Super Rich from Winning a Lottery

Chapter 411 270: Exorbitant Profits (Part 2)

The situation in 2008 was actually quite good because the land for their real estate development was acquired in 2006 and 2005 when land prices were still not that high. So, even when house prices in 2008 were slashed by half or even by two-thirds compared to 2007, many companies still grit their teeth and made it through.

After all, the duration was not long. In 2009, housing prices started to rise continuously, and by the end of the year, not only did they recover to the 2007 prices, but they even exceeded the 2007 housing prices.

However, from early 2009, after the house prices began to adjust and rise, housing prices reached a peak by 2021, and then started to decline. Although the decline was not as drastic as the one in 2008, the downturn lasted longer, and at that time, house prices had increased by at least 10 to 20 times compared to 2008.

So, many large real estate development enterprises began to struggle. They had spread their resources too thinly, and when the capital chain broke, it eventually led to major issues.

First, there was a major crash at Hengda, with total liabilities reaching 2.4 trillion yuan. Xu Pidai completely didn't want to manage it anymore and attempted to flee, surprisingly running off to the United States to apply for bankruptcy, only to end up arrested and imprisoned.

Immediately following, Guoqiang Real Estate also faced a meltdown, unable to repay its foreign debts, and simply chose to give up.

Additionally, several other large real estate development companies also went under. They shared a common trait: blind development that highly leveraged capital. If house prices continued to rise, they wouldn't have had any issues.

However, house prices unfortunately declined, and there was no hope of recovery in the long term; ultimately, there was nothing left but to await demise.

Since Yi Anguo already knew in advance, naturally he wouldn't follow these old paths. He would definitely cease land purchasing at the appropriate time, develop the land he held in advance, sell the real estate he owned in advance, and clear out everything directly, rather than having a large amount of real estate left unsold in his hands until selling becomes impossible.

But for now, it's still early. Undertaking a large amount of land acquisition to reserve, and undertaking a large amount of real estate development and sales is still feasible, given the substantial market space.

At this time, domestic real estate has formally entered a stage of rapid development, with cities nationwide engaged in urban upgrading and reform. High-rise buildings are springing up one after another across various cities, ushering the real estate industry into an unprecedented phase of prosperous development.

Land is being sold broadly across regions, constructing residential complexes everywhere. Regions are acquiring substantial funds through land sales to enhance urban infrastructure, constructing cities that resemble gardens — beautiful, tidy, and clean. Many third- and fourth-tier cities, even fifth- and sixth-tier cities in inland areas, seem as if they've undergone a radical transformation, with newly developed stunning complexes evident everywhere.

Even many people from rural areas are flocking to the county to purchase homes, especially school district homes, as parents cannot let their children fall behind at the starting line and must buy homes in the city for them.

One of the conditions for many young rural couples to get married inland is to have a house in the county.

Yi Anguo has been flying around various locations during this period to inspect local Silence Square projects that have already been completed.

The Silence Square projects everywhere are almost all similar in design, differing only in size, much like many current cities, which mostly consist of clusters of towering buildings, alongside more towering buildings.

It's as if without these clusters of high-rise buildings, there's no way to demonstrate a city's prosperity.

The Silence Squares everywhere continue to sell well, with apartments and shops that can be sold quickly selling out, leaving only the properties intended for self-use or reserved for lease by property management companies.

As for office buildings, they are mostly not sold externally, but are retained solely for leasing.

This is the advantage of commercial real estate development; as long as you have financial strength, whether selling or retaining ownership is entirely dependent on the company's own decision.

Even for apartment buildings, they can choose not to sell but only lease, though this will slow down capital recovery; however, leasing can maintain value appreciation. When house prices rise to a certain point, selling will be far more profitable.

However, Yi Anguo still feels it's best to sell and earn what he can, without being too greedy, otherwise the finances will be very strained, making it difficult to smoothly continue developing the next batch of commercial real estate development projects.

The initial thought was to sell if they sell well and hold for lease if they don't sell well, but ultimately, because they were selling too well, all the apartments were sold off.

Nevertheless, even after selling them, property management fees can be collected monthly, continuing to bring in revenue for the company.

After selling all the surplus shops that should be sold, as well as apartment buildings, the development costs were largely recouped. The remaining office buildings, hotels, and shopping malls, supermarkets, and shops are equivalent to pure profit.

If all these office buildings, hotels, shopping malls, supermarkets, and shops were sold off completely, the value would be considerable — this commercial real estate development project's profits are truly too impressive, almost like windfall profits.

Yi Haiyang soon sprang into action as well by dispatching a number of people to the inland areas for investment inspections, directly acquiring a batch of local enterprises on the verge of bankruptcy, which enables immediate rectification and production. Moreover, there are skilled production workers, greatly enhancing time efficiency and production speed.