Smart Property Spreads Good News Again, Obtaining Guidance from the National Level Again

After three years of epidemic prevention and control, the value of property enterprises has been re recognized, and relevant government departments have begun to fully recognize the role of the property industry in community grassroots governance

 At present, the integration of property management and business management has gradually become an industry trend, such as the acquisition of four business management companies in Country Garden by Country Garden Services, the acquisition of 99% equity of Zhengrong Business Management by Zhengrong Services, and the acquisition of Rongle Times, a commercial operation subsidiary of Rongchuang Cultural Tourism by Rongchuang Services.

The inclusion of commercial operations in the property management sector is an expansion and upgrading of the capabilities of property management enterprises. After the merger and operation, excellent business management companies will bring stronger profitability to the property enterprise group and help enterprises obtain higher valuations in the capital market. But it is also a light asset management model, and commercial operations have their own professional and high operational requirements, which is also a test for improving enterprise management capabilities.

So, what is the current development status of the business sector? How can we enhance commercial operation capabilities to enhance the comprehensive capabilities of physical enterprises? The editor of Extreme Technology has compiled the interpretation of Kerui Property Management on the current business field, and the specific content is as follows:

According to monitoring data from CAIC, in 2022, the average vacancy rate of shopping centers in key cities, except for Shenzhen, continued to rise. Among them, Hangzhou had the lowest vacancy rate of 2.9% among key cities, while Beijing and Shanghai had vacancy rates of 7% and 7.3%, respectively. Guangzhou and Wuhan had the highest average vacancy rates of 9.4% and 9.6%, respectively.

From the perspective of rent, in 2022, the average first floor rent of high-quality retail properties in most key cities such as Beijing, Shanghai, and Guangzhou remained unchanged month on month; Chengdu and Hangzhou have slightly decreased compared to the same period, with a decrease of less than 1%.

According to CAIC monitoring data, the new opening projects and opening rates of shopping centers in 2022 have significantly decreased, reaching a recent historical low. As of December 20, 2022, there were only 305 newly opened projects, a year-on-year decrease of 44.2%; Meanwhile, the new opening rate of shopping centers is only 34.1%, lower than the 45.9% and 49.1% in the two years before the epidemic;

Overall, in 2022, due to the continuous and repeated impact of the epidemic, the vacancy rate, new opening volume, and main business formats of shopping centers in key cities have all contracted to some extent. With the comprehensive relaxation of epidemic control, we believe that in 2023, there will be a certain improvement.