Chong Wang may feel unconvincing when I speak on this issue, because I don't think I am a project in the west, because I am in Deshengmen area of the North Second Ring Road and belong to Xicheng District. I think in fact, when it comes to the office market, your speech just now is very characteristic of Beijing. Beijing is really too big, so many business districts are distributed in the east, west, north and south, but you find that every business district is not a simple copy, CBD, Zhongguancun and Financial Street. This is a business circle with different types and characteristics. What do I think is the subtext of the business circle? It is a business opportunity, office building, office building, and the productive space of this place. At our planning meeting, we said, what is an office building? Office building is a space for brewing and activating productivity, which is different from living and working in peace. Business opportunities in each region are the key to your project positioning. Find out the business opportunities in your area. What business opportunities will people bring to you when they buy and consume your office space? Find this decoder.
Chong Wang, General Manager of Yixi Real Estate
Chong Wang We are in Deshengmen, Zhongzhou Road, North Second Ring Road, and we are honored to be in the same administrative jurisdiction as Financial Street, neither relying on CBD nor Zhongguancun. That's the case. We settled down to study our products, and I found that Mr. Pan's point of view was consistent with our research. There are many domestic-funded and growth-oriented enterprises in the Second Ring Road area, but our North Second Ring Road area has not had a distinctive writing space for marketing for a long time. Another growth company we are talking about is not jumping from one to one hundred at once, but gradually upgrading. Every growing company wants to be an industry leader, dreaming that one day I can dominate the real 5A-class, Grade A, or landmark buildings, but the development of enterprises is an objective reality. So he needs to have different levels of office space products to adapt to the growth of his company.
These growth companies in Xicheng District of Chong Wang are not qualified in hardware, because the hardware is piled up at cost. He doesn't have the strength, and he wants to be 5A, but his strength really can't stand it. His company's strength is not great, but its mentality, ideals and dreams are high, and its cultural outlook must be no different from any 5A office building. Therefore, in this respect, we grow the dignity of the company, which is the breakthrough direction of our company. For this reason, we are located in a middle school, and our facade is 2 1 century after all. Our fa? ade pursues fashion, but our public areas are all in a new Chinese style, which is made up of wall bricks and cultural relics.
At the same time, in Chong Wang, we also made a technology to transform Deshengmen Building into a one-on-one cooperation with our enterprise, which is also a clubhouse of our enterprise. Now the cultural relics area itself is also operating. Because it is a public institution, it is actually operating, but the operating state has always belonged to the low level of selling counterfeit money and taking kickbacks from tour groups. We put forward a slogan with the district government. Just because we want to turn this place into a high-end cultural exchange place for political and business circles doesn't mean we have to have a big meal here. China is becoming more and more international, but in the international communication space, I don't just emphasize how modern I am. National things, you are your real strength in national cultural heritage, so in this respect, including our cooperation with Xicheng District Government, this proposal has been submitted to Xicheng District Government and has been decided with the Cultural Relics Bureau. We want to rename Deshengmenwai Street Desheng Avenue to give confidence and dignity to traditional enterprises in this area in terms of cultural construction.
Chong Wang, because of these companies, the companies around us in Xicheng District, if they go to Zhongguancun Business Circle and CBD Business Circle, it means that they have given up their mature industrial and commercial relations, business relations, industrial and commercial relations, taxation and government relations in their hometown and re-established some new relations in Haidian District, which is very costly for their operation. Therefore, they hope to have a business space that suits them, reflects their success and reflects their growth in their familiar homeland. Therefore, we don't go to Zhongguancun to grab customers, nor do we go to CBD to dig customers. We just need to digest these local growth companies.
