Appeal to the relevant government departments so that the land market more open and transparent
visit New York, London, Harvest and Inspiration
the real estate market is filled with the smell of gunpowder, how do you think the domestic real estate market?
Pan Shiyi: Zhang Xin, I went to the U.S. and the UK study, Zhang Xin, I had to go more than two weeks. We mainly on the New York and London real estate market. this study we learned a lot, but also gave us a lot of inspiration from which to learn a lot of knowledge and experience.
First of all, by the financial crisis, the two cities of New York and London The real estate market is sluggish, low prices, especially prices of office buildings and shops. Many of the house price even lower than the cost of its Jian, which estimated that the land value of these houses is almost zero, the market turnover is also less. New York, the turnover volume is even less than London. We saw some in New York and London offices, the company goes bankrupt, financial institutions moved, safes, office furniture are not, and folders, and various boxes all over the place, very embarrassed.
Second, under the influence of the financial crisis, the more high density buildings areas, such as New York's downtown Down Town, which is located on Wall Street, the situation is the worse. London City, Canary Wharf Canary Wharf, the new financial district, CBD, and also the same downtown Manhattan. situation is relatively good area, is 57-58 on the island of Manhattan Street, Sixth Avenue to Park Avenue, the four streets and became a little square. In London, it is better to west end.
by the financial crisis the more intensive office areas such as New York City Down Town under the circumstances, the worse
in this study period, very grateful to Richard Ellis (CBRE) Global President of the detailed arrangements for us to do. He made his New York and colleagues in London provides us with a great deal of market information and a lot of us around the building. These buildings are basically bankrupt developers, because they have exhausted the equity capital. ownership of building in the lending bank and Fund's hands. I went through like, a few thoughts to share with everyone:
First, the financial crisis on the global economy, especially the impact of the financial industry far more than the newspapers and see on TV message much more serious, because these Why not become developed, we are not optimistic about? I asked the developers to iron Lions Gate American boss, I asked is not subject to the the question whether the integration of the property. In Midtown Manhattan, Park Avenue, there is a large train station, all the work, the traffic is very convenient; followed all the properties to fusion, have both lived in the region, but also have office , a hotel with shops and so on. but just a simple office building downtown, which is difficult to develop. very important lessons that we in the Chinese real estate development, we must learn from these lessons, as quoted in that commandment. in the choice of location, facilities selection of property products is very important. London and New CBD --- Canary Wharf Under New York City is basically the same, this is a warning.
Third, these countries in any case is always better than we have money, furniture, computers, safes are not, and this can not happen in China. always someone to go with the aftermath, to put these things to sell, dispose of.
only to China's real estate market, Beijing real estate market on the global context, we can see more clearly, only to jump out to see more clearly, less guilty of fear of confinement, During the day I have received co-workers sent to the company's sales and rental data. normally I only look at home, but in the U.S. and the UK, I repeated back to them, give them encouragement. These data SOHO China, the company proved that the efforts of all colleagues, but also proved that Beijing and New York and London compared to the vitality of the market.
SOHO value of land bank can not simply measured by the number of
Wen Wei Po, to the situation known as the land bubble. In today's money more oncoming real estate market, the more violent state-owned enterprises, may I ask what is your view?
Pan Shiyi: Guangqu visit went. I was in line to see some of your discussion. which is the Ministry's point of view: a The total sale price is not increased, but in the fall.
The main reason appears to the king of these large state-owned enterprises in the current context, it is easy to obtain funds, the cost is very low. and they have long been engaged in the trade as a result excess capacity, has been unable to invest to expand production, invest in the land of their target market and the real estate market, this is their last resort option. But the land into sales and profits, which requires specialized knowledge, you need experience, need to grasp and understanding of the market. newly formed company into the real estate field, often by mistake. The sudden transfer from other sectors of the large state-owned real estate industry, real estate companies to be especially careful that, in order to avoid social wealth a huge waste.
see today, the sake of the lives of others. The market is also the same reason, some companies for short-term interests in the manufacture of foam, in the long term will break the bubble.
