Analysis on the present situation and development trend of real estate industry

Main listed companies in the property service industry: At present, listed companies in the domestic property service industry include China Merchants Blow (00 19 14. SZ), Du Nan Real Estate (603506. SH), Country Garden Service (06098. HK), Greentown Service (02869. HK), elegant life service (033 19. HK) and Evergrande Real Estate. , color life (033 19. HK), Xinyuecheng Service (0 1755. HK), China Shipping Real Estate (02669. HK), Aoyuan Health (03662. HK), Hejing Youhuo (039 13. HK) and China Resources Vientiane Life Insurance (0 18).

The core data of this paper: China property management construction area data, China property management industry income data, etc.

Industry overview

1, industry introduction: contract system and salary system are parallel.

Property service refers to the maintenance, conservation and management of houses and supporting facilities and related sites, as well as the activities of maintaining environmental sanitation and related order in related areas. Generally speaking, property services include comprehensive management, maintenance and management of houses and facilities, maintenance of public order, cleaning services, greening management, decoration management services and parking management services.

In China, property service companies earn income from property management services. In addition, property service companies can also benefit from other value-added services, including consulting services, engineering services and community value-added services (such as operating public space, housekeeping services, real estate agency, pension and nursing services, etc.). ).

At present, China's property management fees can be charged according to the contract system and the gratuity system, among which the contract system is the mainstream charging mode, especially for residential properties. The contract system model improves efficiency by omitting some collective decision-making procedures related to large expenditures between owners and households; The incentive model is becoming more and more popular in non-residential properties, allowing owners to participate in property management affairs more deeply.

2. Development course: the industry has entered a period of diversified development.

In the early 1980s, with the implementation of China's national policy of reform and opening up, property management was introduced from Hongkong to Shenzhen. As the recognized birthplace of domestic property management, Shenzhen is the pioneer and promoter of the industry. During the development of the industry, it has created a number of firsts:1981March 10, 10 Shenzhen Property Management Company, the first professional foreign-related commercial housing management company in Shenzhen, was formally established, and began to implement unified property management for foreign-related commercial housing in Shenzhen Special Economic Zone, marking the beginning of domestic property management. 1On June 28th, 993, Shenzhen established the first domestic property management association-Shenzhen Property Management Industry Association; 1994, Shenzhen promulgated the first local property management regulation of Shenzhen Special Economic Zone.

Since the establishment of the first property management company in Shenzhen, the property management industry in China has gone through three stages: initial exploration period, integration and standardization period and diversified development period, as shown in the following figure:

3. Industrial chain analysis: the service content is constantly enriched.

The upstream of the property service industry refers to the supply of property resources, including building materials supply, communication and software services and various real estate development. At present, China's property services involve many types of real estate, including public properties such as houses and office buildings. Mid-stream property services include comprehensive property management, public order maintenance, cleaning services, greening management and other forms of services; The downstream of the industrial chain is the object of property services, mainly including owners and households.

In the upstream field, the representative enterprises of building materials suppliers are Conch, Oriental Yuhong, Beixin Building Materials, Follette and huaxin cement; Representative enterprises of real estate developers include Vanke, Evergrande Real Estate, Poly, Country Garden, Sunac China and Longhu Group.

In the midstream field, the representative enterprises of property service providers include Country Garden Service, Evergrande Property, Elegant Life Service, Sunac Service, China Shipping Property, Jinke Service, Greentown Service, Poly Property, Colorful Life, Jianye New Life, China Resources Vientiane Life, China Merchants Scratch Music and Xincheng Yue Service.

Present situation of industrial development

1. Overall situation of the industry: the management scale and benefits have reached a new high.

With the development of China's property management industry, property-related services provided by property management companies cover more and more fields, mainly including residential properties, commercial properties, office buildings, public properties, industrial parks, hospitals and so on.

Since 20 15, the construction area of property management industry in China has been increasing continuously. By the end of 2020, China's managed construction area has increased to 25.9 billion cubic meters, an increase of about 2 billion square meters.

From the perspective of industry income, the total income of China property management industry has been growing continuously since 20 15 years. By the end of 2020, the total income of the property management industry in China has increased to 623.2 billion yuan, a year-on-year increase of 9.6%.

2. Sub-business development: The proportion of diversified businesses continued to increase.

According to different business types, the income composition of China's property service industry can be divided into basic service income and diversified business income, among which basic service income is still the main source of business income of China's property service industry. However, in recent years, with the diversified development of China's property service industry, the proportion of diversified business income consisting of community value-added services and non-owner value-added services has continued to increase. Since 20 17, the proportion of diversified business income in China's property service industry has increased since 20 17.

Specific to a variety of business areas, property companies basically follow the principle of developing non-owner value-added services with clear profit model and stable income sources, and gradually expand community value-added services with rich business content. In 2020, the non-business value-added service income of the top 100 enterprises will account for 54.9 1% of the total multi-business income, of which case service will account for 33.17%; The former referral service accounts for 10. 1%.

