I'm in the county town, and you say I'm a big shot?

Chapter 303 Housing prices will continue to rise!! And they will rise sharply!

A board meeting was held at the company that afternoon.

Currently, Huacheng Company's board of directors consists of only three members: Fang Qingye, Song Qingdong, and Luo Yan.

Fang Qingye got straight to the point: "Jushang Architectural Design Company has submitted a new project budget, including the previous planning scheme and this budget. Let's share our thoughts."

Song Qingdong spoke first: "The budget for this project is indeed fully in line with the requirements, but as you can see, the construction cost has soared by 30%, reaching 1.2 million!"

"We invested 1.47 million yuan in the renovation of Nanxin Lake, which is actually the cost of 300 mu of land. The first phase of development covers 150 mu, and the cost is calculated to be half of that, which is 0.735 million yuan."

"There are also infrastructure costs, sales expenses, management expenses, taxes, etc. According to the company's finance department, it will take about 1 million yuan more, which means the total cost of the first phase of development is 2.94 million yuan!"

"But what about our sales revenue? The entire first phase has a construction area of ​​about 5 square meters. Based on the sales department's estimated average price of 6000 yuan per square meter, it would only be about 3 million yuan."

"In other words, our first phase project only netted 600 million yuan. If we take into account bank interest expenses, we will hardly make a penny from this project and may even lose money!"

At this point, Song Qingdong looked at Fang Qingye, smiled, and said, "Chairman Fang, do you think what I said is right?"

Luo Yan didn't speak and just looked at Fang Qingye.

Fang Qingye understood that Song Qingdong hadn't expressed his opinion during the last negotiation. On one hand, he wasn't really in favor of using the three sets of drawings method.

But he also values ​​profit! Why do something that isn't profitable?!

"Alright, let me give you my opinion." Fang Qingye spoke calmly, taking a sip of tea to moisten her throat before speaking:

"I went to Huijing a couple of days ago and met a friend of mine who also designs real estate projects. He gave me some suggestions and modifications to Jushang Company's proposal. You can take a look."

As she spoke, Fang Qingye took out Nan Jing's revised proposal, in triplicate.

Song Qingdong and Luo Yan each took a copy and looked at it carefully, and sure enough, there were many revisions:
The underground parking garage's floor height is controlled at 3.3 meters. Since the average height of vehicles in the county is less than 1.8 meters, 3.3 meters is sufficient, and this will save costs.

The railing base and structural beams are cast as a single unit, eliminating the need for secondary construction costs.

Instead of using the vertical greening methods that are difficult to maintain in county towns, we chose local trees that are easy to grow, which also saves costs.

There are more than thirty places of varying sizes.

Luo Yan was secretly surprised. The other party was indeed an expert. This modification could reduce construction costs without affecting the overall quality of the building.

"Chairman Fang, this plan is excellent!" Luo Yan was the first to express her opinion.

Song Qingdong wasn't in a hurry. He slowly read through the document before saying, "According to the revised budget cost sheet, saving 5% to 8% of the cost would amount to 600 to 900 million."

"Let's go with 900 million. An investment of 2.94 million only yields a net profit of 900 million, a profit margin of 3%, isn't that too low?"

Fang Qingye smiled and said, "Chairman Song, you just said that the sales department estimates the average price of houses to be 6000 yuan per square meter. Who made that estimate? I don't know about it."

Upon hearing this, Luo Yan quickly explained, "Chairman Fang, I showed you the prices of different types of houses provided by the sales department some time ago, including high-rise buildings, mid-rise buildings, and villas. The final calculated average price is about 6000 yuan per square meter."

"Really? I didn't notice."

Fang Qingye replied casually, which immediately infuriated Luo Yan.

You're cheating!

How could you not notice such important data?!
You clearly signed the document circulation form!
Fang Qingye ignored her and continued, "6000 yuan per square meter? Is that what you call a high-end residential area?! I think it should be raised to at least 7500 yuan per square meter!"

7500 yuan per square meter!

Everyone present was shocked.

After a while, Luo Yan couldn't help but remind him: "Chairman Fang, the most expensive house in Nanxin County is only 6000 yuan per square meter. If we set the average price at 6000 yuan per square meter, it will be much higher than the average price of commercial housing in the county."

"Mr. Luo, this is a high-end residential area! We hired top designers from Shanghai to design it, so why not sell more?!" Fang Qingye retorted without any politeness.

