Pan Shiyi said that house prices will fall in the era of artificial intelligence, and SOHO China will transform into a light asset platform

Editor's note: This article is from Securities Daily, author Wang Lixin; 36 Krypton is published with authorization.

A few days ago, SOHO China announced that it had sold or planned to sell three properties in Beijing and Shanghai within 10 days. The industry estimated that the value of these assets exceeded 10 billion yuan. In this regard, Pan Shiyi, chairman of SOHO China, told a reporter from Securities Daily that "buy low, sell high" is the basic law of doing business. Next, SOHO China will speed up the layout of SOHO 3Q products, transform into light assets, and do Asset-light platform.

On the evening of July 11, Pan Shiyi said at a dialogue titled "The future is here - Pan Shiyi talks about new forces in artificial intelligence" that the arrival of the Internet era and the artificial intelligence era is anti-real estate, which means that housing prices will fall.

In fact, a few days ago, Pan Shiyi bluntly told a reporter from Securities Daily that the business model of "land acquisition-development-sales" in the real estate industry has basically ended by 2017. Land prices are high and real estate companies have very low profit margins. Low, the ceiling is already on its way, or even already here.

On July 11, Pan Shiyi talked about real estate again. He said, "The reason why real estate is developed is because people have the desire to own and have a real estate certificate. The desire to own has contributed to the continuous rise in housing prices. In the era of artificial intelligence and the Internet, , using is more important than owning, and sharing is more important than using. The advent of the Internet era and the era of artificial intelligence is anti-real estate, which means that housing prices will fall, so we need to be asset-light and build a platform."

Pan Shiyi said, "In the past 20 years, developers have been too diligent and built too many houses. For example, the houses we built in one year may be equivalent to the houses built in the Victorian era. The vacancy rate of houses is also very high now." In the Internet era, the sharing economy is more important. "Let every square meter of house and every parking space we build can be fully utilized like a shared bicycle. This is the future of real estate. Today, how much land do you own? Houses are not important. This is an old concept. Therefore, I need to learn more about the Internet and artificial intelligence to transform the heavy-asset model into an asset-light platform."

As mentioned a few days ago, Pan Shiyi said that SOHO China will no longer build houses by acquiring land. The next development of SOHO 3Q will also follow the direction of asset-light development. This can also be understood as SOHO China as a whole moving towards asset-light development. transformation.

As for SOHO 3Q's next expansion method, SOHO 3Q operations director IVY said that the current idea is to rent vacant real estate resources in the existing market and not export management for the time being, because OEM is not conducive to the control of the quality of operation and management.

According to Pan Shiyi's design, he may cooperate with developers to reduce rental costs to expand 3Q. It is expected that SOHO 3Q will develop by an order of magnitude next year, and the overall occupancy rate of SOHO 3Q will reach 95% next year.

It is worth noting that Pan Shiyi will be the first to launch a round of capital operations on his transformation to light assets. Pan Shiyi revealed to a reporter from Securities Daily that 17 SOHO 3Qs will be integrated to raise funds to realize their brand value. As for whether there are plans for a spin-off and listing in the future, Pan Shiyi said that various possibilities exist.