Siheyuan: My wife is Xu Huizhen

Chapter 662 Development of Tuen Mun

These newly built buildings in front of us have spacious and bright rooms, with sunlight pouring in freely, making people happy; they are equipped with all kinds of modern facilities, whether it is smart appliances or convenient elevators, which can bring great convenience to life; the beautiful community environment, with green trees and flowers, is like a quiet garden. Compared with the old houses, the difference is obvious and one can see the difference at a glance.

In order to attract more people to participate in the replacement, He Yuzhu also offered a special discount of 1:1.3.

This means that sellers can exchange for better properties at a relatively low price. For example, an old house of 100 square meters can be replaced with a new house of 130 square meters according to this ratio. The house area is greatly increased, and the living space is more spacious and comfortable.

How can people not be tempted by such huge benefits?

It seems like a good thing that has fallen from the sky and is placed in front of everyone. No one wants to miss this great opportunity to improve their lives.

In this way, through this clever exchange method, He Yuzhu successfully exchanged for a large amount of land and real estate.

The accumulation of these resources has undoubtedly laid a solid foundation for his future development, as if adding bricks and tiles to his career building to make it more stable.

The land and real estate in his hands are like precious treasures, containing unlimited potential, waiting for him to explore and develop. In the days to come, these resources may bring him more generous returns, helping him to continue to overcome difficulties in the business field and create more glory.

At the same time, the general manager of the construction company, Ma Dezhong, also gave He Yuzhu the latest report.

According to him, the project currently has a total of 792 units, and more than 300 have been sold.

During the sales process, the salesperson introduced the house types to the customer in detail, from the cozy layout of the two-bedroom to the spacious and comfortable three-bedroom, and explained the characteristics of each type clearly;

In terms of supporting facilities, from advanced elevator systems to complete security facilities and beautiful green areas, they are all presented to customers one by one;

The surrounding environment is not neglected either. The location and convenience of nearby schools, hospitals, shopping malls and other living facilities are informed in detail, so that customers have a comprehensive understanding of the house and thus facilitate the transaction.

In addition, more than 200 houses were sold through property and land replacement. Many residents saw the advantages of replacement and actively participated after comparing the huge differences between their old houses and newly built buildings.

The company has fully considered the actual needs of employees and launched an extremely attractive loan policy for home purchases.

With the support of this policy, more than 100 houses were purchased by employees through loans.

The employees have truly felt the generous benefits provided by the company. This tangible care has greatly stimulated everyone's enthusiasm. More and more people have actively joined the ranks of buying houses, happily planning a warm and stable future for themselves and their families.

So far, the project’s sales performance has been extremely impressive, with a total of 714 units sold, and sales data showing a steady upward trend.

This achievement demonstrates strong market demand for the project. The newly constructed buildings precisely meet consumer expectations in terms of design, construction quality, and surrounding amenities, earning them high market recognition and widespread favor among buyers.

However, the actual situation is that among this batch of houses, the 20 houses reserved for high-rise buildings have been separately divided out and excluded from the list of houses available for sale.

Excluding this special reservation, there are only a few dozen houses left for sale.

These remaining houses immediately became the focus of everyone's attention. Residents in the community, surrounding real estate agents, and even some passers-by paid special attention to them.

People often get together to discuss and guess what kind of people will become the new owners of these houses, and look forward to these empty houses becoming lively and filled with warm families in the near future.

After the sales report was completed, the tense atmosphere in the meeting room eased a little, like snow under the warm spring sun.

Ma Dezhong pushed the pair of black-framed glasses on his nose, and the metal frame flashed a faint light under the light.

He raised his hand and coughed twice to clear his throat, then in a calm and slightly majestic tone, he began to move on to the next important topic - introducing the various costs.

"So far, some buildings in our project have successfully completed the roofing work."

"If you have the opportunity to visit the construction site, you will see colorful flags fluttering in the breeze, workers moving around, and the roar of machines, which is very lively."

"As far as the current progress of the project is concerned, all work has already passed the halfway mark, and the overall progress is very smooth, fully in line with or even exceeding the expected plan."

He paused slightly, and his eyes, like a searchlight, slowly swept over everyone present. There was scrutiny in his eyes, as well as confidence in the project's results.

He then went on to say, “It’s worth noting that the specific construction costs are not much different from what we had previously estimated.”

"Every brick we purchase is carefully selected for its hard texture and uniform color, and every bag of cement is strictly checked for its grade and quality. Every expenditure is under our strict control."

"After meticulous calculations by our colleagues in the Finance Department day and night, the total construction cost of a single house, including raw material procurement, labor expenses, equipment rental, and other related costs, totaled 3.2 yuan."

Talking about the sales price, Ma Dezhong looked focused. He once again carefully flipped through the neatly organized documents in his hand, cleared his throat, and said calmly, "After rigorous calculations and based on the current detailed sales data, the average selling price of the houses in our project is 4.3 yuan per square meter."

"This figure is significant. The difference between the cost and the selling price clearly shows that for every house sold, after deducting all explicit and implicit costs, we can reap a profit of 1.1 yuan."

"This profit is not simple. It's like a farmer working in the fields all year long, enduring the wind and sun, carefully watering the crops, and toiling away. Finally, the autumn harvest arrives. The heavy, plump fruits plucked from the fertile fields are real. Holding them in your hands and seeing them with your own eyes brings you great satisfaction."

"I must emphasize that the profit mentioned here is the net profit after deducting all costs. Every penny is clear and there is no water or adulteration."

