstairs to the beach to take a sea bath, saving a lot of time to hurry. c

Gan Ruolan took her children to play in the beach, and Geng Wenyang drove into the car to the real estate company to meet Lin Yun and Xu Wenjie.

Sihai Fuxiang Real Estate Company is located downstairs from the construction company. The two companies, one on the 20th floor and the other on the 19th floor, can be easily accessed by just two flights of stairs.

After the three of them came to the general manager's office for a little greeting, Lin Yun reported to him: "Mr. Geng, the preliminary procedures for the residential community cooperating with the TV factory have basically been completed, and now the construction company is organizing to work overtime to catch up with the schedule, and it is estimated that it will be completed and sold by the end of September."

"What?" Geng Wenyang wondered, "You didn't carry out sales work in the early stage?"

Lin Yun was surprised: "How can I sell it out before the house is finished?"

Geng Wenyang said: "You can sell off-plan properties after getting the pre-sale certificate."

"I know that after I get the pre-sale certificate, I can go to the off-plan house." Lin Yun insisted: "But I think there is a certain risk of selling the house before it is finished, and it is safer to sell it after it has been built and accepted."

Xu Wenjie said on the side: "Mr. Geng, I proposed to Mr. Lin the plan of selling off-plan houses first and recovering the funds by the way, but Mr. Lin did not agree."

Lin Yun defended: "We have sufficient funds and do not need to engage in off-plan sales. Our people still like to spend money to buy the building after it is built, otherwise people will not be at ease."

At the end of the 90s, the real estate market in China's second- and third-tier cities had just begun to be a little dynamic, and the people who did not have much spare money in their hands paid more attention to the sale of existing houses, and there were not many people who could accept pre-sale of off-plan houses.

Any sales strategy is inseparable from the environment of the times, otherwise it will lead to the failure of the south orange and the north orange to adapt to the soil and water.

Geng Wenyang bowed his head and said, "What Mr. Lin said is right. Our people still like to see real buildings, so they are willing to pay for them."

Lin Yun couldn't help but feel a little proud when he saw that Geng Wenyang agreed with her point of view. However, Geng continued: "However, just as things always evolve, as the real estate market gradually becomes popular, off-the-plan sales strategy is the only way for a qualified real estate company to take."

Lin Yun was puzzled, "Why? People won't buy a house if they can't see it."

"Didn't I say that everything is constantly evolving." Geng Wenyang persuaded: "Nowadays, ordinary people can't accept buying off-plan properties, but when the real estate market is booming, they will gradually accept it. Because off-plan properties are much cheaper than existing ones."

He paused and said, "For our real estate company, the development of off-plan pre-sale to a certain extent is life and death."

"Huh?" Lin Yun was a little incredulous and said, "How is it possible?"

Geng Wenyang patiently explained: "At present, the cost of building a house mainly depends on the rise and fall of the price of steel and cement, which are the most used, but in the future it will depend on the price of land."

"Land price?" Lin Yun was even more surprised.

"Yes!" Geng Wenyang said: "The land we get now is only tens of thousands of yuan per mu, but in the future it may reach hundreds of thousands of acres, and then one acre of land may even be sold for several million acres."

"At that point, the proportion of land prices converted into the cost of housing will increase." Geng Wenyang said: "Before the house was built, it cost hundreds of millions of yuan just to buy land. After we get the pre-sale certificate, we can get the money back from the sale of off-plan properties to repay the loan, or use it for subsequent building construction."

He saw that Lin Yun seemed to have an understanding, and then said

"If we don't sell off-plan properties but only sell existing houses, when the construction period comes, there will be a lot of pressure on loan repayment and follow-up funds. Once the capital chain is broken, not only will the project be unsustainable, but the company's survival will also be affected."

"So......," he concluded, "for the real estate companies of the future, off-plan sales are a necessity to survive, and sometimes it can be the difference between life and death."

Xu Wenjie took the opportunity to interject: "There is another advantage to the sale of off-plan housing, you can start the project with a small amount of start-up capital and loans, and the follow-up funds are all supported by the return from the sale of off-plan housing. In this way, the company can start several projects at the same time, and it can become bigger and stronger in a short time."

Lin Yun was a veteran of fighting the Shang Sea, and Geng Wenyang understood the truth with a slight pinch of her, and took a cool breath and said, "There is also a lot of risk in doing this. Once the pre-sale is not good and no other source of funding can be found, the project will have to be stopped."

"Yes! You're right." Geng Wenyang thought of the many unfinished buildings in later generations, and couldn't help but sigh: "Therefore, pre-sale off-plan housing is a double-edged sword, and if you don't do it well, it will hurt the developer itself."

He also reminded, "I think the first phase of the Sihai Fuxiang Community is all six floors. This is not possible, the plot ratio is too small, and the profit we get is too low."

Lin Yun explained, "At present, the most popular real estate market in Haizhou is the five- to six-storey multi-storey residential buildings, and the small high-rise buildings with more than ten floors are not very acceptable."

Geng Wenyang said, "What we pursue in real estate development is profit margins. The floor area ratio of a real estate project is the profit margin, and the higher the floor area ratio, the higher the profit margin. Therefore, our subsequent development projects must take the high-rise route, focusing on small high-rise and even high-rise residential buildings."

"This ......?" Lin Yun was worried, "I'm afraid that the people won't accept it, and the house won't be sold!"

"It's up to us to advertise." Geng Wenyang inspired: "What are the advantages of high-rise over multi-storey?"

Lin Yun pondered for a while and said, "Live high and see far."

"Yes!" Geng Wenyang approvingly: "Just make a fuss about this. Looking at the mountains and seeing the sea from afar, this slogan alone can arouse the desires of home buyers."

"You can see the sea from afar!" Lin Yun suddenly remembered that the office building they were in was not designed like this? At the beginning, she took a fancy to this place, precisely because of the good view and better scenery.

Geng Wenyang added, "In addition, the greening of the community should not only plant trees, but also have a unique landscape design. I won't say much about this, and then you can discuss with the relevant garden design unit. However, I would like to ask that each community under our company has its own characteristics. When people enter the door, they know that this is a community developed by Sihai Fuxiang Real Estate Development Company, so that the people can remember the name of our company imperceptibly."

At present, the greening of Haizhou residential area is basically planting some trees and flowers, and I have not heard of any special garden landscape design.

Geng Wenyang's special request made Lin Yun fall into deep thought......