China's first agency building model was confirmed to have a 35% lower price than similar models

The reporter learned from an interview in Xuchang City, Henan Province that the first residential community operated by the market and developed by individual entrusted agents will be completed and delivered for use by the end of September this year. In the 78,000-square-meter building area, the construction target is mainly targeted at middle and elementary school and kindergarten teachers in middle and low-income urban areas. The average housing price is 35% lower than that in the same-class market, compared with the weak real estate sales market. When the community started construction, the houses were almost completely booked and quickly activated the housing of low-income urban residents. During the interview, some experts believed that this new development model is a useful exploration of building a diversified real estate market, and to a certain extent, it has played a role in solving the people's livelihood problem by the market and is worth encouraging.

“Civil Real Estate” is popularly welcomed as a residential community developed under the “private agency” model developed through a personal commissioned agency model. Because the price is far below the average market price, it is even lower than the average price of some affordable housing estates in the region. "Civilian Real Estate" is very popular with the urban middle and low income groups.

The Health Road Elementary School teacher Song Xiaojun was the first participant in the project. He said: “I looked at the house for five or six years and finally bought a house that I could afford.” He said: “I’m from 2004. From the beginning of the year onwards, the higher the price, the more you can't afford it, you can't afford it, you have worked for more than 10 years, and you have lived with your wife, children, and the elderly in less than 50 square meters of houses.This time I chose a set of 120 About 2 square meters of the house, the total price of 200,000 yuan, a lot cheaper than the commodity housing, I took out all the savings of 100,000 yuan to pay the down payment, and later rely on loans, this model is particularly suitable for us."

The reporter learned that this community was started in September 2009 and was developed in three phases. There are 12 multi-storey and four-storey high-rise buildings. By June 2011, 12 multi-storey and 456 suites have been completed and the occupancy rate reached 71. %; The four small high-level executives completed the work by the end of September this year. The housing area of ​​the community is between 80m2 and 140m2, with 80% of small and medium-sized units.

In terms of price, the multi-storey average price of this residential area is 1600 yuan, which is far below the market average price of around 2,700 yuan. As a result of factors such as rising raw material prices in recent years, the average price of the small-storey building has risen from 2,157 yuan to 2,391 yuan. However, it is still far below the average market price of 3900-420 yuan for the local high-rises.

This community is located in the old city of Xuchang City. The location is not remote. There are two elementary schools and two middle schools nearby. The area is an advantaged educational resource; nearby hospitals, supermarkets and other living facilities are complete. Among the purchasers of households, there are about 230 households in the urban area, accounting for about 30% of the total. The rest are mainly local employees with low income.

Zhao Ming, a primary school teacher in Weidu District, Xuchang City, said: “I heard about this project. After I went home to discuss the next day, I paid 50,000 yuan in advance, which is a price I normally see at 2-3 yuan per square meter. The real estate is much cheaper than the others.” He said that he had to raise funds to build houses as early as several years before he took part in the work, and that he could only buy commercial houses in the future, but the couple’s monthly income was not enough to buy one square meter. There are many colleagues like myself, and basically all live with the elderly. Actually, the agency Building Model like this has a certain charity nature. Everyone welcomes it.

Fully-disclosed-cost-earning-in-principle-initiative-construction of individual commissioned agents in Xuchang City to build houses using dual-company operations, namely the implementation of two companies, Huimin Real Estate Agency and Huimin Real Estate Development Co., Ltd., and individual organizations with housing needs and voluntary participation in building houses. As a result, all costs were fully disclosed to participants, and the company made profits by charging agency service fees that were set in advance.

Yang Jincheng, the person in charge of the company, said that there is a huge market space for low-income housing in the city, but the biggest obstacle is housing prices. After the establishment of the company in 2007, it was decided to develop for the middle and low-income groups and the model of building houses based on agents. In the first land auction in 2007, a total of more than 2,000 people signed up. There were 1,097 teachers in the light. There were also scenes of overnight bookings of room numbers. Within 3 days, they received pre-submission home loans 2000 yuan. More than ten thousand yuan. However, due to the high price of land auctions, it exceeded the company's commitment of not exceeding 1,350 yuan per square meter for the customer's price, and then gave up the auction.

