Chapter 196: Another City of Luxury Houses
To promote her real estate project in the south, Fang Yue was looking for a celebrity endorsement. She didn't need to be famous, just relatively inexpensive. Someone like Wei Xu would be even better, but a lesser-known, well-regarded female celebrity with no negative publicity and a solid acting pedigree would be fine.
At that time, television advertising was still very influential. Fang Yue's target audience was those in their twenties and thirties, many of whom were fans of celebrities. Even those who weren't fans would watch variety shows or TV dramas in their free time. Mature actors selling health supplements and recommending learning machines, while young celebrities endorsing real estate projects, were all part of the trendy trend.
Fang Yue came to see Lao Dai because Lin Ruoyan was Lao Dai's boss, and she wanted to use her connections to negotiate a discount. Unexpectedly, Lin Ruoyan was also there, so she asked the subordinate in charge of publicity to discuss the details of the business with Lao Dai, while she and Lin Ruoyan discussed other things in the private meeting room.
If she wants a discount on advertising fees, she naturally has to show her sincerity.
Seeing Fang Yue's expression, Lin Ruoyan knew that there might be new project news. She greeted her with a smile and got to the point in a few words.
It turned out that Fang Yue's friend in Shanghai had recommended a project, right next to the Xijiao Hotel near Hongqiao Airport. It was a bit far from the core area of Shanghai, but Hongqiao Airport was an international airport, and the Xijiao Hotel was a well-known venue for receiving foreign guests year-round.
The land is just across the road from the Xijiao Hotel, covers an area of less than 50,000 square meters, and has a building area of just over 30,000 square meters.
Fang Yue said the location is excellent, but the property is small and has a 15-meter height limit. While the required floor area ratio isn't high, the total building size is too small.
There was another problem: this was second-hand land, originally owned in 1997 but left undeveloped until some problems arose. Later, the company planned to sell the land and invest the funds in better locations in Shanghai, such as downtown, to develop larger, high-end residential properties.
The person in charge of that real estate company had a good personal relationship with Fang Yue and had connections in building high-end high-rise residential buildings. He asked Fang Yue to look at the land in the city for building high-end high-rise residential buildings and mentioned that he wanted to sell this relatively small piece of land.
Fang Yue didn't refuse at the time, and she was embarrassed to say that the land was small, expensive, and so far from the city. After returning to Beijing, she thought that this location was much better than the luxury residential plot in the CY District outside the Fourth Ring Road of Beijing that Lin Ruoyan had obtained. At least it was close to the airport, and it had special "supporting facilities" like the Xijiao Hotel. Maybe it could be used as a luxury residence?
After all, the floor price is over 10,000 yuan, which means the land purchase would cost 300 million yuan. The average price of a house in Shanghai is only 30,000 to 50,000 yuan, and villas are more expensive, just over 10,000 yuan. With the floor price starting at 10,000 yuan, the only way to avoid a loss is to build a luxury home.
In Fang Yue's opinion, the only luxury properties in China were the one Lin Ruoyan had worked on, and other large villas. However, a top-tier villa in Shanghai would cost around 20 to 30 million yuan, with a price tag of 30 to 40,000 yuan per square meter. It couldn't be more expensive. And this piece of land, with planes constantly flying overhead, was still far from being a beautiful, private location.
After hearing what Fang Yue said, Lin Ruoyan was a little moved.
The Xijiao Hotel is mentioned in the original book. After Wei Xu became an award-winning actor, he filmed a movie nearby, passing by a luxury residential complex. Each villa there is located on an island. I heard that when the villas were first put on the market in 2004, they sold for over 100 million yuan each, and they were all sold out within two years. It seems the complex only has 18 villas.
Could it be that what Wei Xu saw was what the land would look like after it was completed?
More than 30,000 square meters, minus the 10,000 to 20,000 square meters of clubhouse and property supporting facilities, the 18 villas each have an area of 1,000 to 2,000 square meters. Just looking at the area and the layout of a single villa on a single island, it deserves the title of a billion-yuan luxury house.
