Why is real estate a cyclical industry?

The real estate industry and the automotive industry are cyclically developed.

Who has the ability to monopolize an industry now?

The clothing industry is not a monopoly industry!

The real estate industry is currently in the bottoming stage, in fact, since the second half of 2022, the real estate market in most cities in China has shown a downward trend, and real estate investment has also declined a lot. If you look at it from a sales perspective, in the second half of 2022, the sales area of domestic commercial housing has declined, probably around. If you look at it from an investment perspective, in the second half of 2022, the total amount of real estate investment in the country will decline, probably around.

So overall, the real estate market is indeed relatively depressed now, and the whole is in the bottom-building stage, so now is a good time to buy a house.

If it is commercial land, the property right is 40 years, if it is industrial land, the property right is 50 years, if it is residential land, the property right is 70 years, and the property right is calculated from the developer after getting the land, not that the house is lived in. For example, the 70-year property right of residential land can be automatically renewed after expiration, and when buying a house, you need to first look at how long the property right of the house is, and whether it can be renewed after expiration.

Now the interest rate of the loan for buying a house is not fixed, if it is a commercial loan, the interest rate will be slightly higher, the benchmark interest rate is, but if it is a provident fund loan interest rate, it will be relatively lower, the benchmark interest rate is. However, the actual interest rate of the individual loan is actually much higher than the benchmark interest rate, which depends on the policy of each bank.

The above is the content of the question of what stage the real estate industry is currently in, the current real estate industry is actually in the bottoming stage, no matter which city, in fact, the real estate industry is not particularly prosperous.

When the economy is bad, the activity of real estate construction will drop to a very low level, and the financing of real estate construction projects will be suppressed.

After a while, the economy is not so bad.

The cake was made, or the mountain rose later even better.

Economic growth has been better, leading to an increase in demand for home construction.

When the economy was weak, only a few buildings were built and are only now starting to be occupied, and the additional increase in the area of housing demand has led to a somewhat tight supply, so house rents and sales** have started to rise.

Rents and house prices have risen, and property ownership of real estate can enjoy asset appreciation, and wealth will increase with it, awakening the enthusiasm of developers to build new projects.

The economy is developing better, real estate assets are appreciating, making capital providers more optimistic, and the mentality of capital providers has become better, making it easier for real estate developers to get financing.

Financing is cheaper and easier, which naturally raises the expected rate of return for potential projects and also increases the attractiveness of these projects, and therefore the desire of developers to pursue them.

The combination of higher expected returns, more optimistic developers, and more generous capital providers has led to a significant increase in construction start-ups.

The first batch of completed projects, which encountered strong pent-up demand, were all rented out or sold out quickly, allowing developers to make a fortune.

After the construction of the building begins, it will take several years to complete, during which the first project to be completed and put on the market eats up the previously unmet demand.

It often takes a long time from the start of the plan to the time it is completed and opened, enough to take the economy from boom to bust. Projects that start at a time when the economy is growing well often start when the economy gets bad. This means that these additions are simply adding more vacant space, increasing the downward pressure on rents and sales**.

Unused unused space roams the market like a ghost.

When the economy is bad, the activity of real estate construction is low, and the financing of real estate development is suppressed.

Major listed companies in the industry:At present, the listed companies in the domestic real estate development industry mainly include Vanke A (000002), China Overseas Land & Investment (00688), China Resources Land (01109), Poly Development (600048), Longfor Group (00960), Country Garden (02007), Gemdale Group (600383), Greenland Holdings (600606), etc.

Amount, area, gross margin, return on equity, revenue growth rate, net profit growth rate.

——The amount of waist enterprises is 400-80 billion

According to Kerry statistics, in the sales list of China's real estate enterprises in the first five months of 2022, the top 20 real estate enterprises have an amount of more than 100 million yuan, and the scale of the first five months is between 400-80 billion yuan, which belongs to the waist enterprises of China's real estate development industry.

Note: The 2022 statistics are as of May 2022.

