Age of Legends

Chapter 277 Who is the younger brother?
"We should try to negotiate as much as possible. After all, the Lanyuan project is about to start pre-sales, and we should avoid any mistakes, as this will affect our subsequent land auction in Shahe Village," Wang Bowen said.

Xuhui Real Estate's projects fall under the category of integrated primary and secondary land development. This means that developers obtain land development rights from the government by undertaking public renovation projects, and in return for undertaking public welfare-oriented renovations, they receive a portion of the land as commercial compensation.

This was how small real estate companies entered the market in the early days.

The park city plan for Fuzhou has been launched, and now there is development and renovation everywhere. Large companies are acquiring prime locations, while smaller companies can only obtain land use approvals by undertaking public welfare renovation projects. However, some companies specialize in this route because, due to policy preferences, approvals for this route are quite fast.

As long as the funds invested in development and construction reach 25% of the total investment, and the construction schedule and completion and delivery date are determined, the entire project can be divided into several sections, and some construction can be completed first and pre-sold in accordance with the pre-sale standards.

The residential construction drawings can be reviewed during the park's construction phase. Through government coordination meetings on the park project, parallel approvals can be facilitated. Once the first phase of residential construction reaches the third floor, a pre-sale permit can be obtained. The entire process, from application to the first phase of residential units meeting pre-sale standards, takes no more than six months.

The money Chen Xuran borrowed from the bank, Liu Qi's investment, and Xuhui Real Estate's operating costs were enough to meet the policy requirement of "investing 25% of the total investment in development and construction." However, the funds were almost used up, and pre-sales were a way to recoup capital and even reserve funds for the next project.

The pre-sale of real estate originated in Hong Kong in the last century with the practice of "selling apartments off-plan".

The term "off-plan property" refers to a building development that is like a "flower bud waiting to bloom," while the completed houses are "blooming flowers and fruits."

The pre-sale system solved developers' cash flow problems by allowing them to recoup funds in advance, while also lowering the barrier to entry for homebuyers, leading to its rapid adoption in Hong Kong. Later, "pre-sale property speculation" emerged, where speculators bought off-plan properties at low prices and then resold them to profit from the price difference. This fueled the prosperity of Hong Kong's property market but also exacerbated speculative activities, leading to multiple property bubbles and financial risks.

This is the pattern that will continue to drive up housing prices across the country.

The early and lax regulation of pre-sale housing speculation directly led to the collapse of the Hainan real estate market in the 90s. It's no wonder, as developers could speculate on land based solely on blueprints, causing the market bubble to grow larger and larger. High leverage made the market unable to withstand market fluctuations, ultimately leading to its collapse.

The mainland's real estate industry subsequently developed a huge real estate bubble under this system, and only later, with increased regulation, did the market return to rationality amidst fluctuations.

However, just like inflation, it has both good and bad aspects, and the wheels of history keep turning.

And now, Huang Huifen and her group are in the middle of this battlefield.

"Is there a land plan for Shahe Village?" Zhang Chen asked.

“All plans follow policy. Where there are policy trends, everything will naturally get the green light. The plan that has been circulating for last year has now been released. The Rongcheng Municipal Government has invested 30 billion yuan to create the ‘Comprehensive Landscape Improvement Project along Shahe Village,’ which is a national-level ecological restoration demonstration project. Now the government urgently needs real estate companies to participate in the pollution control and landscape park construction in the relevant areas. Project companies like ours are the first choice. Even some real estate companies that didn’t start out in park renovation are eager to participate, after all, there are so many lucrative opportunities here.” Wang Bowen rubbed his hands together, eager to get started.

“Your godfather is right! The land auction in Shahe Village is about to start, and Lanyuan has secured funding for its pre-sale. I’m going to participate in the land auction as well. Otherwise, what will we do after this is all done? There will be no follow-up. We need to plan ahead and secure the next project. That’s how you should be a person – you have to be organized.” Huang Huifen even gave Zhang Chen a little lesson as she finished speaking.

As always, Huang Huifen never missed an opportunity to lecture Zhang Chen. Even while buying groceries, she'd seize the chance to say a few words. Even if she found ten yuan on the street, she'd wait for the person to return it and then pocket it, but still give Zhang Chen a lecture on how it was a temporary measure; next time at the market, she'd check with anyone who had lost money. Talking about money suddenly became less pedantic.

"Prioritizing real estate companies with experience in park renovation?" Zhang Chen asked. "Is this catching a favorable policy trend?"