Well, let’s get in touch and find out more.
Lin Ruoyan immediately made an appointment with Fang Yue to fly to Shanghai to have a face-to-face chat with the original owner.
The original landowner urgently needs money, and the buyer who doesn't want to buy the land needs to raise the payment slowly. It's best to see at least half of the payment in cash after signing the agreement, and then complete the other formalities gradually. After all, he also has his eye on the land that is about to be auctioned, and if he doesn't have sufficient funds, he may not be able to get the land he wants.
Lin Ruoyan certainly had money in her account, but taking 300 million right away and spending over 200 million a month was like shortening her life. She negotiated several times and reduced the first payment to 80 million, which would be paid monthly. The remaining payment would be spread over several months to the original landlord, with the 300 million spread over four or five months, making the payment less stressful.
It was already July when the land was acquired, and summer vacation was approaching. Lin Ruoyan wanted to take her children out to play, so she had to set the tone of the luxury housing project in advance so that she could be a hands-off boss.
So she took Zhao Xingxing and flew to Hangzhou, where she explained what she considered to be the key issues to Lu Gan and the team there.
Lin Ruoyan sat down in the conference room of her Hangzhou office, called her key people together, and told them her positioning for the luxury housing project in Shanghai.
"We want to make it the best luxury home in the country, with an average starting price of 60,000 yuan when it goes on sale next year." Lin Ruoyan said bluntly.
Lu Gan, who had already sold luxury homes averaging 50,000 yuan, and the salespeople from Beijing, didn't blink, meticulously recording Mr. Lin's request. Even though most luxury homes in Shanghai were still priced at 30,000 yuan per square meter at that time, if Mr. Lin said 60,000 yuan, he could definitely sell it for 60,000 yuan.
"Just build them all into villas. After all, the height limit is 15 meters." Lin Ruoyan said it exactly as she described the project in the original book.
This is understandable. The land area is less than 50,000 square meters, and the above-ground building area is just over 30,000 square meters. After removing that part to build a club, the remaining 30,000 square meters of sales area can be converted into villas, and the floor area ratio is also supported.
Then Lin Ruoyan said her most explosive request: "Let's start with 100 million per set."
What? Lu Gan thought he was hallucinating, and the pen in his hand almost broke. He bravely asked in a trembling voice, "Mr. Lin, how much is the price of a single set?"
Lin Ruoyan said calmly: "At least 100 million. We spent 300 million to buy the land."
A house sold for 20 million yuan would already be sold to a top-tier client. While Shanghai is a nationally and even globally renowned metropolis, a villa priced at 100 million yuan is outrageous. Existing high-end villas in the area only sell for 30 to 40 million yuan each, and sales are slow.
Zhao Xingxing lowered his head in silence, his mind racing. With an average price of over 60,000 yuan, a villa costing over 100 million yuan would have to be around 2,000 square meters. That's four or five times larger than a typical large villa. This, this is massive, right? That's the equivalent of a castle or manor overseas.
Lin Ruoyan continued, "The sales area should be controlled at around 30,000 square meters. The clubhouse, combined with the underground floor, will definitely require a usable area of 10,000 square meters. This will minimize the use of the above-ground saleable area. Also, Director Zhao, can you calculate how many houses this project can produce?"
Zhao Xingxing had already been thinking about this and immediately replied, "Boss Lin, we can probably produce about 20 sets."
Lin Ruoyan nodded. "So, 100 million per unit is still a bit cheap. Let's go with 150 million per unit. Based on an estimate of 18 to 20 units, the sales volume is expected to be 3 billion. Mr. Lu, do you dare to do it? The total sales volume is 2 billion less than our first luxury housing project. It's not too difficult, right? Based on the cost of building high-rise luxury housing, add a coefficient, and deduct the construction cost of about 700 million. We can make more than 2 billion from this project. Do you have confidence?"
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