3. Cost composition: the labor cost is monopolized by half.

A comprehensive analysis of the operating costs of property management enterprises shows that manpower, materials, energy and management costs are four important factors, and they are also essential rigid costs to maintain the operation of property management enterprises, among which manpower costs account for the largest proportion. Therefore, in order to build the low-cost operation ability of property management enterprises, we must start with strengthening internal management, improving organizational efficiency, using science and technology to improve labor productivity, taking effective measures to save energy and reduce consumption, and form an effective mechanism and system to form the comprehensive application ability of organizational costs.

In 2020, the average operating cost of the top 100 realty service enterprises was 886 million yuan, up by 12.07% year-on-year, of which labor cost accounted for 58.32%. Although it has decreased compared with the same period of last year, overall, the proportion of labor costs is still far ahead of other costs. Optimizing the personnel structure and reducing the labor cost scientifically and reasonably are still the main problems faced by property service enterprises.

Industrial competition pattern

1. Regional competition pattern: first-tier cities are the most mature.

From the perspective of regional layout, the development of property services in China is still concentrated in first-tier cities and key urban agglomerations. In 2020, nearly half of the building area managed by China Top 100 Property Services Enterprises will be located in Guangdong, Hong Kong and Macao, the middle reaches of the Yangtze River, Chengdu-Chongqing and Beijing-Tianjin-Hebei, with the Yangtze River Delta accounting for 19.35%, temporarily ahead of other regions.

2. Competition pattern of enterprises: Head enterprises are gradually emerging.

In April, 20021year, the Central Reference Institute and China Real Estate TOP 10 research group released the Top 202 1 China Property Service Enterprises 100 Ranking, in which the specific ranking of the top ten enterprises is shown in the following figure:

Specific to the construction area under management, there will be five property management buildings with a construction area of over 300 million square meters in China in 2020, among which Country Garden Life ranks first with a construction area of 463 million square meters; Evergrande Real Estate and Greentown Real Estate followed closely, with management floor area of 380 million square meters and 374 million square meters respectively.

With the development of China's property management industry, property-related services provided by property management companies cover more and more fields, mainly including residential properties, commercial properties, office buildings, public properties, industrial parks, hospitals and so on.

According to the development situation of the top 100 property management enterprises released by Central Reference Institute, the building area of the top 100 property management enterprises in China has increased rapidly since 20 15, and in 2020, floor-area ratio, the top 100 property management enterprises in China, doubled in 20 15 to 129 billion square meters. At the same time, the proportion of the building area managed by the top 100 enterprises in the national property management building area continues to increase, from 28.6% in 20 15 to 49.8% in 2020.

As for the top 100 enterprises, since 20 15, the income of the top 100 property management enterprises in China has increased rapidly. In 2020, the income of the top 100 realty service enterprises in China increased nearly three times compared with 20 15, reaching 309.8 billion yuan. At the same time, the proportion of the income of the top 100 enterprises in the total income of property services in China continues to increase, from 28.5% in 20 15 to 49.7% in 2020.

Prospects and trends of industrial development

1, the market scale is low.

In the short term, the accelerated completion in the next two years will bring incremental market dividends. From the second half of 20 16, the transmission time from new construction to completion shows signs of lengthening. After two consecutive years of decline, the growth rate of completed area began to pick up in September 20 19, so the completed area accumulated in the past 2-3 years is expected to be released in the next two years, and the contracted area of property management industry will rise rapidly in the short term, so property enterprises can still enjoy short-term incremental market dividends.

In the long run, the real estate market in China has matured for many years, and the property management industry will enter a golden age. Property service industry is a defensive sector with great investment value under the fluctuation of economic environment and market environment. Its rapid development is not an investment behavior, but the service industry has stronger anti-cyclical ability and more development prospects than local industries.

Considering the development prospect of China's property service market, China's property service industry will still maintain a low growth trend. By 2026, the scale of the national property service market will be close to one trillion yuan.

2. internet plus has injected new vitality into the development of the industry.

In the traditional management mode of property service enterprises, the investment of human resources is large and the maintenance cost of facilities and equipment is increasing, which makes the income and expenditure of property service enterprises unbalanced and seriously restricts the development of property service enterprises.

Judging from the current development trend, we should integrate "internet plus" into property management, optimize and improve the service management mode, compress human resources and enhance the management effect. In the process of residential district project management, we should make full use of Internet technology, optimize and improve the management service mode, improve management efficiency, strictly control costs, and promote the rapid development of property service enterprises.

The operating products of traditional property service enterprises are relatively simple, which can only meet the needs of a small number of owners, but for most owners, it is still not comprehensive enough. Therefore, the property service enterprises combined with Internet technology should establish a relatively large data platform to expand their business products according to the needs of owners. In the process of expanding business products, we should meet the needs of owners or users in many aspects, such as food, clothing, housing and transportation, and ensure that the products launched can be welcomed by owners. At the same time, employees should also guide customers' needs, so that customers' needs can be gradually transformed into owners' needs, and then expanded into enterprise products. Establishing a big data service platform can not only provide owners with more convenient and comfortable services, but also provide greater profits for property service enterprises.

For the above data, please refer to the Analysis Report on Business Model and Market Investment Strategic Planning of China Property Service Enterprises by Prospective Industry Research Institute.