10 ministries issued a document to standardize community management. Why is the property management industry facing the wind again?

The real estate industry once again ushered in the investment window.

On October 5th, 65438/kloc-0, the Ministry of Housing and Urban-Rural Development, the Central Political and Legal Committee and other departments 10 jointly issued the Notice on Strengthening and Improving Residential Property Management (hereinafter referred to as the Notice), which involved six aspects: grass-roots social governance, improving the owners' committee, improving the service level of property management, promoting the life service industry, standardizing maintenance funds and strengthening supervision and management.

Affected by this news, real estate stocks ushered in a collective outbreak after more than half a year of silence. As of the close of 65438+1October 6, * * 2 1 A+H real estate stocks rose more than 10%. Yin Cheng Life Service led the gains, closing up 39.53%. Real estate stocks such as China Shipping Property, Shimao Service, Jianfa Property, Poly Property, Xincheng Yue Service and Yongsheng Life Service all rose more than 20%. Why did the Notice trigger a general rise in real estate stocks across the board? What changes will favorable policies bring to the property management industry?

It is clear that the collection rate of responsible property management fees will increase.

Property management has always been a field with high cost and low income. Especially in recent years, with the gradual decline of demographic dividend, labor costs continue to rise, and the profit space of property companies is further compressed.

Correspondingly, the collection rate of property fees, which is directly related to the survival of property management companies, usually cannot be guaranteed to reach 100%, and property management companies still generally face the problem of difficult collection, and even become a bottleneck restricting the development of the industry to some extent.

In order to solve the difficulty of collecting property fees, it is very important to establish effective contact with the owners. A major pain point in the property management industry is the low penetration rate of owners' committees. In the past, property management mainly relied on the company's "output" to achieve the effect of "service", but the "interaction" with the owners was not very hot.

The "Notice" points out "improving the governance structure of the owners' committee", emphasizes the responsibility of street management, and encourages the streets to intervene and guide the property management work in the jurisdiction. It is expected that the proportion of industry committees (or temporary replacement of property management committees) will be significantly improved through organization. This may arouse the enthusiasm of owners, establish a coordinated operation mechanism among residents, industry committees and property management companies, help enterprises understand the demands of owners, break through the obstacles of "employment relationship" between owners and property management companies, promote the transformation of "unilateral export" of property management companies to "interaction" with owners, and help improve the collection rate.

Moreover, the "Notice" is also committed to clarifying the positioning and operation mode of the owners' committee. One of its duties is to urge the owners who are in arrears with property fees, and at the same time explore the inclusion of malicious arrears of property fees in personal credit records, which will also have a positive impact on the collection rate of property management companies and the improvement of the efficiency of basic property services.

In terms of market-oriented pricing of property enterprises, the Notice points out that it is necessary to improve the price formation mechanism of property services, improve the level of property management services, and advocate charging by fee. Moreover, all departments have a division of labor: the housing and construction departments should publish a list of property services and clarify the contents and standards of property services; Property industry associations shall monitor and regularly publish information on the cost of property services and pricing rules for the reference of owners and property service enterprises when negotiating property fees.

Guo Sheng Securities Research Report pointed out that in the past, the market was worried that rising labor costs and stagnant property fees would affect the profits of property companies. The erosion of the profit rate of real estate companies also affects the real estate valuation in the capital market. The "Notice" issued this time opens the market-oriented adjustment channel of property fees from the policy orientation. The research report of CITIC Securities also stated that the "Notice" will bring the property industry into grassroots governance, which will raise the single profit curve.

Benefiting from value-added services and expanding Matthew effect will continue.

The income of property enterprises mainly has two sections, one is basic property services, and the other is value-added services. However, according to the data of the Central Reference Institute, the top 100 property companies in China still mainly provide basic property management services, with more than 80% of their income coming from traditional basic property management and only about 20% from value-added services.

In fact, due to the current competitive pressure of residential property, it is often difficult to make a profit by relying on conventional operating income, and it is necessary to work hard on value-added services. According to the annual report of listed real estate enterprises, Yiju Research Institute found that the gross profit margin of most listed real estate enterprises' property management services is around 1 1% to 30%, while the gross profit margin of value-added services generally reaches the range of 30% to 60%.

The proposal of the Notice clearly extends the business scope of value-added services of material enterprises. On the one hand, we encourage qualified property service enterprises to extend to the fields of pension, child care, housekeeping, culture, health, house brokerage, express delivery, and explore the "property service+life service" model. On the other hand, it also said that "property service enterprises can apply for corresponding preferential support policies and carry out life services such as pension and housekeeping."

The purpose of guiding enterprises to extend to many fields is obvious. Yan Yuejin, dean of Shanghai Yiju Real Estate Research Institute, said that supporting the elderly is based on the advantages of the entity's familiarity with the community, which helps to provide services conveniently and at low cost and truly serve everyone in the community. Community consumption involves the concept of big consumption, and property enterprises take the initiative to undertake such business, which is helpful to truly broaden the business content and realize the value-added of community services. As for the development of housing brokerage and subsequent similar leasing business, it will have a greater impact on revitalizing the stock market.

In addition, it is worth noting that the relevant documents issued by the Ministry of Housing and Urban-Rural Development have repeatedly mentioned the development of online and offline life services and supported property companies to explore old-age services. For example, in 2020, the Opinions on Promoting Property Service Enterprises to Develop Home Community Care Services issued by six ministries and commissions, including the Ministry of Housing and Urban-Rural Development, mentioned "promoting and supporting property service enterprises to actively explore the' property service+care service' model". "Notice" can be seen as a systematic combing and further emphasis and deepening of the spirit of the previous documents, once again pointing out the development potential of the current property management industry.

In the future, value-added business will become a new growth point actively explored by all property enterprises. Property management companies with higher community value-added services will have more advantages, and the Matthew effect of the industry will continue. For example, Zheng Rong Service, Greentown Service, Xinyuan Service, Shimao Service, Yongsheng Life Insurance, Poly Property, Jianye New Life, Yin Cheng Life and other community value-added services all account for a high proportion, accounting for more than 25%. Among them, property management companies with a certain scale and high owner satisfaction and real estate companies related to the pension industry will also benefit first.

In short, the core content of the Notice mainly involves two parts: improving the mobility of owners and encouraging value-added services. The former improves the possibility of a single profit model, while the latter is expected to accelerate the exploration of value-added services by property management companies, enhance their profitability, and further play its role as a platform and traffic portal, which is in line with the status quo of "laying the foundation with traditional property management business and icing on the cake with value-added services" in the property management industry and provides a broad imagination space for the property management industry.