“The documents provided by the sales department say that the average price of townhouses is only 10000 yuan per square meter. Can a house priced at 10000 yuan be called a villa?! I recently bought a villa in Pudong, Shanghai, with an average price of more than 7 yuan per square meter.”

Upon hearing Fang Qingye's last words, Song Qingdong, who was drinking tea, almost spat out the tea into the cup.

Is this some kind of Versailles mentality?! Besides, how can the houses in Nanxin compare to those in Shanghai?!

"My idea is that the price of villas should be on par with those in Jinghai city, at least 14000 yuan, and the average price of high-rise apartments should be 6500 to 7000 yuan," Fang Qingye concluded.

The other two exchanged bewildered glances. It sounded good, but what if they couldn't sell them? What if they became unsaleable?!

Seeing the two of them like this, Fang Qingye laughed: "I'm telling you, have some confidence, okay? Have confidence in the houses we're building! More importantly, have confidence in the property prices! Property prices will continue to rise!! And they'll rise sharply!"

Luo Yan felt a bitter smile in her heart upon hearing this.

The two bosses were pleased. But Alexander, the general manager and head of sales, would probably be furious if he heard that!
But judging from today's situation, it seems the decision is basically finalized.

As expected, Song Qingdong stopped talking about prices and instead launched into a heated discussion about the cost-reduction measures proposed by Fang Qingye.

These measures will ultimately need to be discussed with the designers at Jushang Architectural Design Company to achieve the best possible results.

But Luo Yan knew that the so-called three sets of blueprints method within the Nanxin County development zone was about to be completely abandoned.

This news quickly spread quietly in the Nanxin real estate industry, indicating that Huacheng Development was going to abandon the three sets of blueprints method that everyone used in the past and adopt a more practical approach.

Some people applauded it, but others were secretly cursing behind its back.

Isn't this cutting off everyone's source of income?

During lunch, Shi Jingsheng and his son talked about this matter while eating.

Although Shi Jingsheng's business is not mainly focused on real estate development, but rather on roads, water conservancy projects, and supporting facilities such as residential communities and roadside greening, he was still very interested in this news.

"This is good news for us. It was clearly Qian Weimin and Song Qingdong who deliberately altered and reduced the size of the green facilities on the development plan, but in the end, someone blamed me, the person in charge of the landscaping, for cutting corners."

Shi Jingsheng complained.

Shi Yong wasn't too concerned about that, but asked curiously, "Dad, isn't Fang Qingye offending a lot of people by doing this? Everyone else is cutting corners like this, but you insist on doing it properly. Isn't he afraid?"

"Afraid? If he were afraid, would he have kicked Qian Weimin out? Don't underestimate Fang Qingye just because he's young; he's worldly-wise. Look at these county leaders—Secretary Hu appreciates him a lot, and County Chief Miao is practically his sworn brother. Let me tell you, Fang Qingye dares to do this because he has the strong support of the county leaders. He's fearless!"

After finishing his sentence, Shi Jingsheng looked at his son and couldn't help but add, "Look at you all! You're about his age, but none of you have his courage and ability!"

Seeing that his father was about to scold him again, Shi Yong quickly said, "Dad, stop talking and eat quickly, the food is getting cold. I'll add some wood ear fungus for you, it's good for you."

After saying that, she very attentively picked up a piece of wood ear fungus and put it in her father's bowl.

"You little rascal." Shi Jingsheng shook his head.

My son isn't cut out for business, but he's quite good at being a dutiful son.

After several rounds of discussions with Ju Company, Huacheng Company finalized the plan. The next step is to submit it to the Housing Management Bureau for filing and begin preparations for the pre-sales process.

To improve the effectiveness of the publicity, the company hired a professional company in Shanghai to design the copy, but Fang Qingye did not worry about these details.

He was sitting in the nursery's office, facing his computer, with an email from Shanghai open.

It was sent by Zhang Xuhao, CEO of Ele.me.

He first introduced the current development status of Ele.me, which is once again facing funding problems and wants to conduct a new round of financing.

Fang Qingye stared at Zhang Xuhao's email in deep thought for a long time.

Ele.me's second round of financing is inevitable. Although Ele.me has expanded rapidly, its monthly revenue exceeded 20 million yuan in October this year.

However, it has not achieved break-even, meaning it has been consistently operating at a loss! The 300 million yuan invested by Tuofang Technology last year has been completely spent.

He wasn't thinking about financing; he was thinking about something else. After a moment, he picked up his phone and dialed a number.

He was calling Wang Chenyang.

(End of this chapter)