"Of course!" Chen Xuran laughed. "Even I think that establishing Xuhui with my older sister was a stroke of luck, we were incredibly fortunate!"

The government's national-level ecological restoration project naturally offers numerous benefits. In the past, small companies like Huang Huifen's would likely have been unable to secure such opportunities; large, well-funded real estate companies would have monopolized them. However, Huang Huifen's Lanyuan project was quite well-known in Rongcheng. With the Lanyuan project as a foundation, coupled with the preferential treatment given to real estate companies with relevant experience in landscape engineering in Shahe Village, this opened a window of opportunity for Xuhui Real Estate to reap significant development benefits.

It is likely that companies that successfully participate in this governance project will accumulate considerable wealth in the future.

Therefore, for the Lanyuan project to be successfully pre-sold, Xuhui Real Estate would need the funds to acquire land in Shahe Village. This plan cannot afford to fail.

But Zhang Chen had another thought and asked, "Since we're prioritizing real estate companies with successful park development projects, isn't Liu Qi's Yipin Real Estate also our competitor?" Could there be some hidden agenda behind Liu Qi's sudden invitation to this banquet?
Wang Bowen said, "If you say our Lanyuan project and their Yipin Park are just across the street from each other, and therefore compete, that's one thing. But the Shahe Village area is so big, who knows how many real estate companies will come in. Even if one company developed it all, they couldn't handle it all. How can this be considered competition? It's not even a competition!"

Zhang Chen nodded, agreeing.

Liu Qi's dinner party was suspicious in every way.

“Then I’ll go and participate too,” Zhang Chen said.

"You clever little devil, how could I leave you out?" Chen Xuran nodded.

Wang Bowen said, "How about I tell Zhao Tao and the others that we're not afraid of Liu Qi if he tries anything underhanded, whether it's the legitimate or illegitimate side."

Zhang Chen said, "Although Brother Zhao has a good reputation, he's seriously building his career now. Godfather, don't always drag him down with you."

“I need to let him know about this,” Wang Bowen said. “Liu Qi is no pushover either.”

“If Liu Qi takes this path, his options will be limited, and he won’t be able to achieve much,” Zhang Chen said. In his memory, Yipin Real Estate did develop very well afterward. Although it was eventually eliminated by the times, Liu Qi was still considered successful. Later, because he was involved in the downfall of an official, he went abroad and became a wealthy man there, occasionally making headlines.

"Alright, you'll be there too. My son is capable; at least you got Liu Qi's 30 million from him!" Huang Huifen rarely praised Zhang Chen. It was clear that she was all bark and no bite. She appeared tough on Liu Qi, but in reality, she was also overwhelmed by some of Liu Qi's tactics. Zhang Chen's participation in the negotiations gave her confidence.

After the meeting ended today, Huang Huifen finally felt a bit more at ease and went home with Zhang Chen.

Zhang Chen logged onto QQ at night, but didn't go invisible, so that people from all sides would know he was online. When they needed to talk to him without having to call, they could chat online directly.

Wang Shuowei chatted with him for a few minutes, talking about the day's football game, and then asked if there was any hidden agenda. This must have been something Wang Bowen told him when he got home.

Then two more beeps sounded, indicating that Zhuang Yanyue's avatar was online. He had seen Zhuang Yanyue online when he logged on. Like Zhang Chen, she didn't hide her identity and usually appeared online.

Seeing that she was online, Zhang Chen felt that he had gone a bit too far in getting angry with her today. Ultimately, it was his own fault for not controlling his emotions, and her presence became his outlet. However, Wang Shuowei quickly contacted him, and Zhang Chen didn't immediately apologize to Zhuang Yanyue.

Now her message arrives, and Zhang Chen clicks on her profile picture.

Whale Fall's Sea: "I'm so sad today, in front of so many people... you treated me like that. Waaaaaah (crying), but considering how you feel today, I've decided not to be sad for now. I was only thinking about telling you about my progress as soon as possible, and I didn't have time to ask about you. In the end, I was a bit selfish..."

So, I'm sorry, Zhang Chen.

Even someone as slow-witted as me can make a breakthrough. With your intelligence, you're sure to do even better, so don't be discouraged (although I don't expect you to surpass me by a huge margin).

Looking at the apology message, Zhang Chen, sitting in front of the computer, was somewhat stunned.

Sigh... who is the younger brother anyway?!

(End of this chapter)