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On August 14, at the 2024 Boao Real Estate Development and Construction Agency Conference, Tang Xiang, deputy general manager of Poly Developments and Holdings, stated that with the gradual clearing of industry risks, the worst time for the real estate industry has passed and the life cycle is still continuing.

Tang Xiang believes that after the market adjustment, real estate companies will face two major changes. First, the early regulation will be more resolute and powerful, and the overall impact on the industry will be smaller; second, as risks are cleared, corporate profits will gradually recover.

"We know that high-quality development has become an important task in the country's modernization drive. The same is true for the real estate industry. The entire industry has entered a period of shifting growth rates." Tang Xiang mentioned that current customer demand has also changed significantly. Customers have begun to gradually shift from wanting to live in a house to wanting to live in a good house.

"Many real estate companies actually have the same feeling now, that is, home buyers are beginning to pay less attention to the strength of developers. The strength of developers is no longer equal to the delivery strength. The ability to deliver quality has become an important factor in determining whether home buyers buy or not. This is the change in the new cycle of the industry." Tang Xiang said.

"The perception of real estate industry customers towards houses can be roughly divided into two stages. In the past, customers mainly knew the company but did not have enough knowledge about the product. Now it is the other way around. Customers are more concerned about the quality of the project and less about the developer. For this reason, developers need to establish new connections with customers by quickly improving product strength."

Tang Xiang believes that the current homebuying group has higher and higher requirements for product appearance and functionality. In the future, real estate may need continuous iteration of product brand series like cars. At the same time, products need to be adjusted according to customer preferences, rather than blindly copying. Real estate companies also need to establish a management model of "proofing-packaging-iteration" in product creation.

Daily Economic News