2015-05-18

Can Crowdfunding Slash Real Estate Costs By 1/3?

U.S. real estate crowd funding: With $1 Billion Invested And $100 Entry Points, Real Estate Crowdfunding Grows Up
A recent study from Massolution reports that crowdfunding investors injected $1 billion into the U.S. real estate market last year. By the end of 2015, that number should climb to $2.5 billion. Advances like $100 investments, debt participation and availability to foreigners are contributing to this projected surge.
Google translation of 房产众筹开发即将启动 房价真的会降1/3吗? (iFeng) below, along with a video on the topic from late last year.


2014 known as public property to raise the first year, green, Fang Xing and other housing prices will "raise the public to buy a house," this model on its head. However, all the chips in the real estate industry development intervention, has been facing policy barriers, until last November, Li Jiabao chaired a State Council executive meeting, the first time after "raise public equity financing to carry out the pilot" mode was ushered raise public policy vent. Although the revised "private equity financing during the public management approach" has not yet announced, but also for the public to raise deeply involved in real estate development segment opened the door.

Property developers in order to raise public success, which preconditions need to have? By raising public development really can reduce the price? "We pick up the phone ...... according to your hopes to find the corresponding item in the custom platform, according to your wishes put forward what kind of house you want, you can initiate the public to raise those people, to build a house here."

May 9, 2015 under the new normal real estate, "thinker" Feng Lun in Wenzhou City Federation of Industry, the "Daily Economic News" and the New Hope Group, jointly organized by the China Commercial Real Estate Development Summit Forum on the future of real estate development made public raised above Prospect. He said the move could make prices fall at least 1/3.

Feng Lun not talked about is that this idea has become increasingly close to reality. Late this month, Country Garden will hold a press conference to announce the company at the end of April in Shanghai photograph of a land development plan to raise the public. Meanwhile, Greentown Greentown will also be launched early next month to raise public plan version.

These programs can really let prices fall 1/3? It is still unknown, because real estate developers to raise the public need to have a lot of preconditions, but these conditions are not yet ripe.

Housing prices than try to raise the public water development

In 2014, the industry as public property to raise the first year. Last year's "double eleven" period, green, ocean, Fang Xing, etc. Housing prices will raise real estate all this marketing model on its head, by means of which FangXing raise public property won gold over 4.2 billion yuan.

A marketing executives to raise public participation in green told the "Daily News" reporter, real estate and the public to raise the key is a marketing way, only cohesion explosive node at a particular time to form.

In addition to all the chips to buy a house outside, last year it was proposed "to raise public development" concept. Its intention is that the current high prices, developers can avoid a lot of the public to raise the cost of links, for consumers, can get more affordable rates than the market demand for the purchase and personalized; For developers, the equivalent of locked in advance of consumer segments.

In this bright future, driven by a lot of housing prices are trying to use public funds to develop real estate projects. "Real estate sale system itself is equivalent to a public chips developed." Sichuan Elixir of Love Real Estate chairman Fan Yibo said that the current Internet as banks and join the development of the concept of the public to raise more and more heat.

It is reported that late this month, Country Garden will announce a block of Shanghai to raise public development plan. According to media reports, Ping An Group has recently invested 100 million yuan to raise public equity platform set up "before the congregation to raise sea", business focus is positioned as innovative public to raise equity, real estate and so on all the chips.

Ping An's A shares to raise public operator source said, "We used to help developers finance the equivalent of all the chips. For example, there are 10 people or more people to participate in all the chips, we choose one or two as a representative of the developer The certificate mortgage property to us, we then go to the public to raise their designated account name, annualized investment rate of return of about 15% if the future prices fell, then raise the public's participation in the repurchase by the original price; if prices rise , and in accordance with the price earnings ratio of everyone to share. "" People raise the professional development of a number of relatively stronger, unlike physical real estate transfer procedures or apply directly to sign mortgage assets can. Focus needs to do a business plan to raise it, we are here there will be a more complete team to operate, including the assets to do due diligence, to sort out the future price of real estate, etc. Compared with the public to raise a house, all the chips developed operating mode similar, but involve a number of professionals should be broad. "the source added.

Difficult than expected

With all the chips touted concept development, it has been claiming to be "custom" mode forerunner of Hebei housing prices all the United States Group, the media has also been used as a model to practice the concept.

It is understood that all the United States Group is a long-term cooperation with Hebei Some institutions, state-owned enterprises and other custom development real estate projects. However, all the US group has been relatively low key. Nearly all the beauty of a senior industry source said, the United States and the general public will not be interviewed. Reporters call the US public official website announced the phone, but has been unable to get through.

"Hebei very popular 'orientation behalf of the construction', private funds very active." China City Industry Alliance chairman Chen kept, said all the United States was formerly an advertising company, is now using this model to project the subject of financing housing, precisely that housing prices the lack of other financing.

Chen kept the view that the public is more difficult to raise development done successfully, he met a living failures. "The friend wanted to raise funds to build in Beijing, there are hundreds of people to raise funds, but not agreed, prices cheaper by half compared to the market price, but not feasible, set up a development company, but compared to professional developers did not take to advantage."

In fact, the development of the public to raise difficult than imagined, and may even touch the red line policy, such as real estate sale. Fan Yibo believe that housing prices in the introduction of third-party financial institution, to take circuitous tactics, although can avoid illegal fund-raising, but the real estate industry as an ecosystem, all in violation of the real estate sale to raise development system, advance selling of suspected irregularities.

"Even with all the chips to get the land, how to solve the funding for projects? Means of an external lever or continue to allow the public to raise money themselves?" AsiaInfo Holdings secretaries Rongteng Hong put forward their own questions, he believes that the public will raise development The risk to the public to raise participants. If there is room to raise public enterprises involved in the development, it is very easy to form a disguised form of financing, even though not a disguised financing, housing prices how to ensure that all participants raise equity purchase priority listings of investment system? This is also a problem.

When standing in housing prices point of view, all the chips early in the project to develop more of a text, but there is no inter-entity model to convince the public to raise the participants, easy to bring sentiment and housing prices in the introduction of a third party, if not repurchased agreement or guarantee mechanism, these institutions can not allow the public to raise assured that thus become "pseudo public to raise."

Executive Secretary of the National Union real estate manager, Jiang Wei financial investment committee of the Executive Director said that all chips developed as a financial innovation, regulatory authorities should be encouraged to explore housing prices, the core is to manage the money, to ensure that funds used for those purposes, and reduce development costs and prices.

A source close to regional investment director of Country Garden executives pointed out that the development of all the chips is still a concept, the company did it want to participate in the upstream areas of real estate, you can also collect a lot of buyers information.

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