Chong Wang: As a matter of fact, the number of clients we have clinched a deal with has suddenly exceeded 50% since August 8, and these are the companies that have come to buy. Our current price is 10200 yuan, which just broke through the line of 10,000 yuan, so I dare not. Our starting price at that time was 8500, and it was very short and fast. When we subscribe to such a day, it is a bit too much. In retrospect, this is a bit excessive. On the day of subscription, the price was adjusted three times in a row, from morning to noon and then to afternoon. Our customer base, North Second Ring Road, is a blank market. We are based on Beijing and Beijing culture. Culturally, we should learn from Zhongguancun and CBD. In terms of hardware, cost and price, it should match the actual purchasing power of regional customers. No matter how loudly we talk about internationalization, we will be overwhelmed by China's trade and wealth, and we can't compete with Zhongguancun. We say that the business circle is as big as we are here. This business circle has been arguing for so many years, and it's nothing special. We are based on Beijing and Beijing culture, so we follow the Chinese style. Nowadays, Chinese style and new architectural style have become a common practice in the field of architecture, but it is impossible to simply copy them back to the ancestors of the Ming and Qing Dynasties. However, we should use many aesthetic philosophies and ethical thoughts of the Ming Dynasty to build office buildings in this era.
Chong Wang: I am very happy today. I am as determined as Mr. Wei. My confidence in our market positioning was originally based on my own experience in the bureau. After the meeting organized by Morning Post, I listened to the opinions of experts and felt the judgment of the market through the explanation of the project. I think we should stick to our position.
Chen: I have talked with several scholars in the field of architecture. They are also considering the development direction of Beijing office market. They have their own opinions. There are already strong supporting plots, such as CBD, Chang 'an Street and some lots. He needs some good communication and construction with the surrounding cultural ecology. In this case, it can be artificial, where the ecology is better and the way out for the office building is found. This aspect may be in line with some of their views.
Mochun also conforms to the theme of today's forum, the mentality of architectural style and the combination of culture. I think this includes how to make good use of the ancient building-Deshengmen Tower. The project of Nanxincang uses a nearby 600-year-old ancient granary, the royal granary at that time, and combines it with the new building. This is a new practice and the embodiment of the new architectural style.
I just visited Hou Shoufa, and I am the only one here in the real western project. Everyone is from the east, and our project is opposite the People's Bank.
Pan Minglang: I think so, because it is aimed at office innovation. Everyone can put down, stop staring at their own projects and jump out of their own projects. Otherwise it will become a project promotion meeting.
Hou Shoufa's distance from east to west is not exactly what Mr. Pan said. He said it was hot in the east and cool in the west. I don't entirely agree with this. I think the so-called hot, I agree with Mr. Pan. The so-called heat is the big circle around CBD, with a wide range and many projects. In this sense, I agree with him. Jianguomen business circle and Yansha business circle can't be compared with the east, because they were developed earlier. In this sense, I really think the East is hotter. The business atmosphere in the east is relatively strong, because it is mainly foreign-related, and the east is indeed hotter than the west. Including the current CBD planning, the scope of 8 million square meters, how many things can this do, not to mention the office building, it will have any form, so it is definitely different from the West.
Hou Shoufa thinks from another angle, what is heat? The so-called heat, the purpose of your office building, the purpose of your apartment building, is to sell, to rent, to market recognition and market acceptance, to make products. If you can't sell it or rent it, it's useless for the market to recognize you again. In this sense, it is another concept not to expand the land supply on the first west side, but to expand beyond the third ring road, four rows and five rings. I am aiming at the concept of West Second Ring Road and Financial Street.
Pan Minglang, you mean your own west together, not the whole west of Beijing.
On a small scale, from the West Second Ring Road and Financial Street, Hou Shoufa is not cooler than the east. There are several characteristics here. First, in terms of land supply, Financial Street is not comparable to CBD. The last piece of land is gone, and the supply is limited. Second, from the sales and rental of the whole house in Financial Street, it is not bad at all compared with the east. I went to ask how much it costs per square meter, and he said, don't ask how much it costs per square meter, and come back two years later to ask if there is a house. The monthly rent for ocean shipping is $30, with a minimum of $25. As far as I know, it's usually $28,30. In this sense, it is not worse than the East. Another view is that customers in the west may not be as big as those in the east, but each customer buys a bigger house. You see, the CBRC buys 50,000 to 60,000 square meters of buildings, the CIRC buys 50,000 to 60,000 square meters of buildings, and Netcom buys tens of thousands of square meters of buildings. The number of customers is not very large, but everyone buys a lot.
