The author is the general manager of Shenzhen Shipeng Asset Appraisal Real Estate Land Appraisal Consulting Co., Ltd.Shao LifangDivision ManagerSong JuanResearcher of the DivisionHuang HekunIn the Valuation Needs Evolution and Institutional Sustained Development-- 2019China Real Estate Valuation Annual Conference Proceedings2019Years of writing.

Abstract

Valuation agencies encounter many new difficulties and new opportunities in urban renewal. Based on the concept of urban renewal, this paper introduces the importance of urban renewal for land reform in Shenzhen, and then leads to the role of valuation institutions in urban renewal. However, due to the complexity and longevity of urban renewal, valuation agencies are also facing many problems. Valuation agencies have less business in urban renewal and projects are more difficult to do. Therefore, there is an urgent need to get out of the predicament through new opportunities.

Key words]urban renewal; valuation agency; consultant; big data

Book Publication Number]ISBN 978-7-5074-3287-9

citation format]Shao Lifang,Song Juan,Huang Hekun. New problems and new opportunities for valuation agencies in urban renewal in Shenzhen[C].2019Proceedings of China Real Estate Valuation Annual Conference,2019:480-483.

1. urban renewal concept

The concept of urban renewal refers to the necessary and planned renewal and transformation of the old urban areas that are not suitable for modern urban social life. Urban renewal is an important way to tap the potential of stock land and solve the shortage of urban space resources. Through urban renewal, we can optimize the urban space, improve the carrying capacity of the city, improve the living standards of residents, improve the area of public facilities and so on. Urban renewal originated in the United States in the 1960 s and 1970 s. At that time, the federal government subsidized local governments to expropriate slums, and then sold them to real estate developers at low prices for transformation, which in turn led to large-scale urban renewal in the modern sense. The concept of urban renewal in China originated in the 1990 s. Mr. Chen Zhanxiang introduced the concept of urban renewal into China and defined it as a city.“Metabolism”process.

As a special economic zone, a national economic center city and an international city, Shenzhen is at the forefront of the country in the exploration and implementation of urban renewal models. Especially2009Year10Since the Shenzhen Municipal Government promulgated the "Shenzhen Urban Renewal Measures" in January, Shenzhen urban renewal has entered a stage of rapid development. In order to improve the implementation rules of urban renewal, improve the efficiency of urban renewal, and solve the problems left over by Shenzhen's land history, up to now, the government has continuously issued relevant policies on urban renewal, which has led to a substantial increase in urban renewal projects. it is enough to see the importance of urban renewal to Shenzhen.

The Shenzhen Urban Renewal Measures include3Urban renewal methods: demolition and reconstruction, comprehensive renovation, functional change. Among them, urban renewal of demolition and reconstruction is the most popular, and the rest of this paper refers to urban renewal of demolition and reconstruction.

The Role of 2. Valuation Agencies in Urban Renewal

The urban renewal process is complex and involves diversified market entities. The government guides the entire urban renewal process. Real estate developers promote the progress of the project and carry out development and construction of the project. Community joint-stock cooperative companies provide land as the main body of rights. In addition, it also involves a number of third-party agencies, surveying and mapping companies, valuation agencies, law firms, bidding agencies, etc., valuation agencies play an important role in urban renewal.

1, Urban renewal projects require traditional valuation of collective assets. The process of urban renewal for demolition and reconstruction is relatively complicated and time-consuming. It is mainly divided into four steps in the process: establishment of renewal plan, preparation of special plan, confirmation of implementation subject and land formalities. Among them, in the phase of updating the plan, the government requires the community joint-stock cooperative company to conduct a feasibility analysis of the planned project and form a feasibility study report, analyze the social risk of the project and form a social stability risk assessment report, the government requires the community joint-stock cooperative company to hire an appraisal agency to evaluate the collective assets of the community joint-stock cooperative company (including collective land, collective property, non-agricultural indicators, etc.) and form an asset appraisal report. In addition, the Government will engage a separate valuation agency to review the assessment report. It can be seen that in urban renewal, the appraisal agency is one of the third-party intermediary companies, but it is also an indispensable force in urban renewal, and has a certain administrative color.