The article said: SOHO China faces Conservative?
Pan Shiyi: I have seen this report, which is written by a trainee journalist Liu Debing articles. the reporter on SOHO China's basic situation is not understood, nor have we conducted interviews. This article also joined in the plot of their own imagination, like writing a fiction.
SOHO China's future now more than 300 billion yuan of property available for sale, more than 10 billion yuan in cash. and these properties are in Beijing's most bustling, traffic the most convenient areas, whether it is the future sale or rental, is a very good property. Since it is the most prosperous region, so these properties can withstand the test of market volatility. as a commercial real estate, residential real estate is not as simple as with the construction area to measure its land reserves, the most important is to look at the land value of the property.
I have seen in this article he quoted the Shanghai lawyer's letter sent to me by a company, I still have not received to you this letter. I just saw it through much of the media disclosed the company's lawyer's letter sent to me, and they sued the Shanghai Municipal Development and Reform Commission and other government departments file. I think about this answer only four words: No comment.
The pattern is different. Some people do not understand, question our business model, which is normal. The most important point is, SOHO China to develop commercial real estate based, and most other real estate development business is mainly residential development. because the basic point of difference to a number of different causes of the following:
first, lots of different selection criteria. SOHO China must choose the most prosperous, the most convenient location of traffic . as a living type of land may be far from the city center, away from the downtown area. But the commercial real estate must not make mistakes in the lot. old saying different measure of land reserves. residential types of land can be used to measure the floor area, and often we see a number of reports, Which real estate company has 50 million square meters, 6000 square meters of land reserves, SOHO China is only there are millions of square meters of land reserves. you know, as a commercial real estate, but should use to measure the value of land. because the grasslands of Inner Mongolia on one square meter of land, and the Qianmen Street one square meter of land is completely different from the value The.
Third, the Government's policy on the residential real estate will not affect us. If the policy of the second set of housing loans, limiting size, limit price policy, etc., will not affect us.
real estate market is constantly changing, the market change is not the most intelligent people to grasp. For example, Warren Buffett could not even know that tomorrow the stock market is up or down. SOHO China strategy must always be in their advance and retreat ease state. market is good when we speed up the rate of sales, such as SOHO China's 2009 sales will set a new historical record; when the market downturn, SOHO China has a lot of stock. such as the 2008, SOHO China, a large number of items purchased including up to 55 billion turnover Chaoyangmen SOHO. no matter when, SOHO China are closely monitor the market, create value, the house is sold in the market to value. as a real estate developer and master the peaks and valleys corresponding to the balance between purchase and delivery is essential, SOHO China is the balance in the control room in full and sustainable development of space.
SOHO China's sustainable growth, how much space? If the real estate market remains positive, the company will have cash for the construction of existing projects, there will be more than from the amount of 300 billion in sales, can guarantee to maintain the growth of more than 3 years time. Conversely, if the real estate market is not good, the company make full use of the company's own funds and bank loans, bargain hunting more than 30 billion yuan of land and project . This is SOHO China in August 2008 to advance and retreat space is SOHO China's sustainable development strategy.
course SOHO China is still a young company, to be a century-old road is still long. in the market has given us a good platform in the context of opportunities and needs in a timely manner in accordance with market area, the variety of property development, brand building, sales and property held by the proportion of four to make adjustments, the company can withstand the different market the test environment, the SOHO China really made a continuously create wealth for the century-old.
we see the disappearance of many enterprises and even industries are not really find a way to own the balance between the long-term survival, as industry upgrading and technological progress or market fluctuations, the enterprise on the br> Pan Shiyi: SOHO China's development that meets every piece of land, we will actively participate in, including of course the service block. because we are the best in Beijing CBD development experience, our sales in the CBD, the CBD has more than 40 sales %. At the same time, SOHO development of the properties in the CBD, a total of more than 3,000 companies and 110,000 people in one office, business, the impact of the global financial crisis developed in China under the SOHO office rental rate has been above 95%, SOHO varieties and the development of China's property market positioning has withstood the test of the global financial crisis. SOHO China's contribution to Beijing CBD is obvious to all.