Hou Shoufa now tells me about the four families of my project. They robbed a building in the east of me. These four families are not all state-owned enterprises, but I can't say who they are, because they haven't signed an agreement yet, and they are not all domestic enterprises with Chinese prefix, and there is also a foreign bank. So in this sense, the market supply in the west is good, and the market demand is also good. I don't think it's low.
Pan Minglang is actually my opinion. I always thought there was no problem with Financial Street. What I'm talking about is that Zhongguancun is under great pressure now. You are basically not a financial street now, but you are a financial business circle, and this range is definitely no problem.
At that time, there was something wrong with the overall positioning of Zhongguancun in Hou Shoufa. If Zhongguancun is located in that place on the ground, it is definitely not that pattern. As far as I know, the mayor has held numerous meetings to hold a traffic meeting in Zhongguancun, and no one can solve it, because this positioning was really too close at that time. I just want to borrow universities and scientific research units. Actually, it's a little too close. I might as well go outside. But we don't judge others, we only talk about the supply and demand of the whole market.
Our apartment in Hou Shoufa, too, opened on September 10, starting at 15000, and now 16000, it has been sold for 60% in these two months, so I think the overall demand is still relatively large, there is still demand, the supply is limited, and there is basically no land. Unlike the East District, which can expand outward, you are not allowed to tear down the quadrangles within the Second Ring Road. The supply is limited, but the demand will not be less.
Chu Hongliang, General Manager of Wan Heng Real Estate
Chu Hongliang, let me say something. Actually, I'm here today on behalf of Wan Heng Real Estate. Secondly, I want to say that I have the honor to participate in two projects in Financial Street. One is the earliest investment plaza, half of which was sold by Lida Bank, and the other half was sold by ourselves. Another project is the Netcom Building mentioned by Mr. Hou just now. That project was also developed by us. We sold it to China Netcom at the end of last year. Now the headquarters is in front of Mr. Hou's building. Look at the speed of Chang 'an Center. Look, your building has grown up. Financial street includes the west. It should be said that in the whole business circle, Financial Street, Zhongguancun and CBD are actually the hottest, and the best market is not CBD and Zhongguancun, but Financial Street.
Chu Hongliang's point of view can be seen that there is basically no sound, no advertisement and no communication with the media.
Pan Minglang: I think Zhongguancun business circle, CBD business circle and financial street business circle are not comparable at all. If you want to compare, let Financial Street return to 1997, because it is a mature business circle.
Chu Hongliang just mentioned that there are actually many buildings in Financial Street, including the original China Netcom. Half of Fukai Building was sold to the CSRC, the CIRC and the CBRC, including a commercial bank. I am reluctant to take another financial street. I won't sell whoever buys it. I have to take this. Seeing that their land is almost sold in the financial street, if they want to keep some of their assets, no one will buy the piece in the central area. China Netcom once talked with Financial Street and wanted to buy it, but Financial Street just didn't sell it. The transaction price between us and Netcom should not be lower than CBD.
Chu Hongliang: Why do I say Financial Street is the best? First, its location is relatively small, things are scarce, scarce things are more valuable, and there is no land in Financial Street. It is more difficult for other enterprises to enter the financial street, unless you rent property and office buildings in the financial street. Just now, Mr. Hou also mentioned that there are basically no rooms in many buildings, including our China Merchants Plaza, which was developed by 1994 and probably completed by 1997. At present, that building can only be considered as a Grade B office building, and the average price at that time was 1996, 1997. Because these properties are sold in the whole building, they are not exactly the same as those sold in bulk. We do it all on the ground and underground, and underground may also take the average price. Maybe you think you have seen it in the market, including the announcement of Financial Street itself, how much it sold to the China Insurance Regulatory Commission, and how much it sold to China Netcom. In fact, the profit is quite acceptable, and we have saved a lot of marketing expenses.