"At the outset of our project planning, we identified a total of 792 units, of which 20 were reserved for various reasons. The remaining units are selling very well, and the current total profit has been accurately calculated to be just over 800 million yuan."

"This money, like unexpected windfall after our team worked together to overcome difficulties, has landed firmly in the company's pocket. It's like a perfect report card, a beautiful answer to our hard work and efforts day and night during this period."

At first glance, this 800 million profit may seem like a piece of cake to those wealthy and powerful entrepreneurs who usually go to high-end business occasions and manage projects worth hundreds of millions of yuan.

They are used to making waves in the capital market, and the fact that they have only gained this little profit in half a year is really not something they would pay attention to, and it seems not good enough.

But if we change our perspective, delve into the details of He Yuzhu's project, and analyze the funds he invested, we will find that there is something else going on.

The construction of a house requires real money investment in every link, from the excavation of the foundation, the purchase of building materials, to the expenses of the construction team, and the total cost is 3.2.

The entire project covers many aspects including land acquisition, construction of multiple buildings, and creation of supporting facilities. The total investment amount after calculation is as high as 2535 million.

Considering this huge amount, the profit of 800 million only accounts for about one-third of the total investment.

However, we must not ignore a key fact: this is He Yuzhu's first foray into the real estate industry.

In this highly competitive and complex field, many experienced practitioners have inevitably failed. However, He Yuzhu has achieved such results in just half a year through his own exploration and hard work. This is already a very good start and has firmly established him in the real estate field.

However, in fact, the total amount of money invested by He Yuzhu was not just what was seen on the books, but as much as 300 million in cash!

Among them, the way of acquiring the land is particularly unique, which fully demonstrates He Yuzhu's extraordinary business acumen.

At that time, competition in the real estate development field was fierce, and everyone followed the convention and spent a lot of money to directly purchase land.

He Yuzhu, however, was clear-headed and knew that this approach would not only be incredibly costly, but would also greatly reduce flexibility in subsequent development. Any slight mistake could lead to a double dilemma of funding and planning.

After repeated consideration, he decided to find another way. After several days of hard thinking, he finally came up with a bold and innovative strategy - acquiring land by exchanging properties with residents.

Imagine that during that period, He Yuzhu worked tirelessly and frequently traveled through the old streets and alleys.

The old streets are narrow and deep, with mottled walls and slightly dilapidated houses on both sides.

He visited every household, each time he pushed open a creaky door, he was full of sincerity. When he entered a resident's home, he always greeted the host politely, and then sat on a slightly worn chair to chat with them at length.

His eyes were focused and sincere, and he patiently and meticulously painted a beautiful blueprint for his future new home.

From the modern architectural exterior with smooth lines and unique shape that sparkles in the sun; to the complete community supporting facilities, there are lush green gardens, play areas for children, and sports venues for residents to exercise; to the comfortable and convenient living experience, the smart access control system ensures safety, ample parking spaces solve parking problems, and 24-hour attentive property services.

Every detail is taken into consideration, striving to let residents truly feel the beauty of future life.

He first reached an agreement with the residents out of sincerity and bought their land on credit.

During this process, residents inevitably had doubts and raised various questions:

"Can this house really be built on time?" "Can the replacement area be guaranteed?"

He Yuzhu always smiled and answered their questions one by one in a firm tone to eliminate their concerns.

He then immediately set to work, with the construction site filled with dust and the roar of machinery.

Not only does he have to deal with the endless questions and concerns of the residents and patiently answer them, he also has to run around and coordinate resources from all parties.

In terms of purchasing building materials, he carefully screens suppliers and compares the quality and price of materials from different manufacturers, only to buy the most cost-effective materials; in the scheduling of construction teams, he reasonably arranges the workers' work tasks to ensure the orderly progress of the project.

Every link must be ensured to be foolproof to ensure the smooth progress of the project. The difficulty involved can be imagined.

As a result, He Yuzhu's initial investment of 300 million yuan primarily covered key aspects such as design fees, initial raw material purchases, and construction worker salaries. He hired a renowned design team to create a unique and practical architectural plan, and this design fee accounted for a significant portion of the initial investment.

There are also many considerations when purchasing raw materials.

In the early stages of construction, there is a huge demand for various raw materials, such as steel bars, cement, river sand, etc., which are indispensable basic materials.

Speaking of raw material procurement, there is one detail that must be mentioned here.

Even when purchasing raw materials, He Yuzhu showed extraordinary courage and strategy. He did not pay cash directly, but also used credit.

For example, when he purchased river sand from a company owned by Ho Ying-tung, although the supply of river sand in the market was not scarce at that time, the price fluctuated frequently, and high-quality river sand was even more in short supply.

He Yuzhu is well aware of this. Relying on the reputation he has gradually accumulated in the industry and his firm confidence in the success of future projects, he has conducted multiple rounds of sincere negotiations with suppliers.

He explained in detail to the supplier the scale, planning and broad market prospects of his project, and expressed his large and long-term demand for river sand.

After some difficult communication and negotiation, we finally reached an agreement to buy the goods on credit first;

The same is true when purchasing cement from Yingzhou Cement. Yingzhou Cement is well-known in the industry for its high quality, so it naturally has no trouble selling it.

He Yuzhu personally went to Yingzhou Cement Company and had in-depth communication with the other party's senior management. He not only explained the prospects of the project, but also impressed the supplier with his sincerity and order commitments for multiple future projects, and successfully won the opportunity to purchase on credit first.

Afterwards, when a customer comes to buy a property, the company will use the customer's loan to repay the debt.

This seemingly risky way of operating funds was actually a decision made by He Yuzhu after careful consideration.