Chapter 129 What can she do
Of course, Lin Ruoyan wouldn't be so foolish as to build a real mansion in such a place. The land in Beijing and Hebei Province had completely different values. The appreciation potential of a house of the same quality in different locations could differ by more than ten times.
She sorted out the descriptions of the new city in her memory, combined with her experience in real estate in the real world, and soon a plan came to her mind.
In a few years, a spate of "xx" new towns will suddenly appear in the towns and villages of Hebei Province surrounding Beijing. Initially, these won't be considered true industrial new towns, but rather so-called large-scale developments primarily focused on residential projects. These projects target buyers who are fleeing Beijing.
The large area she is currently looking at is known as the No. 1 xx New City around Beijing. It was the first to propose the concept of a million-square-meter large-scale project and a villa for a million yuan, catering to a group of customers who need to improve their living conditions but cannot afford a truly luxurious villa. The housing prices have been rising steadily for many years and have remained popular.
Currently, land prices are as low as 100,000 yuan per mu, or just 150 yuan per square meter. Even with a 1.0 plot ratio, the floor price is still 150 yuan. Compared to the 30,000 to 50,000 yuan per square meter a decade or so later, this is practically free. Although the proportion of commercial and residential buildings on these industrial land plots is low, they are still very cheap.
If we can get a large piece of land for such an industrial new city now, even if we only develop a small piece to build hotels and residences in the short term, and the rest of the land is left idle, after a few years, as the industrial new city gradually improves, the market is accepted by people, and the area matures, the land price will naturally rise, and the profit from reselling the rest of the land will definitely be considerable.
This project, mentioned in the original book, seemed more promising than the university town, which hadn't even begun construction yet. If she could seize this opportunity, she'd be busy buying land and building villas starting at the end of the year.
In 2002, the time period of the book, commercial housing was actually not valuable outside of Beijing, especially in the unremarkable county towns in Hebei Province.
Everyone present knew the situation, but they were reluctant to give up such a good opportunity. They'd already secured a large tract of land at such a low price, hoarding it for future appreciation. To meet expectations from higher-ups, they hired someone to draw up a beautiful master plan, only building a hotel and then slowly developing the rest. Perhaps Beijing's Fifth, Sixth, and Seventh Ring Roads could be built one after another, and that would boost its popularity.
The old men wondered what Wang Min meant by calling Lin's Real Estate to Beijing. Was he trying to trick the girl into buying a piece of land in the wilderness and building a mansion there? While theoretically, people who lived in villas had cars and weren't worried about being far from the city center, this was Hebei Province. Beyond Beijing's borders, no matter how expensive, it couldn't compare to a house in Beijing.
Wang Min told them that projects in the nearby county town, with prices under a thousand yuan per square meter, were selling very slowly. After all, high-rise residential buildings with elevators on the county's main street were only a little over a thousand yuan per square meter and looked just as grand and imposing as those in the provincial capital. The county government, post office, bank, hospital, and department store were all nearby, providing a comprehensive range of amenities. Even a newly built, spacious three-bedroom apartment with an elevator for just over a hundred thousand yuan was rarely sought after.
After all, who in the county or township doesn't have a few acres of land? Building a large yard on your own homestead, and a small second-floor house for 10,000 or 20,000 yuan, wouldn't that be more comfortable than the pigeon coops of city dwellers?
It takes another half an hour to drive from the county seat to the area shown in the picture. It's pure rural territory, and people living in the county seat generally don't want to buy commercial housing here. If people in the county seat look down on it, how can anyone in Beijing really buy it?
Hebei Province is short of educational resources. Even though people have recently started to buy houses in provincial capitals and county towns so that their children can go to good schools, they will definitely go to well-known cities and counties with good schools and gather around such good schools.
I heard there's a famous high school in Hebei Province, but houses around here cost over 300,000 yuan, and there's a waiting list. It's not something anyone with money can afford. And the nearby county town has nothing, its several schools have mediocre academic performance, and unlike the beautiful mountains, grasslands, and natural beauty of northern Hebei Province, there are basically no tourist resources.
