Chapter 157 What kind of judgment

Several major real estate companies have expressed interest in the 200-plus mu (approximately 1,000 acres) of land vacated by factories in the old city. Authorities are concerned that developers will hoard the land and not develop it, so they require bidders to have substantial registered capital and to register a local project company.

On the day of the land auction, a detailed plan for future project construction and a design proposal with renderings must be submitted. Those who win the land must sign a deadline with the local authorities to start selling the land within two years, or face a fine. If the land is not developed within two years, the land will be reclaimed without refund, and there are a lot of binding conditions.

Upon hearing such stringent conditions, developers seeking quick profits or land sales retreated. Consequently, the factory's partners retreated, leaving them in a quandary. Land acquisition in the new district seemed easier, and no one wanted to invest so much time and energy in a major project just for over 200 acres in the old city.

"Qin Shuang, if it were you, would you invest in the new district or work on the project in the old factory area?" Lin Ruoyan deliberately tested Qin Shuang's thinking.

Qin Shuang is the top employee at the real estate company, and Lin Ruoyan has been grooming her as her deputy, perhaps even her successor. To become stronger, more visionary, and to see the essence of things through phenomena, Qin Shuang needs growth and experience. Lin Ruoyan privately explains her thinking process to Qin Shuang on many important decisions. I wonder what Qin Shuang's judgment will be on this matter?

Qin Shuang could sense Mr. Lin's trust and cultivation. During this period, she rapidly absorbed all kinds of knowledge about real estate, communicated with the professionals in the company, and worked hard to improve herself. She knew that this was a test given to her by Mr. Lin.

She organized her words and replied, "Land in the new district is cheap. Common sense suggests that buying more land in the same area for the same money is more cost-effective. This city is not large. The new district and the old city combined are not even as big as one of Beijing's CY districts. If land prices can rise, buying more land will yield higher profits."

At first glance, the project land in the old city is small, and there is the burden of demolition and relocation, coordination of various relationships, and the purchase of land that is tied to so many additional clauses that it is difficult to sell, which will involve too much energy.

But if I really had to choose between the two, I would choose the project in the old city."

"Tell me your reason. Are you building a luxury house?" Lin Ruoyan smiled. Sure enough, Qin Shuang would not be fooled by appearances, so she had to set another trap.

The inherent thinking is based on past successful experiences. At present, the company's luxury housing projects are going well. Does Qin Shuang choose the old city to build a luxury house there?

However, except for Beijing, the profit margins for building luxury houses in non-provincial capital cities outside the eastern coastal areas are far less than those in Beijing and several other municipalities.

Qin Shuang shook his head: "We won't build luxury houses, we will carry out urban renewal in this area."

The book describes the concept of urban renewal, first proposed in Europe in the late 1950s, though it was certainly unheard of in China at the time. Now, with the real estate industry experiencing new development opportunities, the renewal of old urban areas could also draw on some of these foreign urban renewal concepts. It's surprising that Qin Shuang, a non-architectural professional, has already picked up on this "new" term.

"What's the point of the renovation? Over 200 acres, only twice the size of our current luxury housing project."

"If I were to plan it, I think it should include ordinary residences, office buildings, high-end apartments, and commercial areas," Qin Shuang said. "My research before and after arriving has revealed that the locals live on a smaller scale than in Beijing. They are more accustomed to working and living within a very small block. The average person's routine is to eat breakfast every morning, walk or bike to get off work (a commute of no more than 15 minutes), buy groceries nearby, and cook at home. Weekends are also spent nearby. However, they are not satisfied with small street shops; they yearn for the comprehensive, upscale shopping malls with movie theaters that are found in big cities."

What Qin Shuang was talking about was the urban complex, and he keenly discovered the key point that the living radius of people in this city is small.

In Beijing, many people commute one or two hours a day on public transportation, their salaries supporting them to grit their teeth and live in cheaper areas, even on the outskirts of the city, to commute to the CBD. However, in cities like Yicheng, with a population of over a million, people are more accustomed to the convenience of the old city, where everything can be reached within a 15-minute walk, or even a 10-minute bike or bus ride. Living in the old city and commuting to work in the new district would feel far, and similarly, living in the new district and having to commute to the old city every day might be a challenge.

In the old city, where factories and towns are integrated, there are many large factories with everything within them: their own canteens, auditoriums, small shops, even schools and dormitories. The older generation spent their entire lives in the factories, never having to leave. This lifestyle has been with them for nearly a lifetime, and it is not easy for them to change.

Therefore, such a city is very suitable for experimental projects of urban complexes.

Although Qin Shuang didn't mention the concept of "urban complex," her description and the reasons that inspired her to make this judgment were all on point. Lin Ruoyan said happily, "You're right, that's exactly what I was thinking. We could renovate the old factories in the old city into an urban complex, including the types of properties you mentioned, stripping away the industrial sector, but retaining the old, sturdy factory buildings and turning them into commercial spaces, museums, and exhibition spaces for industrial heritage."

I want this project to become a classic benchmark for local urban renewal, showing the government how to maximize profits after replacing old buildings, retain popularity, and boost the regional economy."

Qin Shuang was no longer satisfied with the superficial rhetoric. She asked, "Boss Lin, I understand retaining popularity. Just build residential buildings and do business. The old city is not lacking in commercial atmosphere. But what will boost the regional economy? Business will still be the same. At most, a large shopping mall will be added."

"Don't forget we still have office buildings and the industrial heritage gimmick. I said we should replace the old with the new and bring in new industries," Lin Ruoyan asked. "It's the 21st century now. What are the emerging industries?"

"Internet?" The company itself was a real estate company, but Qin Shuang knew that their Information Department was also a very profitable department. That department had a small office area and a very capable staff, but its output was very high. "Do you mean to introduce the Internet industry here? Or do you want to rely on the tourism industry?"

The industrial heritage feels a bit novel, but it doesn’t seem to attract much popularity.

"I need to take a closer look at the land and the condition of those old factories. If they're in good condition, we can transform them into a boutique hotel with an industrial heritage feel." At this point, Lin Ruoyan suddenly remembered the factory she bought in Country Y. She also had this opportunity, so she jumped in and asked, "Well, have all the paperwork in Country Y been completed? The old factories there will be closed sooner or later, so we could consider converting the industrial heritage into a boutique hotel in the future."