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"as a sub-segment of the real estate industry, construction agency has also shown the same characteristics since this year. not only that, the number of companies entering the construction agency market has increased year by year, and there are more and more companies bidding for single projects, but the net profit has gradually declined."

on september 25, at the "2024 14th china value real estate annual conference - ai empowers new real estate forces" hosted by the national business daily, liu bingyang, president of xuhui construction management, said in his speech: "construction agency is more than just 'construction'. in the downward phase of the market, problem-solving and service capabilities are the key to the industry's continued breakthroughs."

problem-solving ability during industry downturn

liu bingyang said: "real estate is a sustainable industry. although competition in construction agency is intensifying, opportunities still exist. as a service provider, to seek market opportunities, we must deeply understand the needs of the client. the more the market goes down, the more the client will pay attention to our problem-solving ability, that is, whether the services we output can deliver on our promises."

in liu bingyang's view, the construction agency industry, as a light-asset service industry derived from real estate, has clear expectations and clear market logic.

"the essence of problem-solving ability is the ability to customize solutions based on projects. for example, private enterprises are more concerned about profits, while state-owned urban investment companies focus first on compliance and safety, and profit is not the primary consideration. when it comes to specific projects, the client's demands at different stages and preferences for different land attributes are not the same, so targeted tailor-made solutions are needed." liu bingyang said.

in addition to traditional development capabilities, xuhui construction management responded to the government's call for "good housing" and explored new human settlement models. in suzhou, foshan and other places, it brought out the "four-generation house" problem-solving capabilities; in taihang water town, baoding, hebei, it linked the surrounding mountain and water resources to explore a customized model for cultural and tourism products. for stalled projects, xuhui construction management designed and renovated a demonstration area for a completed sales apartment in xi'an, creating a daytime coffee and nighttime wine scene demonstration area to reshape the customer experience; in the commercial plot of xuhui center in dongsheng, nantong, the customized business combination of commercial villas + apartments + clubs further solved the problem of customized construction of complex commercial and office plots.

comprehensive coverage of investment, financing, construction, management and withdrawal

"everyone thinks that construction agency is just about 'construction', but in fact we want to solve a package of problems." liu bingyang said frankly, "in the past, construction agency was all about processing materials, from flour to bread, and 'construction' was only a single dimension. the ultimate problem of construction agency is the asset problem. product positioning, financial resources, development and construction, sales strategy, self-sustaining operation, bulk breakthrough and other multi-dimensional capabilities are indispensable. so from the perspective of assets, construction agency means investment, financing, construction, management, and withdrawal, covering all aspects."

therefore, xuhui construction management re-examined the construction agency industry, stepping out of the traditional partner role. currently, the largest construction agency clients in the industry are: first, traditional private enterprises; second, urban investment companies, which have been acquiring a large amount of land since 2021 and need to better utilize these lands at this stage; third, amcs, financial institutions need to mobilize assets and restart projects.

"whether it is government-sponsored construction, construction relief or cooperation with amc, the first thing in the whole process is to provide good service, and the second is to adapt to needs, integrate industry resources, and help the client solve problems. therefore, xuhui construction management is based on service and tailors solutions to different customers, different projects, and different needs."

liu bingyang revealed that in the past two years, xuhui construction management has signed more than 170 projects, and the contracted area in the first half of 2024 has reached the second place in the industry.

"in this process, we have tasted the sweetness of innovation and breakthroughs, and we will continue to work hard in the future," said liu bingyang.

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