Chapter 173: Theory of Real Estate Operations

With the latent dangers already foreseeable, Xiao Kaitian’s primary consideration after fully resuming his duties was the production of mecha.

He had originally expected the military's response to be even swifter. To his surprise, due to the epidemic last year, many military resources had been diverted to support various regions, resulting in some delays in project advancement. What came as an unexpected twist instead was that the construction of the high-speed passage between Haidu and Hong Kong City had been prioritized.

This meant that the demolition and reconstruction of the old urban districts in Hong Kong City were about to begin. According to the tripartite cooperation agreement, in addition to receiving replacement housing, storefronts, and other compensations in the new district of Hong Kong City in the future, these displaced households would also obtain an apartment in Qing Tang Tian Xia as an additional ancillary compensation for their temporary residence.

Of course, there would be those who were unwilling, and they could choose a property exchange instead, arranging their own accommodations until the new district of Hong Kong City was fully developed, at which point they would opt entirely for compensation housing in the new district.

This sudden development caused the status of Qing Tang Tian Xia's real estate department to rise rapidly. Fang Lei, the sub-project general manager currently in charge of this sector, instantly became a sought-after figure in the company.

He was a thirty-five-year-old young man, shrewd and capable, who had spent many years lingering in Haidu's real estate industry. He had a crystal-clear understanding of various residential developments, property management companies, and the like, making him a talent specifically poached by Public Relations Director Tang Tian with considerable effort.

In the large conference room on the forty-sixth floor of the headquarters building, the thirty-meter-long bubinga solid wood conference table suddenly looked a little cramped.

Personnel from all departments were fully assembled. With the exception of the High-Tech Industrial Park, which was directly managed and operated by Xiao Kaitian, all other departments forming the major corporate framework—such as the Film and Television Department, Real Estate Department, Business Development Department, Marketing Department, Sales Department, Administrative Department, and Public Relations Department—were now in place, everyone uniformly dressed in custom high-end Hermès suits, exuding the aura of corporate elites.

The protagonist of the meeting was Fang Lei. He had long made thorough preparations for this, and a thick stack of operational plans lay in front of every person, which he was now explaining in detail.

"Everyone here has a clear idea of the situation regarding our Qing Tang Tian Xia project, so I won't repeat the explanation, but our current disadvantages are also extremely obvious." At this point, Fang Lei deliberately paused, sweeping his gaze slowly across the crowd.

"Located in the suburbs with inadequate supporting facilities, a lack of comprehensive education, medical, commercial, and entertainment infrastructure—all of which are intimately tied to the occupancy rate. From a normal person's perspective, setting housing prices far below the market transaction price in Haidu is the immediate conclusion one would draw."

"However, my operational plan is different. On the contrary, what I am operating with here is a price fifty percent higher than the market price as the baseline for our transactions."

With that, he deliberately picked up the coffee cup in front of him and slowly took a sip. Sure enough, the people present began whispering to one another, and a brief murmur of discussion broke out in the conference room.

What on earth was this? A product that completely defied the market—what gave him the confidence to believe it could sell?

However, everyone present was a senior elite in the corporate workplace and understood the principle of building up momentum before a breakthrough. Since Fang Lei dared to do this, he inevitably held a trump card; no one was willing to be cannon fodder and end up publicly humiliated.

The aftermath of the minor commotion was that the atmosphere quickly recovered, and everyone's focus became even sharper as they listened to Fang Lei's subsequent explanation.

"With this linkage between Haidu and Hong Kong City, I believe there will be official and media announcements before long, and I think," Fang Lei leaned forward, looking at his colleagues around the conference table, "everyone can foresee the resulting shockwaves."

Once the official media issued a defining report, the appreciation of land value in this area would be unquestionable, and the rapid appreciation of the Qing Tang Tian Xia real estate project would be inevitable.

"I have meticulously compared the financing situation of this sector, combining the company's current financials with the directional focus of our market positioning. The conclusion I've reached is that we cannot afford to languish in a passive 'Buddhist-style' promotion, waiting around for appreciation."

Although Qing Tang Tian Xia had secured financing and received support from military funds, it was also a fact that massive loans remained from the early stages. The majority of these loans had been poured into the construction of real estate and commercial complexes, which constituted the areas where the company's capital was tied up the most.

"Therefore, I believe we must first restrict the personnel relocated from Hong Kong City under the demolition compensation scheme. By not actively promoting the matter and letting things transition naturally, given the inherent sense of superiority held by the people of Hong Kong City, I believe very few will choose to settle in Qing Tang Tian Xia, which plays right into my hands."

"Secondly, the prices we put out will be one and a half times higher than the market price, which will definitely scare away the overwhelming majority of normal buyers. However, for those with strategic investment vision, they will inevitably perceive our future value."

"What we are targeting are precisely such individuals, or rather, such pools of cash-flow capital—or colloquially speaking, the market liquidity entering Haidu for real estate speculation. We will harvest them as comprehensively as possible."

"In this way, we can rapidly resolve the repayment issues of our cash-flow loans while simultaneously shifting the rare long-term risks onto these people."

"Based on my analysis, the success rate reaches seventy-one point four percent. In the commercial realm, this is essentially a position of guaranteed profit without losses."

"Combined with the ancillary rent-free and low-rent policies rolled out by President Xiao last year, I believe our supporting facilities will rapidly flourish in a short period of time. Once the commercial amenities catch up, housing prices will inevitably rise, thereby entering a virtuous cycle."

Following this eloquent analysis of real estate operations, everyone finally understood Fang Lei's intention: rapidly liquidating the properties to cash out, which would vicariously promote the development of supporting facilities, which in turn would stimulate housing prices, ultimately achieving the goal of turning the entire development into a hot commodity.

"There are risks here," a senior management executive raised a perspective. "What should we do if we encounter people hoarding properties later on and refusing to release them to the market?"

"With a move exceeding market prices, our group will undoubtedly face skepticism. Director Chen's affair from earlier has only just settled down, Director Fang; the direction of public opinion on this front cannot be ignored."

"Even if we cash out at one point five times the market price, the actual enhancement of value later on is the key. I won't talk about a doubling, but a thirty percent appreciation in profit is something we must achieve."

Judging from Fang Lei's overall framework, those who understood the group's affairs largely approved of it to a certain extent. The feedback they provided was more of directional advice, given that the vast majority of the company's original funds had been entirely poured into the construction of complexes, residential buildings, and ancillary facilities.

"We can break this down into finer details here. I think..."

"The degree and control of purchase restrictions need attention, especially regarding the commission limits for frontline personnel..."

"In terms of media guidance, we also need to pay attention. After all, the company has had negative factors in the past, and there are still quite a few haters..."

"As for the supporting facilities, the service must keep pace; that is the fundamental draw for residents."

"It seems our inter-departmental communication needs to be further strengthened in the future. I suddenly realized that we really are a mixed stew... Oh, no, I mean a major corporation."

At this remark, everyone burst into laughter. Qing Tang Tian Xia was inherently a project where every link was closely interlocked, and none could do without the others. Interaction and mutual cooperation constituted the true demeanor of the entire team.

Xiao Kaitian put away his phone with a satisfied expression. He harbored no worries whatsoever about this group of partners of his.