The only advantage of this area is that it borders the southernmost district of Beijing. It is said that it only takes one hour to drive to the Second Ring Road. It is closer than the remote suburbs of Beijing, and the roads are good, so it is very convenient.
Old Jiang, who had been silent the entire time and had just retired as the director of the Hebei Provincial Government Office, suddenly sighed, "Old Wang, I've been thinking these past few days. If you really want to invest in residential real estate, it's more cost-effective to turn it over quickly. How about I help you liaise with the leaders of the three counties east of the province? They're closer to Beijing's CBD and have a more residential atmosphere. I heard many well-known provincial developers have acquired land there. There's a river here, and the scenery is nice, but it's too far from Beijing's core area. All the way from Dax, it's surrounded by farmland. Overall, it's still a bit worse than the counties east of the CBD..."
This person's point is quite pertinent. No wonder he hadn't been participating in the discussion earlier. Since Lao Jiang was originally from the province, he could easily find connections in the counties surrounding Beijing. He didn't have to stick to this place.
Lin Ruoyan guessed that Lao Jiang might not be optimistic about this film. If he were to use his connections elsewhere, Wang Min would definitely need to rely on him more, so that he could gain more benefits in the future with his soft power.
Wang Min said, "Teacher Jiang has deep roots in the province, and wherever he points his finger is a path to wealth. But I'm from a nearby village. I'm a bit wealthy now, and with the support of higher-ups, I've been assigned to this area. I feel it's my duty to build my hometown and repay my parents. Besides, land prices in the three eastern counties have already risen. If I go there now, the profit might not be much, and I'll have to restructure my network. Teacher Jiang will have a hard time then."
Wang Min could hear what Old Jiang was saying, and he shared his own struggles. The province and county were both hoping he could build a new city in the surrounding area. He was undoubtedly tied to various interests, and it would be difficult for him to leave and move elsewhere. Unless he decided to give up work and retire early, he would have to start a project here, even if it meant building a new hotel.
If we really talk about hometown feelings, Lao Jiang's wife's family is also from this county. After Wang Min said this, Lao Jiang no longer mentioned going anywhere else.
Although Lao Liu and Lao Ling both had engineering backgrounds working on projects nearby, their overall perspective certainly wasn't as far-sighted as Lao Jiang, who had spent years working in provincial government. Their presence today was simply due to their connections and vested interests with Wang Min. They'd accept projects wherever they were needed, and if this particular piece of land proved difficult to acquire, they could find another location if they had the money.
From an engineering perspective, the land around here has excellent infrastructure. Thanks to the highway to Beijing, it's well-connected, and the land is flat, with few potholes. Honestly, it's quite convenient for transporting materials and working on the project, and it's definitely easier than the mountainous areas in the northern part of the province. I haven't been to the eastern part, and I'm not sure if there are any established regulations there. I'm a little hesitant about how much profit a construction team from outside can get.
Lin Ruoyan took in their thoughts and understood what she should say. The three eastern counties were closer to the CBD, but the land had already been divided there. Since they arrived later, the land was expensive, and the commercial housing they could develop could only be small units that met basic needs, so they weren't sure how much they would make.
Wang Min's attitude was right here. Since Lin Ruoyan was invited by Wang Min, she naturally spoke for him and said, "I think this place is also quite good. With a little repair of the river, there is a lot that can be done. The scenery may not be worse than the scenic spots with mountains and water."
Wang Min listened attentively, his brows relaxed, and he asked, "What piece of land has Mr. Lin taken a fancy to? It's so big, enough to build a new city. We brothers definitely can't swallow it all. If you want to invest in building a villa, of course you are welcome."
"I do have some ideas, but I'm afraid they might not be mature enough to express, and some of my seniors might laugh at me." Wang Min spoke frankly, and Lin Ruoyan also spoke modestly, intending to speak out something.
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