2014.06.19

Last weekend, the forum themed "Dialogue with Ren Zhiqiang: How Small and Medium-sized Enterprises Survive the Economic Downturn" co-sponsored by Times Property and Guangzhou Textiles Industry & Trade Holdings Ltd. was held on Times ITI Plaza in Dongpu Town, Tianhe District, Guangzhou. Mr. Wang Yaping, the secretary of the party working committee of Chebei Sub-district, Tianhe District, Mr. Tan Yaxian, the CEO of Guangzhou Textiles Industry & Trade Holdings Ltd., Mr. Huang Yu, the deputy general manager of Guangzhou Textiles Industry & Trade Holdings Ltd. and Times TIT Plaza, Ms. Zhong Yushan, the deputy general manager of Times Property and Times TIT Plaza, and Mr. Yu Wenhui, the founder of Thunderstorm Investment and the CEO of VCHello.com were invited to the forum.

Times TIT Plaza: the first cooperation between Times Property and Guangzhou Textiles Industry & Trade Holdings Ltd.

A representative of the sponsor gave a speech and a brief introduction to Times TIT Plaza first. Times TIT Square was the first commercial project jointly developed by Times Property and Guangzhou Textiles Industry & Trade Holdings Ltd. It is located at the heart of Dongpu Town, Tianhe District and covers a total area of nearly 70,000 square meters, offering business offices, catering services, entertainments and comprehensive supporting facilities.

The project is designed to be the best in Dongpu Town in terms of office building planning. Even the restrooms should be without a rival. To honor the companies settled in the building, Times TIT Plaza paid special attention to details. Each storey is 5 meters high and has a comfortable working environment. A property management company with over 10 years of experience was hired to provide professional service to the inhabitants. What attracts the most attention is that the sponsor has turned the 30,000 m² office buildings on Times TIT Plaza into the breeding ground for venture capital investment called Dreamer's Park, to support innovative enterprises by investing on potential innovative projects and promoting development.

After that, a ceremony was held where Ms. Zhong Yushan, the deputy general manager of Times Property and Times TIT Plaza, and Mr. Yu Wenhui, the founder of Thunderstorm Investment and VCHello.com signed the contract of Dreamer's Park.

Those who hesitate over when to buy a house always miss the chance

Mr. Ren Zhiqiang, the president of Huayuan Property, came on the stage and gave a speech about how small and medium-sized enterprises could survive the economic downturn. By taking a few examples and explaining the economic downturn from different perspectives, he analyzed the main reasons for economic downturn and pointed out what small and medium-sized enterprises could do to survive. Nevertheless, most people were concerned about issues concerning the real estate industry.

Mr. Ren Zhiqiang was asked when is the best time to purchase houses as prices in Guangzhou suburbs began to plunge recently. He said there are two kinds of buyers. The first buyers are those who are wealthy enough to buy houses and the other group is those who need to buy one. "Those with rigid need shouldn't have tried to pick a time," he remarked, "only investors will care about the timing and long-term investors won't mind the difference between today's price and tomorrow's. Those that keep asking questions about when to buy always miss the best chance."

"I can't predict the price but I am sure that there will be a price rebound," Mr. Ren Zhiqiang said, "the property price in America dropped in 2008 but now it is much higher. Even if the price drops now, what would it be after 10 years?"

According to Mr. Ren Zhiqiang, the prospect of real estate in different cities cannot simply be predicted based on its level. Whether a city is a first-tier, second-tier and third-tier one is not the decisive factor, but which city will have the largest population inflow does matters. "When 50% of the total population is turned into urban residents, the rest 20% population who remains to be urbanized will gather in more attractive cities. In the past, all cities had population increase but in the future, there will be population growth rate in different cities will vary. What matters to real estate development in cities is population inflow and outflow."