2The appraisal agency can provide real estate consulting services. Due to the complexity of the urban renewal process, each process is subdivided into multiple steps, from the demarcation of the demolition land scope, willingness collection, feasibility study, renewal plan project declaration, etc., to the building information verification, land ownership confirmation, urban renewal unit planning draft, collective asset evaluation, demolition and compensation scheme analysis, etc., which are compiled by special planning, then to the implementation of the main body confirmation stage of the shareholders' meeting, fund-raising platform transactions, the implementation of the main body confirmation and so on, the whole process of urban renewal there are many difficult questions. With its rich urban renewal experience and good social resources, the appraisal agency can provide third-party consulting services to the government, community joint-stock cooperative companies and real estate developers in urban renewal, and act as a military advisor.

3The role of lubricant in the renewal of the valuation agency. Urban renewal is a development method guided by the government and operated by the market, which is different from the traditional government operation and market participation. One of the problems that the market needs to face is the distribution of benefits, which is also an important difficulty in urban renewal. The problem of benefit distribution is actually a process of mutual benefit game between the two main bodies of real estate developers and community joint-stock cooperative companies. Community joint-stock cooperative companies and private owners want to obtain more benefits from real estate developers, while real estate developers strictly control the benefits of compensation to community joint-stock cooperative companies or private owners in order to have certain profits. This contradiction has continued since the beginning of urban renewal. As a third-party service organization of urban renewal, the appraisal agency designs the most reasonable plan based on the principle of fairness and justice, which not only strives for the maximum benefit for the community joint-stock cooperative company, but also ensures a certain profit for the real estate developer. The valuation agency is not only a fair and impartial representative, but also plays a role in the lubrication of real estate developers and community joint-stock cooperative companies.

Problems encountered by 3. valuation agencies in urban renewal

Valuation agencies have played a very important role in urban renewal, and at the same time, they have encountered some problems. Due to the complexity of urban renewal projects and the gradual reduction of projects, the business of valuation agencies is more difficult to do, and the business is reduced accordingly.

1The gradual decline in urban renewal projects has led to a decrease in the business of valuation agencies. The land area of Shenzhen is1997.47Square kilometers, the area of construction land has reached975.50Square kilometers, from the "Shenzhen City Land Use Master Plan (2006-2020Years) "required2020annual planning control objectives976.00Only square kilometers.0.50The net increase in construction land index of square kilometers, the rapid development of the city so that the increase in construction land is nearly exhausted. And, urban renewal from2009Since its development in, real estate developers have carried out a large number of urban renewal, and some urban renewal projects with small difficulty and large benefits have almost been excavated. At present, urban renewal projects have the problem of low stock of land, and Shenzhen has up.91valuation agencies, which makes the only remaining urban renewal projects, valuation agencies in which the competition is increasingly fierce. In order to win the business, the valuation agencies may have problems such as low fees and vicious competition. At the same time, other third-party service agencies also took a fancy to the big cake of urban renewal, and tried every means to get a share of it. Many consulting service agencies appeared, which further reduced the business of valuation agencies.

2With the complexity of urban renewal projects, the business of valuation agencies is becoming more and more difficult. The Shenzhen Municipal Government is in1992Year and1994The land was requisitioned and transferred in order to realize the nationalization of the land. However, in the process of land requisition and transfer, the villagers resisted one after another, setting off a climax of rush to build and add construction. The land in Shenzhen is nominally state-owned, and the ownership of the land belongs to the state, but in fact it still belongs to collective land, and villagers enjoy the right to use the land. This has caused a series of historical problems in Shenzhen land, and increased the difficulty of urban renewal projects. For the valuation agency, the complexity of the asset valuation process increases the difficulty of the valuation, which in turn makes it more difficult for the valuation agency to do its business.

3Traditional assessment encounters bottlenecks. Nowadays, Shenzhen's urban renewal is becoming more and more mature. Most urban renewal projects can learn from other urban renewal projects in the area. Shenzhen's land prices and housing prices are becoming more and more transparent. Real estate developers and community joint-stock cooperative companies can solve some urban renewal consulting problems by themselves in combination with market conditions. Therefore, most valuation agencies in urban renewal only played the role of traditional assessment, valuation agencies in urban renewal encountered bottlenecks, business is difficult to expand.

