How to describe the current situation of land sales?
If it were five years ago, Ding Yun could absolutely sell all the land she wanted to sell with ease, and not at a low price, but at a high price.
Even two or three years ago, it was much easier to sell.
But recently, not only small real estate companies, but even giant real estate groups dare not acquire land on a large scale.
They even dare not develop the land they already own.
Their capital chains and cash flow are extremely tight.
Newly auctioned land is massively failing to sell, let alone the land accumulated by large real estate developers.
Generally, land that falls into the hands of real estate groups, if it's in a particularly good location and profitable for development, would have been developed long ago. Land that has been held without development either has a poor location or was acquired impulsively with the expectation of appreciation.
Therefore, selling land is genuinely difficult.
Large real estate groups do not lack land; they can't even develop the land they already own, so why would they be anxious to buy more? Small real estate companies might be able to handle acquiring ten to twenty acres, but a hundred acres is truly beyond their capacity.
As a result, Ding Yun has been here for three months.
Not a single piece of land has been sold.
How could she not be anxious?
...
In the conference room, all the high-level executives primarily responsible for land acquisition had assembled, filled with trepidation. They couldn't help but be anxious. Ding Yun had initially made three demands:
1. Implement a new real estate sales profit-sharing model.
2. Offer new homes to purchasers of unfinished properties.
3. Sell land.
The first two points had already yielded results, even remarkable ones, bringing in considerable liquidity and resolving much negative public opinion. Only the land sale aspect, however, had seen no progress whatsoever. How could the responsible parties not be anxious?
"Is selling land really that difficult?"
Although there was no direct accusation, Ding Yun's tone was clearly one of dissatisfaction. Even if a piece of land was sold at a loss, she would have felt a glimmer of hope. But with no land sold in three months, Ding Yun herself was feeling uneasy, doubting just how poor the quality of the land they held was.
"Director Shi, it's not that land is difficult to sell, but that land in less-than-ideal locations is difficult to sell. If our group's land were in a first-tier city, even in the fourth or fifth ring roads of a first-tier city, as long as the price wasn't excessively exorbitant, it could be sold easily.
However, when Old Director Shi was expanding, he was already a step behind others. He also felt that land prices in first-tier cities were too high and worried about not recouping costs. Thus, he intended to adopt a strategy of surrounding the cities from the countryside, prioritizing the acquisition of land in second and third-tier, or even fourth and fifth-tier cities, believing that prices would inevitably rise to those cities, giving him a first-mover advantage and guaranteeing no losses.
The result was that prices did increase, but not many houses were actually sold, and the vacancy rate was too high.
Second-tier cities are slightly better, but not by much.
They are nowhere comparable to first-tier cities.
Furthermore, many smaller cities do not lack land for sale; there are plenty of plots available locally, and real estate developers have choices. They have no need to buy from us."
In the absence of any achievements, employees naturally prioritize explaining difficulties and expressing hardships. Moreover, some of these difficulties were not fabricated but were indeed real, thus they spoke with considerable justification.
"Director Shi, the impact of the internet on the real economy is too great. Even commercial district properties, which were previously never difficult to sell, are now hard to move!
Let alone land in less desirable locations."
"To put it bluntly, most of the land our group holds is not considered prime assets. Everyone is smart; it's hard to find buyers."
"A significant reason for the company's heavy debt is Old Director Shi's aggressive land acquisition. The land acquired has put us in a difficult position.
If we don't develop it, it will be reclaimed when the deadlines expire.
If we develop it, we won't sell much and will incur even greater losses!"
Listening to her employees' complaints, Ding Yun pondered for a long time.
"We can't drag this out any longer. Here's what I'll do: I'll grant you further authority to split our land parcels. Hundred-acre plots are difficult to sell, but plots of a few acres might be easier. I recall many cities allowing us to transfer land in separate parcels.
Additionally, have the legal department specifically research relevant laws.
Exhaust all legal means to make that land easier to sell.
In short, the current objective is to clear inventory at all costs. Also, do not solely focus on selling land to larger real estate groups.
Send more people to thoroughly explore those seventh and eighth-tier small cities.
Specifically target local real estate developers in those areas.
See if we can sell the land to them.
Furthermore, let's increase the rewards. The highest permissible discount for that land can reach ninety percent. For any sale at ninety percent, a commission of two-thousandths of the selling price will be awarded as cash. If sold at the original price, a commission of five-thousandths will be awarded.
If it can be sold at a premium.
The entire premium amount will be considered as commission!
My requirement now is not to make a profit, but to clear inventory as quickly as possible. I can forgo profit, letting the employees earn, but the inventory must be cleared swiftly.
Otherwise, how will we repay the bank loans?
Additionally, this land sales commission plan is not limited to your department. Any employee of our group, regardless of their position, even an intern, will receive this commission if they can successfully sell a piece of land.
To ignite the employees' fighting spirit, Ding Yun is going all out. Previously, she merely offered a three percent commission on the premium. Now, she has eliminated the need for a premium, with the entire premium amount being considered a reward.
If you can sell ten billion worth of land for twelve billion, then the entire two billion will be considered a reward.
If someone truly has the capability to sell the land, they could become rich in an instant. Who wouldn't be tempted by such a commission?
As the saying goes, a generous reward will surely bring forth a brave man.
What's more, this time there are hardly any restrictions.
Any employee can participate.
Consequently, before long, a large number of employees directly applied for land information, wanting to try their luck. Even many high-level executives with connections were eager to give it a shot. After all, for land worth billions, even a small premium could amount to tens of millions or hundreds of millions. If someone could successfully close a deal, they could retire immediately.
If you don't try, how will you know if you can succeed?
In addition, the sales staff specializing in property sales also received wind of this and actively participated.
Then, the entire Shi Group entered a state of full mobilization.
It must be said that even though most people were not professionals, with increased numbers and extremely attractive benefits, some managed to sell land through immense effort, even resorting to trickery and deceit.
Although the premium was not high, it amounted to several million.
Ding Yun immediately disbursed this money.
When everyone saw that it was real, and without any delay, the rewards were credited as soon as the land sale payments were received.
What followed was undoubtedly even more diligent efforts to sell land.