Vanke Property is spearheading a transformative approach to property management fee pricing, with its latest initiative in Chongqing drawing widespread attention.
The Nan’an District Nanping Town People’s Government recently issued a notice regarding an interim homeowners’ meeting at Vanke Jinyu Xuefu Hanlin community, scheduled from June 6 to 25. The meeting will focus on renegotiating the property service contract, introducing an innovative “flexible pricing” model that grants homeowners both service selection and pricing authority.
Community Profile and Pricing Details
Vanke Jinyu Xuefu, located in Chongqing’s Er’tang area, is a large-scale development comprising Hanlin and Hanjiang sections. The Hanlin section alone spans nearly 300 acres with a total construction area of approximately 855,700 square meters, featuring high-rise buildings, townhouses, apartments, and commercial spaces across more than 9,000 residential units.
Since its initial handovers in late 2016, the community’s preliminary property management contract has expired. Chengdu Vanke Property’s Chongqing branch has proposed a new five-year contract with revised pricing:
- High-rise: ¥2.28/sq.m/month (previously ¥3)
- Townhouses: ¥2.58/sq.m/month (previously ¥3.8)
- Apartments: ¥2.62/sq.m/month (previously ¥4)
- Commercial: ¥5.2/sq.m/month (previously ¥9)
- Parking: ¥80/month/space (unchanged)
The new rates represent approximately a 30% reduction for residential properties and a 42% cut for commercial spaces.
Revenue Sharing and Service Innovation
The proposed contract includes a novel revenue-sharing mechanism for common area income – after deducting 20% for operational costs, the remaining 80% will be allocated to homeowners. Half of this amount will be distributed as cash payments, while the other half will fund community improvements, with expenditure details subject to homeowner oversight.
This initiative follows Vanke Property’s December 2022 launch of its “Smart Choice” program, which introduced flexible pricing nationwide. The program offers homeowners a menu of 158 essential and 350 optional services, allowing communities to customize service packages and corresponding fees.
Industry Implications and Government Involvement
Vanke Jinyu Xuefu Hanlin represents Chongqing’s first implementation of this model and notably features direct government participation. With no established homeowners’ association, the Nanping Street Office is facilitating negotiations between the property manager and resident representatives.
Industry analysts suggest this government-backed approach signals potential for nationwide adoption, marking a significant step toward establishing quality-based pricing systems in China’s property management sector. While some applaud the model as innovative win-win solution, others view it as a strategic move by Vanke to retain management contracts through price reductions.
Currently, over ten Vanke-managed communities across China have adopted the flexible pricing system, with observers anticipating broader rollout as the model gains institutional support.
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