2014-06-23

Vanke's Yu Liang: Golden Age is Over, But Now Is The Silver Age

You may remember this story from late May.

China’s ‘Golden Era’ for Property Over, Vanke President Says
“The period in which everybody makes money out of property is gone,” President Yu Liang told reporters May 26 in Dongguan, a southern city in Guangdong province. “Vanke will take a cautiously optimistic approach to face the slowdown and target those buyers who need homes for self-use.”

Today, his article in the People's Daily dubs this the silver age. He uses the metaphor of a zebra: optimists see white with shades of black; pessimists see black with shades of white. He's not walking back his comments. His point about the end of the golden age was that developers can no longer throw up buildings willy nilly and expect to make money.

人民日报刊登万科总裁郁亮文章:楼市进入白银时代
The real estate industry has spent the most golden years, but by no means should the Titanic hit an iceberg. But, everyone can bend over to pick up the golden era is over, the real estate industry into the era of the silver this time the real estate market there are many judgments, such as the collapse theory, the inflection point on the Titanic iceberg theory, and as always, great prospect theory.

The real estate industry has spent the most golden years, but by no means should the Titanic hit an iceberg. But, everyone can bend over to pick up the golden era is over, the real estate industry into the Silver Age

During this time the real estate market there are many judgments, such as the collapse theory, the inflection point on the Titanic iceberg theory, and as always, great prospect theory.

In my opinion, the real estate market is more like a beautiful zebra. What is black white stripes, or white with black stripes, depends entirely on the individual perspective. Optimists may think that it is white, but also need to be careful of black lines; pessimist believes it is black, but also with white highlights. For zebras, I hope that we remain vigilant when optimism, pessimism, when ye kept in confidence.

There is no doubt that the real estate industry has spent the most golden years, but by no means should the Titanic hit an iceberg. But, in the past, "bold is king", everyone can make money and the more money the more daring era ended.

The real estate industry into the Silver Age. Although not everyone can bend over to pick up the golden era, but silver is still precious metal. Real estate issues is essentially a population problem. Although some people think that the turning point of China's population growth is about to occur, but we ignored the two issues, namely the quality and distribution of the population. Judging from the quality of the population, China's higher education gross enrollment rate from 2-4% to when I was in college about 30% of the current, well-educated young people more and more, and they are the main buyers crowd. Population movements from the distribution, the Chinese population in the central city agglomeration process is not over yet. In addition to this broad deep northward large cities, as well as the existence of the housing needs of our many big cities, small cities. These are huge markets.

In the Silver Age, the developers do? First, follow the basic business logic, providing customers with cost-effective products and services. Second, do a good job supporting urban service providers. Vanke past slogan "for the average person to cover the house," and later added, "Some people live in the house cover," now fix a word into a "cover someone's house." Today, the city not only residential, but also need quality support services. In order to do a good job matching services, Vanke will start strategic cooperation with Baidu for commercial real estate introduction of mobile Internet-based big data mining and artificial intelligence algorithms and other technical services. Future Vanke community business, Life Plaza, shopping centers and other formats, will achieve vary due to the group and raise the fine service.

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