The rapid growth of the pedestrian network, become the Chinese version airbnb.com

Benefiting from sharing the booming economy in China, the establishment of a two-year network of passers-by has grown rapidly in the Chinese market. The net is called "Chinese version airbnb.com", but in fact the business model of this company is richer than Airbnb. Last year, the pedestrian network rental revenue has exceeded 100 million yuan.

Wu Jiahua The one-bedroom apartment in Hangzhou for nearly a year, until she found a solution: known as the "Chinese version of Airbnb.com" of the passers-by network.

Through passers-by home network, Wu Jiahua own 37 square meters of one bedroom rented to a short tenant. While earning money, she can wait for the asset to appreciate. Wu Jiahua's apartment is about RMB 260 per day, the starting price for a four-star hotel near Ctrip. Wu Jiahua, who has retired, said, "I am not worried at all now, I am able to earn income." "She also stressed that the network also for their own apartment to replace towels, arrangements for cleaning up, and let the apartment to maintain the status of their own purchase, thereby eliminating her home network initially suspected:" Whether these people are liars. ”

Share the rise of the economy

This is by no means a hoax. The globalization trend of sharing the economy (sharing economy) has begun to flourish in China. With the use of idle assets held by people like Wu Jiahua, the network, founded more than two years ago, now has more than 80,000 rental apartments in China and overseas. Through the promise of rental income and property management services, passers-by also helped promote the sale of second-hand housing.

"The main advantage of this model is that many people benefit," said Rojun, co-founder and chief executive of the company. He said the role of the pedestrian network is to allow China to combine with the "global share economy".

Unlike Airbnb, which faces legal risks in New York, the company has so far not encountered any regulatory problems. After receipt of the rent, the company will not only pay taxes according to the hotel's tax standards, but also on behalf of the business paid rent-related taxes.

Airbnb, invested by people such as billionaire Thiel Peter Thiel, helped feed the so-called "sharing economy". In the sharing economy, people can provide apartments, electric tools and cars and other items online directly to other people. LendingClub, America's biggest peer-to-peer web-lending platform, is currently investing in Morgan Stanley's former board chairman, John Mack, Sequoia Capital and Blackstone Group.

According to data from China's largest real estate website SouFun, housing prices in China rose 12% per cent last year, helped by the help of Chinese investors and property speculators, which prompted the Government to devise new measures to curb house prices.

Fast growth

"After signing an agreement with us, many developers have raised prices," Rojun said in an interview. "He said that a developer in Xiamen to buyers that the network will lease their development of vacant houses, the real estate of all 800 apartments were immediately sold, and the price per square meter than the developers expected higher than 1500 yuan. Rojun says, "The pedestrian net can let the real estate sale is quicker." ”

Rojun said that the company's rental revenue last year has exceeded 100 million yuan, and from nearly 150,000 high-end property management and domestic services to higher revenue. Rojun said that many high-end property owners do not want to use short-term tenants to charge rent. A spokesman for the pedestrian network said that more than 3000 apartments in transit had more than 70% occupancy rates in 2013. The spokesman said the company currently has more than 400,000 registered members.

"Our rental revenues are doubling every quarter, which is really shocking," says Rojun. He also said more than 70 would-be investors are now seeking to inject money into the home network. Previously, the network has passed HomeAway, Ctrip and other seven shareholders have won the RMB 400 million yuan investment. "It shows just how prosperous the investment-property market is today and how powerful China's spending power is," Rojun said. ”

iresearch, a market research firm, says the company is more involved in leasing and managing businesses than Airbnb or other online leasing sites that offer only consumer-to-consumer platforms. Focus on high-end apartment leasing business, so that the network model risk less and more profitable, in the same complex to centralize properties can reduce spending, and more effective management.

Local

Wang Tingting, an analyst at Iresearch in Beijing, said, "I am more confident about the model of the home network because its services are tailored to meet the needs of our customers." "In addition, it is equally vital to have the support of shareholders such as HomeAway and Ctrip."

Chen Jie, a 34-year-old financial management officer, said the service had prompted her to buy a villa in Qingcheng Mountain, Sichuan province, at a price of 1.5 million yuan last August. In the next 20 years, she will consider the use of Home network services leasing and management of this villa.

"We can stay in the villa for one months each year, and the rest of the time," Chen said, "Let the passers-by find a short tenant and then 55. Without a company like the internet, I would never consider buying a retirement home. ”

According to the information provided by the bank, the Chinese government's goal of doubling the per capita income by 2020 will boost demand for a second house, benefiting developers in tourism areas. Dai Fang, an analyst with Dai Fang Securities, predicts that China currently has 20 million sets to 30 million vacant homes.

According to CICC's data, as of January 31 this year, China's top ten cities in the past five years of residential investment returns of 20% or more. But in the past three years, prices in cities such as Hangzhou, Ningbo and Wenzhou have fallen.

Focus on the search for high-end accommodation of this small market of rich tourists, the passers-by network of ants short rent (mayi.com), SouFun under the world's short-term rental network and other Chinese competitors to distinguish. Ants short rental apartment rental price of less than 50 yuan per day, and travel the World short Rental Network provides a daily 23 yuan student apartment bed. In comparison with 2012, it is expected that the online short-term residential leasing market will soar five times times to 2.9 billion yuan this year.

SouFun's survey of 100 cities in China found that China's housing prices continued to rise 12% per cent last year, even as China's big cities began to rein in prices. "Wealthy Chinese are enough to buy 8 to 10 homes, and people who have no money may not have their own property in life," says Rojun. Even if the rich only rent a set of properties, others can enjoy it. Both sides can benefit. ”

The day after he resigned as co-president of China Real Estate Information Group in August 2011, Rojun flew to Sanya and began lobbying local apartment owners to let him manage their property.

Impact budget Hotel

Ctrip only in the Chinese website to open a pedestrian apartment channel. As of June 30, 2013, about 133 million Chinese internet users (22.4% of the total number of Internet users) have ordered hotels, air tickets or train tickets online, according to a report in August last year.

"The scale of the pedestrian network is not very large yet, but the price competitiveness gives it a huge impact on both the Samsung and the three-tier hotels," said Owen Yang, vice president of Owen Yang Hotel consultancy. "The operators of some budget hotels have recognized this threat.

The housing restrictions issued by many Chinese cities have left developers in a tiger's way, forcing them to start thinking about cooperating with their home networks. "Many of these projects are under pressure and may want to work with online platforms to find buyers," said Qu Anxin, director of research and Development at Zhongyuan Group, Central Plains property, Quanxin. ”

The developers who have signed an agreement with the pedestrian network include the World Trade Organization holding company. Rojun said that China Vanke, the biggest real estate developer by market capitalisation, had also negotiated with its home network on cooperation issues. Rojun said the company has signed a cooperation agreement with developers on about 300 projects, with an average of 500 units. The company is also preparing to sign another 900 cooperation projects.

In the current situation, the pedestrian network in the expansion has not encountered real competition. Gu, vice president of the China Real Estate and Housing Research Association, said, "There really is a huge growth potential in the home network." However, the future performance depends largely on its ability to manage the business and ensure product quality. ”