Vanke's Shanghai Long-Term Rental Apartments are an Important Piece of Corporate Strategic Transformation

Long-term rental apartments is an emerging segment of China's real estate market in recent years, the huge market potential and the government's strong support for this industry has quickly become the market's wind mouth, all kinds of capital have to get involved in it, which is represented by Vanke real estate enterprises is to increase the development of the field of longterm rental apartments in the business, in the country ranked one-third of the top 30 developers in the field of longterm rental apartments, and the rest of the enterprises are also accelerating the layout.

Strategically speaking, Vanke's efforts to vigorously develop long-term rental apartment business is a very important step after it put forward the service concept of "urban supporting service provider", and the launch of its long-term rental apartment brand "Park Residence" is a major step forward in its development from a real estate developer to an urban supporting service provider. The launch of its long term rental apartment brand "Park Residence" is Vanke's transformation from a real estate developer to an urban support service provider.

First of all, long term rental apartments, as an important supporting category in the city, belong to the strong residential type, and Vanke, as a large-scale developer, has sufficient confidence and ability to solve the housing problem for urban youths in addition to its innate resource advantages;

Secondly, the potential of China's future leasing market is very huge, and the annual transaction amount is expected to reach hundreds of billions of dollars, and every young person who comes out of the society has more or less rented a room or a flat. Out of the society of young people have more or less had the experience of renting, the customer base of the long term rental apartment market is very large, especially for the first-tier cities such as Shanghai, the market demand is very strong;

Once again, the development of the domestic rental market history of sloppy, all the operators together accounted for less than 1% of the market, and in the developed countries, nearly eighty percent of the rental housing are operated by the brand operators, and the current lack of standardization of the industry is not a good idea. Coupled with the fact that the current industry is not standardized, the products are mixed, and the control system is weak, there are still many pain points in China's rental market, which need to be resolved urgently.

Under such a premise and market environment, Vanke will, first of all, continue to pay attention to the land market, and while developing traditional residential, commercial and office buildings, it will also pay great attention to the land concessions of apartment properties. At the same time, it will also grasp the cooperation *** knowledge of joint land acquisition and *** co-development with other enterprises in respect of the long term rental apartment business.

Meanwhile, Vanke will actively explore the inventory asset market, from idle vacant assets to village and township collective assets, to poorly operated transferred assets, all of which will become ways for Vanke to acquire projects.

Vanke expects to increase its investment in the field of long-term rental apartments in the next few years and acquire 200,000 rentable housing units, all of which will be used for the development of the long-term rental apartment business, in the form of independent development and cooperative development. In the process of development and operation, it will acquire assets by combining light and heavy assets, and improve the value of the assets through remodeling and operation, so as to achieve the goal of property appreciation and brand appreciation.