Chu Hongliang: I wonder how much it will cost to promote Beijing's wealth every year. At least I have seen R&F advertisements, which can be seen in Beijing newspapers every day. During the sale of Zhongzheng Building, we also sold it for a period of time. We sold such a big order to China Netcom last year, but we didn't dare to tell anyone in the market. Sold more than 20 thousand square meters in the early stage. After signing the contract with China Netcom, the biggest task is to clean up the existing buyers, which is much more difficult than demolition. Fortunately, we cleaned up all the retail investors before August this year, so I dare to disclose this matter now. In fact, I feel that the most successful of these business districts is Financial Street, and there are also problems in the early days of Zhongguancun. When 1997 started to move in centrally, the rent was once reduced to about 12 USD. At that time, many investors came to buy. At the beginning of 1994, Investment Plaza, State-owned Enterprise Building, Ping An Building, Yuetan and Wantong were all sold to the market at the same time, including Ping An Building. This kind of pressure is also great. Moreover, there were basically no domestic buyers at that time, and the investment customers were all Chinese, Japanese and Singaporeans in Hong Kong and Singapore. The recognition of Financial Street is also gradually formed naturally after experiencing certain pains.
Chu Hongliang just said that financial street is not market-oriented. In fact, Financial Street is only a market-oriented behavior. It has a good name, Financial Street. It uses China People's Bank in the south and China Bank in the north to build a financial street along the West Second Ring Road. This is a holding company established by Xicheng District Government, and now it is also a listed company. It attracted some investors to build it by selling land. What it does best is to control the quantity best, and there is a good ratio between self-use customers and investment customers. Doing real estate is also investment-oriented and self-use. The land bought by China Construction Bank is for personal use, and so are China Telecom and China Mobile. Do some market-oriented projects. At that time, our China Merchants Plaza, and now our Zhongzheng Building, are all completely market-oriented projects. Our Zhongzheng Building is operated by a listed company in Hong Kong. Completely market-oriented, financial street only accounts for a small share. We sold it to China Netcom without any government subsidy.
Xicheng District, where Chu Hongliang is located, has introduced some financial encouragement policies, hoping to attract foreign banks and other domestic financial institutions to settle in Financial Street and make it more international. Financial companies that lease financial street properties have certain subsidies, and customers who buy financial street properties also have certain subsidies, but as far as I know, most of them held some press conferences in financial street some time ago and returned some money to buyers, with a total amount of more than 5 million yuan. For a buyer, buying a big market is more symbolic.
What was Chu Hongliang's mistake in Zhongguancun? In fact, it lacks a customer for its own use. Geographically, it is also a customer, and from the perspective of developers, it is also a customer. Another, he lacks powerful developers, the plot is too narrow, and the planning is relatively dead. I went to Zhongguancun two days ago to have a look. Basically, they are buildings of 20,000 to 30,000 square meters. The only possibility is that Zhongguancun financial center is more imposing, and many other real estates are. The strength of developers is not enough, and the facade shapes are also various. Generally speaking, it is relatively small, about tens of thousands of square meters. Zhongguancun introduced a large developer like China Trade Center at that time. As far as a developer's planning is concerned, it may be better than the current phenomenon.
Chu Hongliang has another one, and his supply is released in a centralized way. Basically, these buildings are capped at this stage. At present, his customer base is relatively small, which has caused some competition. If you reduce the price, I will reduce it. I am familiar with a project in Zhongguancun, Yingke Building, which starts at 15,000 to 13,000, and reaches 11,000. I went to see the existing house, which is of good quality, but I can't sell it. At first, the positioning is relatively high, and he may sell faster than the existing house.