——Waist enterprises prefer to lay out in East China and South China

From the perspective of the sales area layout of waist enterprises, most enterprises prefer to lay out East China and South China. Gemdale Group's sales in East China accounted for the proportion of South China; Greenland Holdings: East China and South China; Binjiang Group's business is mainly concentrated in Zhejiang Province; The proportion of sales in East China of Seazen Holdings.

-- The overall level of gross profit of enterprises is relatively stable

Judging from the gross profit margin of waist enterprises from 2020 to 2022, the gross profit margin of waist enterprises is relatively stable as a whole. In the first quarter of 2022, Gemdale Group's gross profit level reached the highest among waist enterprises; The gross profit margin of Greenland Holdings is low.

Note: C&D Co., Ltd. only counts its real estate development business indicators, and the first quarterly report does not disclose this data.

-- The return on net assets of most enterprises has declined

From the perspective of the return on net assets of waist enterprises from 2020 to 2022, the change trend of the return on net assets of waist enterprises is different. In the first quarter of 2022, except for CIFI Group, the ROE of the rest of the companies showed a downward trend.

-- The company's revenue growth is relatively good

Judging from the growth rate of operating income of waist enterprises from 2020 to 2022, the trend of changes in enterprises is different, but the elasticity of revenue growth is greater than that of head enterprises. In the first quarter of 2022, the revenue growth rates of Gemdale, CIFI, C&D, and Xincheng were all positive, of which Gemdale's revenue increased and CIFI increased; The revenue growth rate of Binjiang Group and Greenland Holdings is negative.

-- The growth of corporate earnings still needs to be improved

Judging from the net profit growth rate of waist enterprises from 2020 to 2022, the net profit growth rate of most enterprises since 2022 is far less than the revenue growth rate. In the first quarter of 2022, the net profit of C&D, Gemdale and CIFI all achieved positive growth, of which C&D Real Estate increased year-on-year and Gemdale increased year-on-year; New towns, green spaces, and riversides all had negative growth.

The real estate industry refers to a comprehensive industry integrating a variety of economic activities with land and buildings as business objects, engaged in real estate development, construction, operation, management, maintenance, decoration and service. Here's a little bit of information I've put together about it. FYI.

The real estate industry refers to; It is a comprehensive industry integrating a variety of economic activities with land and buildings as business objects, engaged in real estate development, construction, operation, management, maintenance, decoration and service, and is a leading, basic, driving and risky industry. These include: Land development, construction, maintenance, and management of houses, paid allocation and transfer of land use rights, sale and lease of house ownership, mortgage loans for real estate, and the resulting real estate market. In real life, people are accustomed to referring to the industry engaged in real estate development and operation as the real estate industry.

The specific content of the real estate industry.

*1*** transfer of state-owned land use rights;

*2*** Real estate development and redevelopment: land requisition, demolition and resettlement, commissioned planning and design, development and redevelopment of old urban areas;

*3*** Real estate management: economic activities such as the transfer, lease, and mortgage of land use rights, as well as the sale and mortgage of houses;

*4*** Real estate intermediary services: real estate consulting agency, real estate appraisal agency, real estate ** agency;

*5*** Property management: maintenance and repair of housing utilities and provide a safe, hygienic and beautiful environment for users;

*6*** Regulation and management of real estate: Establish the real estate market, capital market, technology market, labor market, and information market, formulate a reasonable real estate system, establish and improve real estate laws and regulations, and realize the state's macro view of the real estate market.

Real estate is a combination of real estate and real estate. Real estate refers to all kinds of houses built on land, including residential, warehouse, factory, commercial, service, cultural, educational, office, medical and sports buildings, etc.; Real estate includes land and various underground infrastructure, such as underground pipelines such as heating, water supply, electricity supply, gas supply, drainage and sewerage, and surface roads.

Real estate industry content.

1. Land development and redevelopment;

2. Development and construction of housing;

3. The operation of real estate includes the transfer, transfer, lease and mortgage of land rights

4. Real estate management includes the sale, lease and mortgage of houses

5. Real estate intermediary services include information, surveying, lawyers, brokers, notarization, etc

6. Real estate property management;

7. Real estate finance includes information, insurance, financial investment, etc