On June 25th, Guangzhou welcomed the fourth residential land transfer within the year.
According to the land transfer information, after 12 rounds of bidding, the AF040134 plot south of Hedong Road in Liwan District, Guangzhou was won by Guangdong Poly Urban Development Co., Ltd. for a total price of 69992 million yuan, with a transaction floor price of 27105 yuan/square meter and a premium rate of 8.5%. This is also the first premium land parcel sold in Guangzhou this year.
According to the monitoring of Zhongzhi Research Institute, in addition to Poly, the real estate companies participating in the bidding for the plot also include Greentown China and Beihaojia Real Estate, a subsidiary of Beike.
Compared to Poly and Greentown China, Beihaojia Real Estate is not well-known to the outside world. But what can be seen is that since March, Beihao Home has successively appeared in the land auction market in first tier cities such as Beijing and Guangzhou.
Public information shows that Beihaojia Real Estate is backed by the real estate service platform - Beike Zhaofang.
This is also Beike's second attempt to explore from real estate transactions to residential development business. Last July, Beike upgraded its corporate strategy to "one body, three wings" and adjusted its organizational structure, forming four business lines: brokerage, home decoration, Huiju, and Beihao Home. Beihao Home, as a residential development service platform under Beike, made an attempt in March this year. On March 15th, the airport plot in Shunyi District, Beijing attracted 36 real estate companies to draw lots, including Beihaojia (Beijing) Real Estate Co., Ltd. The plot was ultimately won by Beijing Construction Engineering through a lottery with a peak price of 1.167 billion yuan.
Although there were no gains from the two auctions, Beihao's actions in bidding in different urban land auction markets have also attracted attention. In response to this, Beike stated that Beihao Home is currently in the business exploration period, focusing on suitable project opportunities and cooperation opportunities in mainstream first and second tier cities.
It is understood that Beihaojia has two internal business models and anchors mainstream improvement customers in key cities. In the early stage, it focuses on the main circles of top cities and forms two business models, the 9th and 10th, based on common primary and secondary market investment models. Some of them are also referred to as the 9th and 10th projects.
Beike stated that both models are based on the core concept of C2M and work together with partners (including branded real estate companies, local urban investment, land resource providers, financial institutions, etc.) to create good products and services. Among them, Project 9 is funded by Beihaojia's front-end preferred shares, and Project 10 is funded by Beihaojia's front-end equity. In both of these business models, Beihao Home is deeply involved in product positioning, providing integrated solutions covering customer research, product positioning, and marketing, and working with partners to create good products and services that meet customer expectations and are suitable for the market.
"In practical operation, the forms can be diverse. For example, if a real estate company has already auctioned a plot of land, which is more suitable, we can cooperate together; or if there is a new suitable plot of land, we can first auction it and then cooperate, etc." said an insider from Beike.
According to Beike, Beihao Home's positioning is not traditional real estate development, but a data-driven residential development service platform. I hope to explore and validate the positioning ability of C2M's new housing products through small-scale projects in the early stage.
An insider from Beike said, "One of the directions currently under consideration is to cooperate with state-owned enterprises. They have relatively mature experience and a complete system, and can develop together through cooperation."
According to the financial data disclosed by Beike, billions of yuan in cash and equivalents have their financial advantages. According to the unaudited financial performance announcement for the first quarter of 2024 released by Beike Holdings on May 23, 2024, as of March 31, 2024, Beike's total balance of cash, cash equivalents, restricted funds, and short-term investments was RMB 60.8 billion.
Beihao's attempts will continue. From the Tianyancha APP search, it can be seen that Beike has established Beihaojia (Beijing) Real Estate Co., Ltd., Beihaojia (Chengdu) Real Estate Co., Ltd., Beihaojia (Xi'an) Real Estate Development Co., Ltd., and Beihaojia (Shanghai) Real Estate Co., Ltd., all of which have been established for less than one year.