Earlier this year, I had more than 20 deputies together with the joint, called on government departments to the land market is more open, transparent, also received government land departments to ensure timely responses and open land market, just the specific measures. but there are individual companies in the land market always do everything possible to exclude competitors, unfair competition in the black box on the land market transactions. I believe that the Government will establish and improve the transfer of land policy, land policy to more open, fair and transparent. time to 2009, this and more difficult, the possibility of such a plot will succeed getting smaller and smaller. If we look at the facts reveals that Beijing's recent transfer of land, no longer optional, set the conditions for bidding, while a more open, more transparent and the auction listing. This approach is not only real estate company can participate, media coverage can be active only in the sun, will dispel the darkness and corruption. in the land market, the listing and the auction conditions than those set up, the sun is more selective bidding. This means more land of sunshine and also to avoid the country's wealth to a small part of the hands and the real estate company.
in the land transfer The most important process is the Government what to do, instead of the real estate business, market, competitors how to think, how to say.
a digression about the way that the inverted floor shortly before the Shanghai event. I have seen media reports, this land is to take the tender to set conditions for its land is only the same period, with the location of one-third of the land. The construction of this building construction units in the selection process, but also the tender conditions , the choice of this construction unit is the owner and developer of construction for the same controller unit. Since we can not choose the best construction units for construction, be guilty of a simple, low-level errors, led to so much tragedy. Fortunately, people do not stay. Shanghai down building event for all the real estate developers, construction units and the supervision unit is a lesson learned, do not just see it as a news, but the collapse of the building should be scene forever imprinted in their hearts, the best photos of the floor, hanging down in his office to remind yourself to act a little more sun each, a little more fair. inverted House event is in retaliation for the injustice .
view real estate new media Chen Xiaoli: July data show that line the city's real estate price rise occurred or the amount of up to volume decrease of Qi Cheng, this means that the excessive prices have curbed demand for further amplification you?
Pan Shiyi: China's real estate market is emerging markets, emerging markets have the characteristics of its immaturity. We do not ecstatic because of the rise in the short term, do not despair because of the short-term decline, thereby China's economy and development prospects of the real estate market, the loss of confidence. from the long-term and fundamental basis, we are very optimistic about China's economy, optimistic about China's real estate market. but in the specific operation, in the selection of land, choose a good location , we must choose someone who can withstand market risk and volatility of the project.
Sohu Focus Fei Li: A reporter said the real estate sector, you are a typical conservative, do you agree with this assessment?
Pan Shiyi: I have also heard this assessment. I think a conservative is a relative term, for some journalists, they constantly need to press events, to them, me and our company may be conservative a little. But relative to our experience and track record to see that our conservative mm company's profit, and paid taxes, all of our products to the market and society a satisfactory answer. relative to a company, in its growth years, the completion of Beijing CBD40% of sales, to resolve more than 11 million people and 3000 the employment of the company, which is not really conservative.
SOHO China, look at the design of products, are constantly innovative, more creative, we can not say conservative.
reflect on our behavior, only in conservative financial arrangements, SOHO China, four years prior to listing, the basic without any liability, which any real estate company it is difficult to do. listing of SOHO China, the financial position of the public through quarterly financial statements to see, we can also careful to analyze, you can see the financial position of SOHO China is very strong. Of course, journalists can also be used to describe a conservative.
China will stick to the strategy of commercial real estate you?
Pan Shiyi: Indeed, the rent levels as measured on the consumption of industrial enterprises, is the most basic and most timely indicator, which reflects the status of a city's economic development. Similarly, the rent level is an important indicator to measure real estate investment, but it should not be the only index, as well as property appreciation, inflation expectations for the future and so must be taken into account. SOHO China is still focused on Beijing, Shanghai downtown area commercial real estate, no change in the direction of the big.
