Very strange, I don’t know when, “high turnover” became a word that “can’t see people”. The public and the media have been widely criticized, and even some housing companies are very afraid to mention these three words.
The logic of everyone is very simple: high turnover = fast speed = poor quality.
At first glance, this causal relationship seems quite reasonable. But is high turnover just a pursuit of speed? Going further, is it fast?
1. High turnover is the inevitable choice of housing enterprises
When it comes to "high turnover," many people think of Country Garden.
Indeed, in Country Garden, the label "High Turnover" is too deep. Especially in April of this year, Country Garden made three consecutive articles, and the high-profile "high turnover" three characters were written into the red-headed document, which made it a focus of public opinion.
But in fact, the "high turnover" in the real estate circle is far more than the Country Garden family.
For example, Vanke, which first proposed a high-turnaround model, put the “5986 model” for a long time (starting in 5 months, starting sales in 9 months, selling 80% in the first month, and 60% of the products must be residential) As a magic weapon for its development and growth.
Huang Hesen, chairman of Taihe Group, also requested that “the focus will be on strengthening the high turnover in 2018, and the project will pursue a six-month opening speed” and publicly stated that “high turnover is profit, which is competitiveness.”
Even the central government boss Bao Lili also clearly stated in the 2018 general manager work plan that under the new situation, the company will firmly implement the strategy of “high turnover, strong return, moderate leverage” and emphasize high quality growth.
In the eyes of many people, housing companies are scrambling to regard high turnover as the only rule of enterprise development, which is nothing but benefits.
However, Rui Teng believes that high turnover is not a voluntary choice for real estate companies, but a passive and has to make choices.
Why do you say that?
First, people who understand real estate should know the DuPont analysis, namely:
Return on net assets = net profit margin x asset turnover rate x equity multiplier
These three factors are generally referred to as profit margins, turnover rates, and leverage. Any one of them will increase the rate of return.
So what about reality?
On the one hand, land prices have risen and the market competition has become fiercer. The space for housing companies to increase profit margins by reducing costs or raising prices is small;
On the other hand, with the “de-leveraging” financial policy orientation and the narrowing of various financing channels and the increasing difficulty of financing, the risk of housing companies increasing their leverage is great.
In other words, in the current market context, housing companies want to increase the rate of return, can only be achieved by increasing the turnover rate.
In addition to the reality, there is another reason for housing companies to be keen on high turnover is to avoid risks.
Everyone knows that real estate is an industry that is greatly affected by the policy. Today, the market is skyrocketing and may fall to the bottom tomorrow. Therefore, for housing companies, the best way is to quickly fix.
For example, Country Garden has benefited a lot from the high turnover.
Rui Teng looked at Country Garden's 2017 annual report and found that in 2017, Country Garden's sales performance was 550.8 billion yuan, and the return amount was 500 billion yuan, accounting for 90%; and despite its large scale, the net debt ratio was only 57%. .
Country Garden can have such financial data, which is largely due to high turnover, because the turnover is fast, the funds are returned quickly, and the interest cost is low.
It is no wonder that Yang Guoqiang, Chairman of Country Garden's Board of Directors, has publicly stated that "high turnover is the most effective means of resisting any risks."
2, fast is not by sacrificing quality
Although high turnover is an inevitable choice for current housing companies, from the perspective of buyers, high turnover means that the development cycle is compressed, which will inevitably affect the quality of construction and engineering.
Therefore, whenever there is a construction accident or a house quality problem, everyone will unconsciously aim at the high turnover.
So, is speed really equal to poor quality? Let's look at an example.
In the 1980s, when the China Construction Third Bureau built the Shenzhen International Trade Center, it set a speed of three days to build a floor. It became the "Shenzhen speed" that is proud of the history of Chinese architecture. It was regarded as a typical for a long time. Widely publicized.
Nowadays, more than 30 years ago, the quality of the International Trade Building has not caused any problems. It is still one of the landmark buildings in Shenzhen, attracting tourists from all over the world every year.
It can be seen that there is no absolute causal relationship between fast speed and poor quality.
The technology of the 1980s was obviously far worse than the current one, but at that time people were still praised for the speed and efficiency of building a house. Why did the 21st century, when technology advanced by leaps and bounds, was criticized again and again?
Rui Teng believes that there may be some misunderstandings in this.
Take Country Garden.
First, many people spit out the high turnover of Country Garden. It is a mistake to think that Country Garden can build a building in three months, but Ruiteng carefully looked at the high turnover of Country Garden. The three months in the document are only from the land. Opening time, not time of delivery.
In other words, the so-called high turnover of Country Garden does not include the stage of building a house, so high turnover and high quality are not contradictory.
Second, the high turnover of Country Garden is not achieved by cutting corners. Its “fast” is based on system operation and technological innovation.
First of all, Country Garden has a mature and independent real estate development chain, from design, planning, construction to decoration, property management, covering almost every aspect of development, can be undertaken and implemented by Country Garden. This integrated operation mode can effectively pre-position part of the work and reduce communication time, thus achieving rapid turnaround of the project.
Secondly, Country Garden's "fast", more importantly, comes from its technological innovation.
For example, at the end of 2016, Country Garden launched the self-developed SSGF construction system, which has the advantages of high quality, high speed and low energy consumption, which has caused great repercussions in the construction industry.
Through the SSGF system, the base period for a 30-story high-rise house from the start-up to delivery was reduced from 25.1 months to 15.8 months, saving about 9.3 months.
