After its first public appearance in the land auction market in Beijing in March, Beihaojia Real Estate (hereinafter referred to as Beihaojia), a subsidiary of Beike Group, directly went south to the Guangzhou land market to test its waters again.
On June 25th, the AF040134 plot south of Hedong Road in Liwan District, Guangzhou was officially auctioned off. In addition to Poly Development, a Guangzhou based real estate company, the bidders also included Greentown and Beihao Home.
After 12 rounds of bidding, the above-mentioned land was acquired by Poly Development for a total price of 699 million yuan. After deducting the construction cost, the floor price was 28541 yuan/square meter, with a premium rate of 8.5%. This is also the first land in Guangzhou this year to have multiple real estate companies bidding and achieve a premium transaction.
From the bidding situation, Beihaojia has the lowest number of card raising among the three participating companies, and has never made a move in the last five rounds of bidding.
On June 26th, Beike responded to a reporter from the Daily Economic News that Beihao Home is currently in the business exploration period, focusing on suitable project opportunities and cooperation opportunities in mainstream first and second tier cities. Chengdu and Shanghai are both key first and second tier cities that will be given more attention.
According to Tianyancha, in addition to setting up companies in Beijing, Beihaojia has also established companies in Xi'an, Chengdu, and Shanghai since the end of last year. Among them, Beihaojia (Shanghai) Real Estate Co., Ltd. was just established on June 7th this year, and the licensed projects of all three companies include "real estate development and operation". In October last year, the preliminary review results of the second level qualification for real estate development enterprises of Beihaojia (Beijing) Real Estate Co., Ltd. have been made public.
Beike further stated that Beihao Home is positioned as a data-driven residential development service platform, with the core concept of C2M (Customer to Manufacturer, from consumer to manufacturer), and continuously polishing and verifying C2M's new housing product positioning ability through cooperation projects. Ultimately, it collaborates with partners (including brand real estate companies, local urban investment, land resource providers, financial institutions, etc.) and customers to build good products and services.
At a recent public event, Li Yujiang, the General Manager of Beike Beihao Home Chengdu, revealed more details. "Faced with multiple challenges such as current market sales pressure, reduced customers, and longer purchasing decision-making cycles, the C2M model plays a core role in promoting innovation in real estate development models. It proposes a new idea of finding customers first and promoting their joint participation in the development positioning of reverse customized real estate products."
From the above statement, it can be seen that Beihaojia does not want to fight alone in the secondary development, nor has it expressed its intention to become a developer. Its current plan is to divide its business model into two types: Project 9 and Project 10. The difference is that Project 9 is funded by Beihaojia's front-end preferred shares, while Project 10 is funded by the same equity of the front-end. The commonality is that regardless of the model, Beihao Home needs to participate in operational marketing.
Beike added Beihaojia business in July 2023 and has been laying out its business for nearly a year, but so far there have been no actual projects implemented.
According to the 2024 first quarter financial report released by Beike, the net income for the first quarter was 16.4 billion yuan, a year-on-year decrease of 19.2%; The net profit was 432 million yuan, and the adjusted net profit was 1.392 billion yuan.