Wanke Connect: Flexible pricing of property management fees is an inevitable process of market self-regulation.

Since the first half of 2024, when cities such as Chongqing, Wuhan, Qingdao, and Yinchuan introduced the guiding prices for property management fees, the communities in these cities that took the lead in reducing property management fees have provided successful and practical reference cases for property owners across the country. This has also led to imitation in many regions and communities, triggering a wave of property management fee cuts nationwide. What is the trend of property management fee prices? How will it affect the revenue of property management enterprises? These have become the most concerned issues in the industry.

Regarding the current situation of the property management industry, at the semi - annual performance meeting of World Union Properties in 2025, He Shuhua, Executive Director and Chief Operating Officer of World Union Properties, said that in the past, during the rapid development period of the real estate industry, both the quantity and price of housing supply were on the rise, and property owners were not very sensitive to the price of property management fees. Now, with the market adjustment, property owners' attention to the service quality and price of property management has increased significantly. Some local governments have introduced relevant policies on property management fee prices accordingly. The property management industry is shifting from "scale expansion" to "quality competition". Against this background, Vanke Property's "flexible pricing" model is precisely an inevitable process of market self - adjustment at present. This pricing mechanism is essentially a restoration of the industry's normal state: the service standards will be more transparently linked to the prices. Property owners can choose basic services or upgraded services according to their needs, and the premium space for high - quality services will also be recognized by the market.

He Shuhua believes that flexible pricing does not advocate reducing property management fees. It respects the reasonable demands of property owners for service quality expectations and also guarantees the service quality and survival space of property management companies. Ultimately, it forms a dynamic balance among property owners, enterprises, and the government.

Data shows that in the projects where Vanke Property implemented flexible pricing in Chongqing this year, the collection rate of property management fees increased by 20%. In the first half of the year, the company obtained 114 residential property management projects in the existing market, with an annualized saturated income of RMB 668 million, a year - on - year increase of 31.5%.

According to the semi - annual report data of World Union Properties in the first half of 2025, World Union Properties achieved an operating income of RMB 18.14 billion, a year - on - year increase of 3.1%. The net profit increased by 5.4% year - on - year, and the core net profit after excluding non - recurring gains and losses increased by 10.8% year - on - year.

Wang Xubin, the financial director of World Union Properties, said that based on the 3.1% revenue growth and 10.8% core net profit growth in the semi - annual report, it is expected that the growth rates of these two indicators will further expand throughout 2025. The core paths to achieve the performance include the endogenous growth of the property management base brought about by flexible pricing, the release of the value of new businesses and new capabilities, investment - driven business growth, and cost reduction and efficiency improvement brought about by AI.

In terms of related - party debts, in the first half of this year, Vanke Group continued to choose to use assets to offset part of its debts to World Union Properties, which has raised concerns among market analysts about whether World Union Properties' business model will become increasingly "asset - heavy".

In response, Ye Fei, Deputy General Manager of World Union Properties and General Manager of the Asset Management Center, said that in order to efficiently promote the disposal of related - party assets, the company established the "Awakening of Insects" special working group in March 2025. This year, a lot of work has been done on each asset used for debt offset, including formulating strategies and implementation plans. According to the principle that the return should be greater than or equal to 0, the company plans to dispose of the salable assets over six years. In the first half of this year, it completed a task target of about RMB 140 million, and the annual plan is to dispose of about RMB 400 million worth of salable assets used for debt offset. For the holdable assets that can be operated, such as Rotterdam Square, the company will gradually increase the asset value of the project through the operation brand and then choose a better time to seek an exit.