Search room has reached a preliminary agreement with the major intermediary agencies, port costs 60 percent

Absrtact: A war lasted for 3 months, a real estate brokerage company and the real estate power between the game of interest, recently stalled. It is reported that the current search house has reached a preliminary agreement with the major intermediary agencies, port costs 60 percent. Although the incident was picked by a real estate dealer

A 3-month-old "war", a real estate brokerage company and real estate power between the game of interest, the recent temporary "flameout." It is reported that the current search house has reached a preliminary agreement with the major intermediary agencies, port costs 60 percent.

Although the incident was provoked by a real estate electric dealer, however, it is worth noting that, ultimately, whether it is to improve the port cost of the SouFun, tenants, or the major real estate brokerage companies, both who won the victory has yet to be explored, at the same time, the real estate electric business faced with the "dilemma" has been pushed to the podium.

The case of the broken supply

At the beginning of March, the real estate rental service platform for housing tenants due to price problems, first by the Shanghai 8 intermediary companies blocked, and then, the incident spread to many of the country's joint boycott of real estate brokerage SouFun.

May 29, Hangzhou 9 intermediary companies collectively under the SouFun of Hangzhou, the same day, 10 intermediary agencies in Chongqing to SouFun proposed to reduce fees and other requirements. After that, Beijing, Qingdao, Shenzhen and Henan province, and many other intermediary companies have formed alliances, announced the next product, Boycott SouFun.

It is understood that real estate dealers and traditional intermediary, the former to provide individuals with the latter release of the house, according to the number of clicks, that is, "sell port traffic." As early as 2008, SouFun had planned to raise the port charges, and was discouraged by three of traditional media protests. But in recent years the development of the Internet with China's real estate market, so that SouFun, home and other network platform to improve the voice of the traditional intermediary fees are increasing. A clear comparison is: The current Chinese real estate brokerage industry's average profit rate of 3%-5%, the listed real estate network enterprises margin often up to more than 30%.

But in the intensified competition today, the port costs continue to improve, at the same time, because the intermediary to the proportion of personal charges unchanged, so the Internet cost increase, the channel effect is declining.

Indeed, for real estate dealers such as house search, resisted no flow, the meaning of the site will become smaller.

In this respect, according to media reports, in a soufun internal mail, SouFun founder, Chairman Tianquan wrote, "The vast majority of brokerage companies, including my love my family and other members of the Union, are the search for the House of God, they have in the past several years, created today's search house, is their input to the search house brought high income and profits, We would like to thank them for their understanding and support when they are in trouble, and to strengthen our common development goals with our brokerage firms. ”

Finally, the search room to give three major measures: SouFun second-hand Housing group products in the existing discount on the basis of more than 60 percent, wireless full range of products, brokerage companies to promote financial support.

The market value of the search house has fallen by nearly billions

It is noteworthy that SouFun market value of 5.638 billion dollars from March 31 to June 13 of 3.493 billion U.S. dollars, evaporation of 2.2 billion U.S. dollars, nearly 13.6 billion yuan.

Beijing Time June 12 Evening News, Deutsche Bank issued an investment report said that the SouFun stock rating from "buy" to "hold", the target share price from 16 U.S. dollars to 11 U.S. dollars. According to the report, SouFun announced on the same day, from June onwards, its second-hand housing group products in the existing discount on the basis of another 60 percent. We think this is a bad factor for soufun. And because of the higher margins in the business, it is expected to affect SouFun's net profit. To this end, SouFun is likely to reduce its fiscal year 2014 forecast. We have lowered the revenue and net profit forecasts for the SouFun fiscal year 2014, 11% and 35%, respectively, from Wall Street expectations. At the same time, SouFun stock rating from "buy" to "hold", the target share price from 16 U.S. dollars to 11 U.S. dollars.

Deutsche Bank said that the SouFun 2014 fiscal year, second-hand source services revenue from the year-on-year increase is expected to reduce from 38% to 1%, the increase in the 2015 fiscal year is expected to rise from 22% to 25%.

On the second day, June 13, JPMorgan also issued an investment report that lowered its SouFun stock rating from "overweight" to "neutral", lowering its target share price from $17 to $10.

JPMorgan Chase is expected to reduce the impact of the compensation measures by 30% and 27% per cent of its soufun revenue forecasts for 2014 and 2015 respectively. It is expected that 2014 SouFun will increase the sales of housing services revenue 2%, next year will rebound to 25%. The SouFun 2014 and 2015 operating profit margins were lowered by 5% and 4% respectively, as the listing Service was a high-margin business. The expected earnings per share of SouFun 2014 and 2015 were 14% and 9% lower than Wall Street expectations respectively.

Electrical business model needs to break through

Property dealers have the idea of getting rid of intermediaries, but at this stage there is still not enough capacity. In recent years, the new business expansion of real estate electric platform is more obvious. For example, the new house business model is mainly signed with the Developer service agreement, to provide advertising, organizations, such as the sale of housing marketing services, and advertising fees as a home purchase discount to the real estate electric platform, the final real estate electric dealers to sell home buyers.

In addition, house search and other real estate dealers will also extend to the latter part of the transaction, including security, mortgages, loans and other business. In accordance with the assumption of the tenants, after the completion of the housing transaction, the design of the house decoration, building materials, and even later life services will also be their service scope, thus forming a closed loop.

Zhongyuan Real Estate market director Dawei said that the real estate trading links and complex, relying solely on the electricity quotient, it is difficult to reach the final intention. Therefore, the real estate electric dealer wants to eliminate the real estate intermediary directly, the direct monopoly trade possibility is not big.

Well-known commentator Li Guangji also said, SouFun and other real estate electric business website, the intermediary dependence is strong, still difficult to get rid of intermediary.

Indeed, the intermediary provided by the second-hand housing source is one of the main sources of soufun profits, according to SouFun's first quarter earnings, the total revenue of the 121.2 million U.S. dollars, of which the listing of houses released revenue of 42.1 million U.S. dollars, compared with the same period of 26.8 million U.S. dollars to 57.1%, the proportion of total revenue to 34.7 %。

In view of this, Analysys International analyst Zhao Saijun that real estate electric business and intermediary cooperation is too thin, "need some time to hatch and front-end users docking." "In his view, if only to do information release platform, then search house and so is not a real estate electric dealer," ultimately still want to participate in the transaction link. "And a new house is the best entry point.

In the second-hand housing, Zhao Saijun said that the electronic business platform through the direct docking with individual listings to reduce the dependence on the intermediary. "With the primary room to ensure development, through time to accumulate second-hand housing." ”

In addition, some people also pointed out that the participation of real estate intermediary or strategic cooperation, is to search the house and so on to reduce the reliance on intermediaries another way.