Chu Hongliang came back to us to introduce our own project, which is closest to us. This project is still competitive with the projects of Mr. Pan and Mr. Wei, but it is not particularly strong, and there seem to be few customer conflicts. When we do this project, why do we feel that we should go from west to east? We feel that there is no land in the West Second Ring Road. We had one once. When Netcom talked to us about buying a house, his choice was only two points, one was Chang 'an Avenue and the other was West Second Ring Road. All the land on Chang 'an Avenue was taken, as well as the land next to the West Second Ring Road. There is an international investment building in the north of financial street, which is not in it. There was no sound, no advertisement, no press conference in the market, and all the buildings were sold out. Therefore, I think Mr. Hou's project can basically go this way, because we often go to Guangdong for meetings, and we can see that the construction is growing from upstairs.
When Chu Hongliang was looking for a project, Chang 'an Avenue was the first choice, and then the lost West Second Ring Road ran to the East Second Ring Road. Then why did we do the East Second Ring Road project at that time? East Second Ring Road has a very good chewing head, the largest transportation hub in Asia. Oriental ginza gave us a lot of advertisements ahead. Dongzhimen area is recognized by all. High-end residential projects, the regional popularity of contemporary Wanguocheng and Dongzhimen has been very high. Dongzhimen is a high-end residential area, which is a new high-end residential area after the generation of Ximen in Chaoyang Park.
Mr. Ren Hongliang also helped us. Mr. Ren gave up the land in CBD and bought the land in Dongzhimen. This has his own reasons, and all of us have figured out a little taste. I think our project in Dongzhimen still has market potential. We should cap it on the 26th of this month.
Chu Hongliang: We always wanted to find a company like China Netcom in the early stage, but we made appropriate adjustments after the capping. Before that, we did a little research on Dongzhimen area. Now there are three business districts, CBD, Zhongguancun and Financial Street. Now we are in three areas. What are Zhongguancun, CBD in Chaoyang District, Financial Street in Xicheng District and Dongcheng District? In fact, Dongcheng District is now building the East Second Ring Business Belt, but I feel that this name is not very pleasant to listen to and cannot compete with these names. Two days ago, I saw in the media that Contemporary Wanguocheng proposed the first business district in China. We say that Dongzhimen does as the Romans do is convincing. After the completion of the largest hub in Asia, our ticket gates and airport ticket gates will be in Dongzhimen in the future. The first stop from the airport to Beijing will be in Dongzhimen, and the first stop will be in Beijing. In fact, we also refer to the formulation of Nanxincang and Xinbaoli, both of which are concepts of the East Second Ring Road Shang Dynasty.
Chu Hongliang, I really want to find a time to communicate with some big bosses. Let's name this area together. In fact, the East Second Ring Road can be seen. We will be the headquarters of PetroChina in the future, and the headquarters of Beijing Mobile is directly opposite us, including Youth Travel Service, China Railway Logistics, New Poly, and then Jianguomen, including the Huacheng Building of General Manager Wei. In fact, this line has concentrated a lot of large private buildings, as well as some new commercial buildings that can be launched together in the market. His supply is just right. The competition is not very strong. Everyone's products have their own characteristics. I think if we cooperate, East Second Ring Road, a business circle, is called Guomen Business Circle. Whatever the factors, I want to take a name similar to Financial Street. Dongcheng District can compete with Xicheng District, Haidian District and Chaoyang District to create a hot spot in Dongcheng District. I thought the same thing.
Chu Hongliang returned to the brainstorming of innovation, and combined with the characteristics of our own projects, introduced some small things we did in traditional innovation. In fact, I also agree with Teacher Luo's point of view just now, including everyone's point of view. In fact, the office building is relatively regular, and there should not be too many fancy and strange shapes, which will increase the cost and make it more difficult to use. The real estate we do, the customer's favorite room type is square, angular and sharp. Judging from his use, from the perspective of geomantic omen, he thinks it is not good.