In addition to the fast completion and speeding up the turnover, the SSGF construction system also integrates more than 20 new construction systems, such as aluminum alloy formwork, intelligent climbing frame, full cast-in-place concrete exterior wall, high-precision floor, drain pipe pre-buried water stop High-precision block + thin plastering, floor water interception system, etc., can effectively solve problems in traditional construction methods such as leakage, making it possible to "build a high-quality house quickly".
▲ Country Garden SSGF Process
Since the labor force is reduced by 1/3 compared with the traditional process and the construction speed is about 1 times faster than the traditional construction system, the customer can not only purchase high-quality products at an economical price, but also reduce the quality hazard while improving the construction efficiency. The need for customers to settle in new homes faster.
At present, this technology has been promoted and applied in hundreds of projects in Country Garden.
3, the support behind the high turnover of Country Garden
Of course, fast or slow is actually a matter of housing enterprises, and buyers are most concerned about the quality of products.
According to Ruiteng's understanding of Country Garden, as a developer, Country Garden has done a lot of work on the quality of the project.
Last year, Country Garden set 2017 as the “Quality Management Year” of Country Garden, and strictly followed the quality management requirements of the national “Compulsory Provisions for Engineering Construction” to address possible quality problems such as structural safety, leakage cracking, perception, and finished products. The destruction, some security loopholes, etc., set the engineering quality red line, and strictly control the quality of the project.
In addition to the requirements in technology, raw materials, and technology, management requirements have also been raised. For example, the simulation acceptance must be carried out one month before delivery, and the customer's perspective is used to check, and the inspection is passed before it can be handed over to the customer.
To this end, Country Garden has also developed a unified format of propaganda hanging boards, posted at the project site, project management office, group corridors and other places, even the bathroom is not let go, always warning Country Garden people understand and strictly abide by the red line management regulations.
In addition, the Group Engineering Management Center also set up a special inspection team to conduct surprise inspections, and immediately issued rectification orders, warning letters, and fines.
Through innovation, Country Garden has also vigorously promoted four new technologies. In addition to the above-mentioned SSGF industrialized construction system, it also includes prefabricated buildings, aluminum alloy stencil processes, and steel support systems, which fundamentally improve the quality of the main structure and reduce common quality problems.
For example, the use of aluminum alloy stencils instead of traditional wood molds can make the stencils more precise and stronger. The concrete structure can be formed at one time without grinding and repairing. In addition, the installation efficiency of workers is higher; each building only needs to be equipped with a set of aluminum molds. Set up the turnover material yard, the site construction is more civilized; Moreover, the aluminum alloy template can be used repeatedly for 100-150 times, and the cost is lower; the aluminum mold material can be recycled, and it is also very energy-saving and environmentally friendly.
Another example is the steel support system. Country Garden uses a new steel support reinforcement system to replace the traditional wood for stencil reinforcement. The new steel support reinforcement system is made of cold-rolled steel. Compared with the traditional wood, the steel backing is stronger and less deformable. Once the concrete is poured, it can also reduce the sanding repair.
▲Country Garden Steel Support System
In order to bring a better living experience to the owners, Country Garden also strives to achieve the perfect details in terms of partition walls, doors and windows, floor drains, air conditioning, reasonable materials and crafts.
For example, the door used by Country Garden is the 6 most safe, soundproof and durable selected by the Group Design Institute from 27 doors; the floor is also strictly selected to meet and exceed environmental standards, such as solid wood composite flooring, use Waterproof and environmentally-friendly adhesive with low free formaldehyde, the formaldehyde emission of wooden furniture reaches the European EI environmental protection standard.
It is worth mentioning that it may be because the chairman of the board of directors, Yang Guoqiang, is a construction worker himself, so he attaches great importance to the quality of the project.
It is said that Yang Guoqiang personally climbed the air conditioner to find the cause of the noise, and finally reduced the noise decibel from 40 to 33.
He also personally improved the floor drain several times. After six attempts, he finally designed a floor drain that is easy to install and low in cost.
The amount of water stored in the new floor drain is more than four times that of the traditional floor drain. The water seal is 60mm. The floor drain parts are molded at one time. There are no connecting parts inside. The structure guarantees the amount of water leakage, effectively avoids water evaporation, floor drain and odor overflow. At the same time, it can achieve rapid drainage, no water accumulation, and quick and easy maintenance in the future. The price is 60% lower than the market.
▲ Country Garden new floor drain design
From the behind-the-scenes strength of supporting Country Garden Speed, Country Garden's high turnover advantage comes not only from mature product lines and engineering development processes, but also from strong product strength.
So in the end, high turnover is a system of capabilities, it involves design, development, marketing, products, costs and other aspects, a link is not done well, it is possible to lose all.
In recent years, many housing companies have claimed to learn the high turnover of Country Garden, and even some companies in the non-real estate industry are learning, but very few can really learn the essence. Therefore, high turnover is actually a technology, it is not as high as you think.
This year, Country Garden has designated 2018 as the “Management Quality Year” of the company, which is expected to go further in terms of project quality and product quality.
This is also the case, Country Garden has the courage to openly say: fast turnover is not equal to poor quality, Country Garden's construction site is open 365 days, accepting social supervision.
As the saying goes, slow work is only fine. But in today's real estate sector, the company's operations must also speed up.
Therefore, there is nothing wrong with high turnover. The key to the problem is not that the housing enterprises should not go higher, but how to do a good turnover and make both speed and quality equal. This is also one of the ability of housing companies to break through in the future competition.
Rui Teng admits that the Country Garden is indeed not perfect, but since it can sit on the top spot in the industry, it naturally has its extraordinary. Therefore, there are deficiencies that can be approved, good to learn, and eclectic, in order to promote the progress of the entire industry.