Real Estate Websites in China

Real Estate Websites in China

The real estate market in China has become mature in a very short period of time. The internet has developed from very basic websites to sophisticated platforms in less than 10 years and the country might very well be ahead of other economies regarding that matter. 

There is still several categories of websites adversiting real estate in China. 

Chinese agencies websites

The first categories of websites where you can find real estate classifieds are the real estate websites of real estate agencies. These websites are definitely designed for Chinese customers and most of them do not even have english (or an other foreign language) versions. These are the oldest type of real estate websites in China and reflect the property portofolio of the companies, you can have a look on websites such as «  Wo Ai Wo Jia » or «  Century 21 China ». 

 

 

Real Estate classifieds on Expat websites

A disctinct category of websites that include real estate classifieds are the websites designed for foreigners such as the Beijinger, the Shanghaiist or City Week End. 

These websites are very specific and deal with classified aimed at foreigners. They are used by foreigners and are favoured by Chinese Real Estate agencies and landlords because of their preference for foreign tenants who have the reputation of behaving better with the apartments. Still, this is a marginal category.

 

Relocation Agencies Real Estate Websites.

For example, have a look on the Scout Real Estate Beijing website. These agencies have a niche market : the expatriates in Chinese large cities. Their websites are interesting to compare with Chinese websites because of their very different design, that looks clearer to westerners when Chinese websites have information scattered all over the screen. These sites are interesting as well because they select the most presigious compounds in China large cities, faithfully reflecting the market structure in China with a high grade real estate market limited to a few residences in prestigious city landmarks. With Chinese real estate market becoming more mature, this might evolve in the future but it is still a limited market.

Real Estate platforms, the Soufun success story

With Chinese real estate distribution network being more and more online, a new kind of website has emerged, the most inconic being Soufun. This is a very impressive platform with an open architecture, where agencies, landlords, developers and customers can register and interact, making it the most reliable source of real estate data in China. This is top notch website with a very modern interface, that proves how much the Chinese real estate websites have evolved in such a short period of time.

A new category : Chinese real estate websites for overseas properties

With Chinese real estate developemnt, Chinese investors want to diversify their portfolio or more simply set a foot outside China. This is a rising phenomenon illsutrated by the success of Juwai,  a website dedicated to properties overseas, with precise explanations about the areas where they are about to invest. This is a great success and responds to a clear need of Chinese customers.

Break-even

Break-even is the point where the profit and loss are exactly equal. This point reflects the moment when the investor can get returned after his investment. Break-even indicates also the point of balance between sales income and prime cost (use in distribution for example). At this point, theres’s neither profit nor loss, although opportunity costs have been paid. When a company fixes prices or decides its marginal profits, the break-even serves as a critical point of making profits. Therefore, it’s important to make use of the break-even point in management strategies. This point can be widely used in product marketing, investment or even a company’s entire business. In the option area , it is also helpful. For options, break-even indicates the exact market price that should be reached. Only at this price can buyers not be in a loss. Break-even analysis is a useful tool to study the relation among the fixed cost, changing cost and profits. The analysis shows in a visible and direct way when to get the costs returned with a chart or a formula. Through the analysis, we come to know, within a given price, what the size of production should be to cover the total costs. Similarly, we get to know, within a given quantity of production, what the price should be to cover the total coats.Usually, we use a chart as seen below to get the results. From the break-even point, we begin to make profits.

　

To make a more accurate analysis, we often use some formulas to work out the final results. It’s BEP = TFC/(SUP - VCUP). Here, BEP = Break-even Point, TFC = Total Fixed Costs, VCUP = Variable Costs per Unit of Production, SUP = Selling Price Per Unit of Production.

Nowadays, more and more companies apply the analysis for the sake of a better profit and favorable financing strategies. For the most of time, when one wants to open up a start-up, he should draw up a financial planning with which he can make a clear understanding of his further financial situation. This point allows him to make or modify others’ decisions. For example, if a company finds that his predefined investment can’t cover the total cost before arriving at break-even point, it may probably seek for other investors, cooperators or cut down its fixed cost(equipments, factories, administrative expenses, etc).

Though break-even is widely used in financial evaluation and profit-loss forecast, it has also some restrictions. Firstly, each analysis conforms only to a single product. Secondly, it’s difficult to classify the fixed cost and the changing cost. Sometimes, the functional relation between the prime cost and income has changed, but the operator doesn’t recognized it. So with the previous analysis, he or she may get wrong results, which could lead to a loss.

Sources: China strategy