After 2008, the developer who had won the land raised grounds for the government because of high land prices and market sluggishness. After consultation and consultation with the government, with the active support of the Xuchang Municipal Government, Huimin Company formally took over this piece of land. Due to the failure of the first bid, only 357 people pre-paid for the construction of the house, but as the project is really implemented, many customers come to pre-delivery building to make a reservation in advance.

One of the core elements of the agency building model is that the cost is completely open and the profits are limited in advance. Yang Jincheng said that the company and each participant signed a contract to fully disclose the cost of each component and the calculated price per square meter to the participants, and agreed to set the company's agency service fee at 7%. At the same time, a 11-member monitoring group composed of participants was established to supervise the project progress, project construction, and fund payment. Compared with the traditional real estate development model, this model has no sales department, no advertising expenditures, no reliance on loans, and the profits are limited in advance, so that such projects can achieve affordable real estate.

The former director of the Weidu District Education and Sports Bureau, Song Yunfeng, said that the project has more than 100 teachers in the district education system. It should be said that it has played an important role in solving the problem of teachers' housing difficulties. After the abolition of fund-raising and housing construction, the company had contacted several developers for group purchases in response to teachers’ difficulties in housing and loud calls from the masses, but the prices were still unacceptable. This time many teachers participate in the construction of agents because the cost and profit of this model are transparent, and the price is acceptable compared with the teachers' income, and they can participate in the project quality and fund supervision. The masses are very welcome. It also does a good job for the middle and low-income groups.

The huge market space has become more mature. According to Huimin’s market research in over 40 units in Xuchang City, there are more than 10,000 people who voluntarily participate in this model building intention, mainly divided into three types of housing needs, namely : Self-supporting, improved and rural migrant workers. Yang Jincheng said that most customers cannot afford commercial housing, and they cannot enjoy low-cost housing and affordable housing. According to our sample survey, this type of demand accounts for about 65% of the city's housing needs, and the demand potential is huge.

The reporter learned from the interview that the mode of individual commissioned agency construction was derived from individual cooperative construction. A few years ago, personal cooperative construction had aroused widespread concern in the whole society. More than 50 cities had established individual cooperative housing establishments, and joint consumers were preparing to develop and build affordable housing. However, they eventually disappeared. Xu Chang’s personal agent-based agent building model also organizes and voluntarily participates in the construction of houses, develops and constructs affordable housing, but solves the problems of the legality, standardization, and lack of professionalism of individual cooperative building.

The mode of individual commissioned agency construction draws on the strengths of “customer front-end” for individual cooperative building, namely, firstly engaging in market demand investigations, locking customers in advance, and drawing on the standardized operation methods of real estate development companies’ corporatization operation, but different from most of them. Real estate development enterprise operation mode.

In terms of business methods, real estate developers build commercial houses that are self-constructed, self-pricing, self-operating sales, and customer rear-ends; and individual entrusted agents building houses are front-end customers, that is, prearranged customers in advance and entrusted by them, according to Their wishes and requirements are to design houses, negotiate agreements in advance to build house prices, and pre-agreed on the proportion of agency service fees collected. The cost of building houses is fully open and public, and it is agency behavior from beginning to end. In terms of capital investment, the developer invests in development and construction on its own. Acting as an individual building house is an act of acting as an agent to build a house based on the need of the consumer of the house as the main investment, and from the design to the construction, it is necessary to fully listen to the opinions of the consumers who need housing, and the whole process of building a house. Under the participation and supervision of consumers who need housing.

In the management of funds, the method of “mutually co-management, openness and transparency” is adopted. That is, each person’s pre-delivered housing construction fund is composed of the agency company and the representative of the investor’s representative to form a housing construction supervision group, and a pre-existing fund account is opened at the bank. The bank reserved the seal for branch management. When the funds are used, the parties can use the funds only after they jointly sign the application for the funds. And the bank participates in fund supervision to ensure the safe management and use of funds.

