Chapter 134: Step-by-step Development

Lin Ruoyan roughly estimated the cost required for the above-mentioned contents.

Her budget for consulting and design fees for industrial planning and specific planning and design is less than 10 million. She is not just planning the small piece of land she wants to develop, but the entire industrial new city. This does not include the money for specific research and development of courtyard villa products and drawing model group construction drawings.

The current planning of the new industrial city consists of only a few lines of text in a relevant report, without any pictures or texts, and without any detailed economic reference materials. From the perspective of real professionals, it is too unprofessional and vague, and it seems that it can be replaced by something else at any time.

If they truly want to build this XX Industrial New City piecemeal, ten or even twenty years of effort is essential. Therefore, a clear blueprint must be drawn from the outset, inspiring hope, a fresh perspective, and aspirations to those who see it, so that they can work towards this goal. Currently, only a few foreign institutions possess the capacity to conduct relevant industry research and overall planning.

Domestically, she could do other innovative designs, and she had also reserved eight million yuan for this innovation, along with the costs of professional construction drawings. She had just proposed a courtyard villa with a 1.0 floor area ratio, but she couldn't draw it herself; she only remembered some general logic.

The villa's most important feature, the courtyard, was preserved, with privacy and entrances separated. Each unit had a connecting wall, preempting future policies prohibiting the development of single-family villas. These three or five units are connected, but unlike townhouses where every household has the same front and back doors, each unit has a distinct courtyard entrance. From a distance, it appears to be a large villa of over a thousand square meters, but in reality, several families live together, achieving a floor area ratio of 1.0.

Such residential specialty products can only be developed by domestic design institutes under various strict regulatory conditions. Domestic large design institutes have such innovative capabilities.

She defined the model group in the starting area as a characteristic town, and insisted on imitating the exotic style of some foreign towns. It was not that she liked it herself or was worshipping foreign things.

Such was the current of thought in that era. If it were Lin Ruoyan herself, she would have preferred a courtyard house or a Suzhou garden, a waterside village in the south of the Yangtze River. However, waterscapes in the north were too expensive. At this time and place, the newly wealthy who had come to Beijing to make their living yearned for a pastoral life. Their conceptions were more receptive to North American, French, Mediterranean, and Tuscan styles. They rarely traveled to these foreign destinations, and were more easily captivated by the picturesque towns they saw in magazines.

Perhaps in another ten years, Chinese people will begin to realize the beauty of traditional Chinese architecture and optimize more new Chinese-style towns with such artistic conception. But now, she still has to bow to secular aesthetics and cannot force what she likes on her customers.

Among various styles, the Mediterranean style is of course relatively inexpensive and beautiful in appearance. In foreign countries, the original towns use large areas of paint, sharp color contrast, red tile roofs and some stone collages to build houses, forming a fairy-tale style that is very different from the peasant courtyards in China.

In addition, most planning patterns in the northern region are horizontal and vertical checkerboard-shaped, while small towns abroad are radially developed around a certain building or a certain square, which is more free and romantic. This completely different pattern, in turn, affects the living experience, which can satisfy customers' fantasies about second homes, enhance the sense of novelty, and is an experience that cannot be found in living in the city.

To achieve this, a lot of money needs to be invested in planning and design, which is money that others present are definitely not willing to pay, or they don’t think the design is worth that much money.

Lin Ruoyan rushed to pay for it herself in order to control the overall style and quality of the starting area. Otherwise, if she built a house with the aesthetic standards of her current "hot spring castle," even if the interior was decorated with genuine materials and sold as finely finished, it would not attract the customer base she wanted.

Next, there's the cost of buying land and building a model group. The 100,000 yuan per mu refers to industrial land. Lin Ruoyan wants to use the residential land within, so the price will be higher. Currently, the price is around 150,000 yuan per mu, which is about the same as buying more. She plans to acquire 1,000 mu of land in the future, which will cost 150 million yuan. The land will need to be developed piecemeal, and this cost will also need to be paid gradually. She will buy 100 mu of land in October, which will only cost 15 million yuan.

This one hundred acres of land is too large to be a model group for a regular project. It is equivalent to the size of her luxury housing project in the cy district. However, considering the current large scale of xx New City, this order of magnitude is very small, only equivalent to the residential model group in the starting area.

If the construction is carried out according to a floor area ratio of 1.0, 66,600 square meters of residential buildings can be built, and 600 villa-like units of about 100 square meters can be produced. All of them will be sold as unfinished units, and each unit will be sold for only one million yuan, which means the expected sales volume is 600 million yuan.

Because these villas are low-rise residences, their construction costs are far lower than those of multi-story buildings. Based on her experience, she estimates that a house of over 60,000 square meters can be built in rough condition for 60 to 70 million yuan. Adding the costs of landscaping, municipal facilities, land purchase, taxes, and design, all spread across the 100 acres, the overall cost can be kept within 200 million yuan.

For the first phase of the model group, the 400 million yuan between the expected sales of 600 million yuan and the total cost of 200 million yuan is the net profit.

These four hundred million yuan would keep her alive for four months, and this was only the initial investment and output of the first hundred acres. As the project matured, the value of each thousand acres would increase, and the products could be upgraded to higher-end products, or the unit price could be increased, gradually increasing the total sales price. She estimated that she could expect a net income of around four billion yuan from this project.

This refers to net income, not the 5 billion yuan sales projections for luxury housing projects. Luxury housing sales don't even deduct the substantial initial investment costs, so the net profit is only 4 billion yuan.

In short, if the luxury housing project can generate normal returns, she will be able to successfully participate in the project in the starting area of ​​xx New City. It seems that she will not have to worry about the issue of survival in the next few years.

Everyone present looked at each other, and finally Wang Min exchanged glances with everyone and said, "Boss Lin is indeed a big shot in Beijing. He stands high and sees far, and has more experience than us old guys. You can do whatever you say. How much land do you want?"

In fact, other things are just small money, the big deal is about the division of land. The starting area is several hundred acres. If Lin Ruoyan takes too much, basically covering all the residential land, then others can only get other things.

For example, Lao Liu is definitely still focused on the municipal projects in the entire area, while Ling Laoliu is likely aiming to secure all the housing projects in the starting area. As for Wang Min, he's currently focused on the hotel business, but in the future, he might see the high profits and quick profits from the real estate business and try to copy it.

If she wants to do something, she must leave space for these people and not usurp their power. Otherwise, she, a latecomer, will not be able to defeat the local tyrants.

So, Lin Ruoyan said, "How about this? I'll first advance the industrial planning and come up with renderings of a model cluster. Then we can report to our superiors and hear their opinions on whether this is possible. After they approve it, we can allow the construction of innovative villa-like structures that are beautiful and high-end, enhancing the overall image of the new city. I thought about it and decided to at least build a hundred acres of land as a prototype."

She didn't ask for a thousand acres right away because she hadn't met with her superiors yet, and there might be other conflicts of interest. But if she could produce those beautiful blueprints and ambitious plans for industrial development, she'd need to be granted a hundred acres first. That was her bottom line. With the expected profit of at least a few hundred million, she was still willing to take a gamble.