615 Ridiculous Demand (1/2)
”Yesterday at midnight, all 200,000 units of level one property were sold out with an average sell price of 111,000 US dollars. The highest final price was 300,000 US dollars.” Xia Shiyu's voice shook as she reported to Jiang Chen, but she still tried to keep a stern expression.
She didn't think that the project that burned through a lot of money would be so profitable.
Before the construction was even complete, tens of billions were already in their hands and the majority of the capital cost was recovered.
But she knew that the reason why the price was so high was partially due to the excessive coverage by the media, and partially due to the terrifying promotion capability of the virtual reality platform. One gifted Penglai City investment value while the other gave Penglai City enough room for imagination.
Even a great branded product has the fear of not selling, not to mention one that is still under construction.
But Jiang Chen didn't seem too pleased with the price.
”The price is bolstered to 300,000 US dollars… it is almost close to the housing market in Hua.” Jiang Chen was shocked.
Based on his plan, even the level three property that would be open for sale were only starting at 200,000 US dollars. The investors' energy was hard to believe, but the price being bolstered too high may not be beneficial for long term benefits.
”This is the result of using user's ID to limit purchases. If we didn't restrict each user being able to only one level one or two properties, the average price probably would have doubled. Because of the purchase restriction, it decreased the appreciation potential of the property,” Xia Shiyu said, pushing up her glasses.
”What about the level two property?” Jiang Chen nodded and asked again.
There were 100,000 units of level two property with a bidding price of 50,000 US dollars; the size is 110-120 square meters; the primary target is the middle class.
Xia Shiyu continued to report.
”All level two units were sold with an average price of 217,000 US dollars; the highest price was 600,000 US dollars.”
[An average price of 10850 RMB per square meter... this is insane. Is this even the housing price of a new developed area? The location of the level two units are not even considered ”city center” at all.]
Other than the concepts of a high tech city, a tourism area, and a high degree of freedom, the investors didn't investigate other factors such as quality of life, education, transportation, work environment at all.
Although Future Group accepted refunds, it was calculated based on the initial bidding price. Therefore, if someone purchased a level two property with 600,000 US dollars, Future Group will only refund the starting bid of 100,000 US dollars, unless it will be sold to an investor willing to take over.
”Some real estate developers proposed a partnership opportunity; they are willing to purchase ten thousand units of both level one and level two properties at the unit price of 200,000 and 400,000 US dollars. They also promised to bolster the price of the remaining units to a price of 300,000 and 600,000 , as long as we agree to lift the purchase restriction and permit everyone to possess three units of level one or level two properties.” Xia Shiyu continued.
”The value created by a worker in a life time is far greater than the value created by a property. We are creating an endless gold mine. If we exchange the gold mine into cash too early, it will be too shortsighted.” Jiang Chen sighed.
When he was creating Penglai, he didn't plan to make it into a product. Although he admits that bolstering housing prices was the fastest way to make money.
But if he really wanted money, why not just make Future Group public?
This is the faster method. With Future Group's profitability, it can easily break the trillion mark…
Wall Street investors came more than once to him, and even flew to Coro Island to wait for Jiang Chen at the door of Future Building. They wanted to convince him to go public on NASDAQ and everyone believed Future Group's market cap would smash the trillion mark.
”This is my thought too, so I rejected them for you.” Xia Shiyu grinned.
From Jiang Chen's insistence of remaining private, she already understood his thought process.
”You know me the best.” Jiang Chen nodded while looking at her.
”Ahem,” Xia Shiyu coughed and looked away somewhat red. Then she changed the topic, ”Also, regarding the problem with commercial land, over 95% of our clients in the landmark building, The Heart of the Sea, applied to enter Penglai. These companies include hotel, dining, retail, and life sectors. But some companies hoped that the renovation could be done by their own people because of existing contracts.
”That's not possible,” Jiang Chen shook his head. ”Penglai's construction material mostly uses bubble aluminum and graphene, the construction and renovation can only be done with construction robots. They'll have to renegotiate the contract.”
Xia Shiyu nodded.
”The last is education. We already sent out invitations to 12,300 top teachers from over one thousand schools worldwide. But we didn't receive very positive responses… they seem to remain cautious in teaching internationally.”
Based on the construction plan of Penglai City, there will be fifteen elementary schools, ten junior highs, eight high schools, and one university to provide education services to Xin.