Furui Real Estate - Feasibility and Positioning Study of Apartment Projects Without Property Rights
Company overview
Furui Real Estate (full name: Guangzhou Furui Real Estate Co., Ltd.) was founded in 1994 and is one of China's leading real estate developers, with business operations spanning residential development, commercial real estate, hotel management, and property services. Headquartered in Guangzhou, Furui Real Estate went public on the Hong Kong Stock Exchange Main Board in 2005 (stock code: 2777.HK). The company is committed to delivering high-quality projects across major Chinese cities and overseas markets, actively exploring diversified business models. In the rental housing sector, Furui Real Estate has already established a long-term rental apartment business, actively responding to the national policy of "equal emphasis on rental and purchase" in housing system reform.
Research background
In recent years, both the state and local governments have introduced a series of policies to promote the development of the housing rental market, and long-term rental apartments as a new type of rental product have attracted increasing market attention. The Furui long-term rental project located in Tangdeng Village, Tangxia Street, Tianhe District, Guangzhou, operates on collectively-owned land and thus lacks property rights, facing policy restrictions such as "prohibition of using rental to substitute for sale" and "maximum lease term not exceeding 20 years." Under this context, Furui Real Estate plans to conduct an in-depth study on the project's feasibility, target customer segments, and operational strategies to address industry policy risks, refine product positioning, and ensure the project's sustainable operation.
Research scope
In September 2017, CEIDEA Research was commissioned by Guangzhou Furui Real Estate to conduct a comprehensive study on its long-term rental project located in Tangdong Village, Tianhe District. The research covered a systematic review and interpretation of national and local policies regarding legal, tax, and planning regulations for rental projects without property rights, assessing the policy risks associated with the "right-of-use sales plus long-term lease contract" model. It also analyzed the overall supply and demand dynamics and development trends in the long-term rental apartment market. The project included benchmarking against industry peers, conducting interviews with multiple operators of similar long-term rental apartment projects to understand their operational responses to policy implementation and actual project outcomes. Based on existing brand product configurations, pricing strategies, and customer profiles, the study explored mature operational models in the industry. Additionally, the research delved into potential buyers and tenants, examining their expectations and preferences regarding unit size, floor plans, prices, delivery or move-in timelines, interior design styles, and supporting facilities. Through questionnaires and interviews, customer profiles for both sales and rental segments were established, analyzing demographic characteristics such as age, occupation, income, travel habits, and consumption patterns. Leveraging the characteristics of densely populated areas surrounding the project, including office and commercial zones, the study provided actionable insights for overall project positioning and product design.
Expected outcomes
This study will enable Furui Real Estate to fully understand policy directions and market dynamics, clearly identify project feasibility and potential risks, and accurately capture the core needs of its customers. The research findings will provide Furui with actionable recommendations in areas such as project positioning strategy, design of sales and rental pathways, and optimization of product and supporting service offerings, helping the project achieve compliant, efficient, and sustainable operations under existing policy constraints.
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