In November 2011, another project of the Liuhe Garden Development project using agents to build houses in Xuchang officially started. This area covers an area of ​​106 acres, has 13 high-rise communities, a total of 1350 suites of sources, including 1200 sets of Huimin company's personal commissioned agency model development, the average housing price is only 2760 yuan, while the same high-rise residential market prices Around 4300 yuan, all have been set.

Yang Jincheng said that this mode of operation has become more mature and standardized. The core issues of all aspects, especially the use of funds management, are under the supervision of laws, regulations, and participants; the reduction in marketing advertising and sales services has greatly reduced. The management costs and costs are conducive to the stabilization of housing prices, and the development of real estate has taken place in a multi-system, multi-mechanism, and multiple-model approach. It has also reduced the excessive dependence of real estate development companies on bank loans.

Yu Xinan, dean of the Henan Provincial Academy of Social Sciences, believes that this new development mode has changed the current monopoly of the real estate development model, and will help market forces make the real estate development market return to rationality. Suppression of real estate prices, on the one hand, requires the implementation of relevant policies in place; on the other hand, it also requires new market players, new development models, and the cultivation of diversified market forces.

In order to protect the market-oriented operation of the housing industry, some experts believe that this mode of development, through fully market-oriented operation, has reached the goal of building a government-guaranteed housing project to a certain extent, enriching the supply of low-end residential housing, and helping to stabilize housing prices. The activation of demand for home purchase by the middle and low-income groups has a positive effect and it is worth learning and promoting.

In recent years, the phenomenon of the allocation of affordable housing has become more frequent. Some cities in Henan, Guangdong, Hubei, Hebei and other provinces have experienced a phenomenon of “oversupply” of affordable housing. The sales ratio of many properties is less than half, and even only one or two percent. . In Zhengzhou, Wuhan and other cities, the first batch of public rental housing also suffered from market downturns. Zhang Jinbo, an associate professor at Henan University of Economics and Law, believes that this reflects that it is difficult for government forces alone to meet diversified market demands. In particular, housing needs involve transportation, education, and medical care. The construction of affordable housing is a government-supported benefit project. However, this does not mean that the government should completely implement it, and it should also consider how to activate market forces to solve the problem.

Gu Jianquan, vice president of the Henan Academy of Social Sciences, and other experts believe that, compared with Xuchang’s personal commissioned agency building model, it is a useful exploration to solve several difficult problems faced by affordable housing. The first is to effectively reduce housing prices, freeing the government from the issue of proper housing construction, distribution, management, etc. Secondly, it strengthens transparency and ensures quality with the participation of buyers. In addition, supply and demand are directly linked to eliminate the property bubble. . This has important reference significance for advancing the market-oriented operation of affordable housing, especially in the secondary and tertiary cities with large potential for development.

On the other hand, some local cadres believe that people in this mode are very welcome, indicating that it is very viable. As a useful exploration, it needs to be continuously matured in practice. The government should also provide strong support; but at the same time, The current real estate development model has conflicts. The main reason is that the conflict of interests is too great. It also makes local governments particularly cautious about supporting and promoting. In addition, it is also a big challenge to whether successful licensing can be achieved at an acceptable price in the land auction market. .

Some scholars and experts have suggested that the government should give certain policy support for similar low-profit real estate development model innovations. It can even be considered as a preferential policy for affordable housing, such as urban accessory fees, wall reform funds, and electricity support fees. Relief is granted on administrative fees. In terms of taxation policies, we will clear up some projects that are actually tax-paying and put the existing preferential VAT policies in place. Under the cost-effective development model, these policies will also push prices down considerably. On the other hand, it is recommended that the government give support in terms of land supply, for example, it can adopt the method of land price allocation, or it can be supported in a targeted manner. At the same time, it is recommended that relevant departments strengthen their attention to similar new development models and give guidance and help.