Chapter 1344: 923 The Seven Deadly Sins (2)
“Mr. Jiang, this plan is excellent, and I’ll definitely support it. However, the details need several companies to collaborate on their situations and conduct in-depth research. Otherwise, rashly advancing it may lead to irreparable consequences.”
Geng Zhida, the current leader of Hengsheng Group, again visited Great Wall Group.
Furthermore.
Niu Jili, the CEO of Su Da, was also present.
Of course.
This eting was not a coincidence; it was intentionally arranged by Great Wall Group. After all, cooperation is the future in this era, and everyone will be part of an alliance with shared honor and disgrace.
Regardless of Hengsheng or Su Da, they are both undoubtedly leading enterprises. Great Wall provided high-standard treatnt, with the three giants receiving them together.
“I agree with Mr. Geng’s words. Employee welfare housing can benefit thousands of households, but good policies, when implented, might not necessarily yield good results. This policy not only concerns our few corporations, millions of employees, but could also affect the entire country, so it truly needs ticulous research.”
The current predicant in real estate is mostly due to the era, but Hengsheng’s crisis undoubtedly played a significant role as a major catalyst.
Therefore, Geng Zhida’s expression of concern about the future of real estate was actually quite ironic.
Yet as a business leader, one must possess a broad perspective. Recognizing mistakes and improving is invaluable, and Hengsheng Group’s issues were caused by the jailed Mr. Geng, which has nothing to do with the second son of the Geng Family. Thus, after his words fell, Niu Jili quickly expressed his support.
For his goodwill, Geng Zhida gave a grateful glance.
As titans in their respective fields, everything was understood without words.
“Tailored to regions, tailored to individuals. If it’s rely addressing fundantal needs and utilizing the house’s basic function, there’s no problem, but it’s concerning if so might harbor other intentions. After all, the profit to be sought isn’t a small number.”
Geng Zhida continued.
“Mr. Geng, regarding Shenzhou’s real estate, you’re an expert. Great Wall Special Delivery has just recently launched, and currently, no employees are able to enjoy this policy. According to Mr. Niu’s data, Su Da has 90,000 employees with over three years of service, 30,000 with over five years. If three years is the benchmark, the company will offer welfare housing at 70% of market price, naly Hengsheng’s revived real estate projects. If employees receiving these incentives genuinely want to profit, they would definitely sell above the discounted price, otherwise, there’s no profit in it. Using three years and 90,000 employees as a base, if they increase the resale price to 80% of market value, 90,000 houses at a 20% discount flooding into the market, can it really impact the vast Shenzhou housing market?”
Jiang Chen seriously inquired.
“Based on docuntation, 90,000 households are negligible compared to the total real estate volu. But what about three years later?” Geng Zhida’s expression grew solemn. “Three years hence, by then, both Great Wall Special Delivery and Su Da’s employees will et the criteria, and welfare housing quantities will reach a million scale.”
“Mr. Geng, there’s one point, even with a 30% discount, not all employees can afford to enjoy this benefit.” Niu Jili reminded.
“Mr. Niu is correct.” Geng Zhida nodded. “Based on the previous inco of delivery personnel, buying a house was indeed difficult. But with Great Wall Special Delivery’s launch, the remuneration level in related industries has seen a significant increase. Of course, bearing first-tier city property prices is still unrealistic, even at 70% discount, but it shouldn’t pose much of an issue in third and fourth-tier cities.”
“In first-tier cities, like Capital City, a house priced in tens of millions, even discounted by a few million, doesn’t relate much to ordinary people. But in third and fourth-tier cities, it’s different. Presently, third and fourth-tier cities remain primary population areas. What situation that will unfold is imaginable; we’ll thoroughly ‘capture’ those cities.”
Geng Zhida joked, but nobody laughed.
Those present were no ordinary people; they were well aware of the aftermath of a cliff-like drop in housing prices.
The decline in ho buying costs seems beneficial, but that’s for those who haven’t bought a ho.
But for those who have already purchased property?
It’s tantamount to asset shrinkage.
And rember, the majority bought hos with loans. While house prices fell, loans and loan interest remained unchanged.
It’s foreseeable that at that ti, it will trigger trendous social conflicts. Many banks acquire interest by lending to ho buyers to make profits; essentially, if house prices drop by 20%, banks will accrue a trillion in bad debts, and many banks will collapse under the pressure, triggering domino effects where bank failures cause financial system contraction, countless business capital chains break, leading to bankruptcy, thereby causing currency devaluation and money losing its value.
When currency severely depreciates, property’s value preservation becos aningless, and funds will flow out. To rescue banks, the only way is mass printing of currency, increasing circulation, implenting loose policies, thus falling into a vicious cycle, exacerbating currency devaluation.
Coupled with real estate-related industries also facing setbacks, a massive population will beco unemployed, triggering an economic tsunami.
“Indeed, caution is essential.”
Niu Jili nodded silently.
After the two entrepreneurs departed, Cao Jinse said, “So the most prudent approach is still imposing strict tenure limits, disallowing welfare housing to be transferred, and ensuring these houses don’t hit the market within a certain period.”
Jiang Chen remained silent.
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