Chu Hongliang has one more thing. The area of the whole floor will also affect the buyer's choice. At that time, we were inspired by this as investors. Most of the buildings in Financial Street are located in a simple area of 5,000 square meters, while Chacha Investment Plaza is a simple area of 1800 square meters, which can be flexibly divided into two pieces, one of which is 900. That's all, we are the best-selling property in Financial Street. At that time, it was the best property in 1995 and 1996, with an average price of 2800. The best property in Financial Street is the State-owned Enterprise Building. Basically, except Huatai insurance company, not an inch has been sold. In addition to its own price positioning, it is also related to the plane layout.
Chu Hongliang, most of our buyers want the whole floor. He thinks it is more suitable for me. Two thousand square meters, two floors, or ordinary floors. At first, I bought a floor of 900 square meters. Later, I felt small, so I bought another floor. That's not enough. I bought another floor. In fact, he is only 4,000 square meters, but it occupies four floors. As far as corporate image is concerned, it is very good. The advantage of our single-family area has prompted many customers to choose the investment plaza, which leads to the worst quality and the best-selling property in the investment plaza of Financial Street Building. Now you can say.
Chu Hongliang returned to our building. At that time, our building was small, covering an area of only over 50,000 square meters. We are also a comprehensive building. Later, we modified it a little and turned it into two core buildings, in fact, it became two towers. These two towers are actually a whole floor, covering an area of 2,000 square meters, artificially divided into two pieces, covering an area of 600 square meters. The recent market feedback is very good, and customers feel very satisfied with the area of our first floor. Many customers say that I want 1500 and I want 2000 to make it an independent whole, which will also improve the efficiency of use. Why do many companies choose this kind of property? Many companies, if I am on a separate floor, 5000 square meters and 2000 square meters are all hung with my brand, and the elevator door is mine. This is different. This is an innovation in some small places. This kind of innovation is not only available now. We made it on 1994. We didn't do it that time, this time on purpose.
In addition, we also made an article on the utilization rate. The utilization rate of general office buildings 68-75 is more appropriate. Real office buildings are different from business apartments. The lobby of our building is exquisite, unlike many before, the bigger the better. Now some office lobbies are getting smaller and higher, which leads to lower utilization rate. We do the opposite and compress the lobby into a suitable space, not to say that there is no certain style, but there are still certain style requirements. In fact, we have two halls, a small hall and a big hall. The whole floor is more than 10 thousand square meters, and the other is more than 20 thousand square meters. Our utilization rate has reached more than 76, and the office building has reached more than 76, which should be relatively high in many real estates. As far as the office buildings where I have worked for so many years are concerned, they are basically below 70. We achieved 76 for this property, and it was also 76 when we promised. These are some minor improvements we have made.
Chu Hongliang has one more thing. As a new product we adopted, our building took the lead in adopting a vacuum glass curtain wall in China. The glass we use is vacuum glass, and now it is basically double-layer insulating glass.
Pan Minglang's ordinary residence now is not hollow, but double-decked. Secondly, the glass wall is not a glass curtain wall. Similar materials used in Jianwai SOHO are all made of this material, followed by curtain wall, which is very high in technology.
Chu Hongliang: This means that the insulating glass is coated with an anti-corrosion layer. There is air in the middle of the hollow glass. The effect of vacuum glass is the same as that of a thermos bottle, which is completely heat-insulating and sound-insulating. After the completion of the transportation hub in the future, everyone will feel more or less noisy. We use vacuum glass, which can effectively insulate the sound and heat, protect the environment and save energy. At present, the price of insulating glass used in Beijing is two to three times that of now. This is also something that can effectively improve the quality of buildings. China has not been adopted by buildings. We should be the first.