New Opportunities for 4. Valuation Agencies in Urban Renewal

Valuation agencies have encountered many difficulties in urban renewal, but there are also new opportunities. Urban renewal involves many fields, including investment and financing, planning, industry, cost, engineering, etc. In addition to traditional evaluation, valuation agencies can also actively expand new businesses and find new opportunities.

1To consult-based, assessment-supplemented model to carry out urban renewal work. Traditional appraisal is in a bottleneck period in urban renewal, and Shenzhen's urban renewal projects are limited, and the profits brought by traditional appraisal to appraisal agencies are also limited. Therefore, appraisal agencies urgently need to expand other businesses in urban renewal. Although the current urban renewal projects are becoming more and more mature, different projects also have their own particularities and cannot be generalized. The whole urban renewal process is complex, from the feasibility study and analysis consultation required by real estate developers in the early stage of land acquisition, to the development loan consultation in the stage of land formalities, real estate developers, community joint-stock cooperative companies and government departments all have consulting business needs in the whole process. Therefore, consulting services are still a business that needs to be focused on in urban renewal by valuation agencies, and valuation agencies can carry out urban renewal work through a model that focuses on consulting and supplements assessment.

2Valuation agencies can provide industry-related services in urban renewal. Under the background of space resource constraints in Shenzhen, in order to ensure the industrial development space, optimize the allocation of space resources, and improve the level of land conservation and intensive use, Shenzhen has issued relevant policies, requiring scientific optimization and layout of industrial development space, and accelerating industrial transformation and upgrading. Under the requirements of the policy, urban renewal has a certain demand for the industrial spatial layout, industrial operation management and industrial development trend in the project. Valuation agencies can provide pre-industry consultation, industry planning research, industry investment and financing, industry development and construction management and other related services in urban renewal.

3Establish a large database of real estate valuation agencies. In today's rapid development of the Internet era, Internet information has penetrated into all walks of life, and big data is the product of the Internet high-tech era. Big data plays an important role in today's society, and big data is a new engine for the sustained and rapid growth of the information industry. Therefore, big data can be applied to real estate appraisal, which can not only improve the traditional appraisal business, improve the professional persuasiveness of appraisal results, improve the quality of appraisal services, but also expand the market space, tap the potential commercial value under big data, and drive the development of the entire appraisal industry data chain, and establish a data sharing mechanism between appraisal institutions. How to apply big data to real estate valuation? First of all, each evaluation institution collects data and establishes database in the information age of informatization and transparency; secondly, it selects useful information, carries out systematic analysis and management, and applies these selected data to evaluation to form targeted solutions; finally, evaluation institutions should give full play to the overall strength of the industry, integrate data resources and establish data sharing mechanism, this can provide better and more comprehensive services. At present, there have been a number of data systems in the market, such as urban renewal investment decision-making system, demolition management system, cloud collection system, etc., but due to limited data access channels, insufficient construction and management of the database, slow marketing and other reasons, resulting in the failure to form a complete data supply and demand market. Therefore, the valuation agency has great prospects in the use of the database.

5. epilogue

In the face of new opportunities, valuation institutions must improve their own capabilities in order to provide efficient, comprehensive, professional and sophisticated services. First of all, valuation institutions need to have a large number of professional talent reserves, and they must have high professional skills and professionalism. Due to the wide range of fields involved in the real estate valuation industry, this inevitably requires valuation institutions to have comprehensive talents, not only rich valuation experience, Have a certain understanding of finance, law, architecture, planning and other related majors, and need to have good communication and coordination skills; secondly, valuation agencies need to have good market resources. In the long-term valuation service process, they must continuously accumulate customer resources, strengthen interpersonal relationships with other agencies and customers, actively expand business areas and enrich service types; finally, valuation agencies need to have good marketing methods, and their own strength is a necessary condition for valuation agencies. In addition, valuation agencies also need to sell their professional strength, let more institutions and enterprises know their own strength.

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