Research On The Application Of REITs In The Operation Of Long-term Apartment

The real estate industry is related to the people's livelihood in China.However,with the continuous rise of house prices since 2016,for the public,the pressure on housing loans has increased and the difficulty of purchasing houses has intensified.The state then launched policies such as "purchase restriction and loan restriction","lease and sale simultaneously".At present,China's annual floating population is more than200 million,and the demand for Housing leasing is huge.In addition,the annual rent of the housing leasing market is no less than Trillion yuan,huge market scale.In this context,as a new industry,housing leasing has developed rapidly.Because of the disadvantages of the previous rent mode,such as large change of rent period,non circulation of information,and the adjustment of population structure,as well as the promotion of relevant policies and other reasons,the long-term rent apartment mode has made great progress,especially the overall operation mode of the institution,which has a more vigorous development momentum.According to the asset structure of long-term apartment operators,it can be divided into two types: light and heavy asset operation.Among them,heavy asset operation mode has a large demand for cost and capital,and at the same time,some investment should be made in property management.Therefore,in a period of time,the market is dominated by light asset operation.However,since2018,there have been various difficulties in the long-term rental apartment market.Up to now,due to the reasons of capital operation and operation,there have been 25 bankruptcies.By 2019,the situation is more severe.The previous capital boom has been declining,which can be said to have reached the "shuffling period".The occurrence of these phenomena makes the light asset operation mode have to be questioned Its development prospect in China,while the REITs mode has developed rapidly in the long-term apartment industry.Based on the above background,the following questions are put forward: is light asset operation feasible in the current long rent apartment market in China? What are the key and difficult problems in the development of REITs? What are the key conditions for long-term apartment operation? What are the internal and external risks and how to prevent them under the existing long-term apartment operation mode?At present,most of the theoretical researches on long-term apartments focus on the categories and characteristics of the operation mode of long-term apartments,but not on a specific operation mode for case analysis.However,the researches on the applicationof REITs mode in the field of long-term apartments mainly focus on REITs as a financing mode,and its characteristics and shortcomings rarely link REITs mode with the operation of long-term apartments Moreover,it fails to deeply analyze the specific operation steps,implementation effect and relevant risks of REITs mode in the operation of long-term rental apartments.This paper mainly uses literature review,comparative analysis and case analysis,based on the long-term rental apartment market in China,studies the application of the real estate trust investment fund in the operation of long-term rental apartment enterprises in China with the case of Xinpai apartment,and analyzes the financial effect of the implementation from the angle of the new apartment operators,summarizes the necessary conditions and long-term success of long-term rental apartment operation The risk of the development of long-term apartment,put forward the prospect of asset operation of long-term apartment,provide reference for the follow-up research of asset operation mode of long-term apartment,and provide warning for the application of asset operation mode of long-term apartment in practice.The case study found that: China is vigorously promoting the development of REITs for long-term apartments,and gradually standardizing the market operation and development of long-term apartments.The key conditions for the successful operation of CYPA apartments are:(1)perfect operation management system;(2)steadily increasing rental rate.At present,the key and difficult problems in the development of REITs in China are:(1)problems in the quality of underlying assets;(2)great tax burden and imperfect policies;(3)low return on rent of long-term apartments in China.According to the future development of long rental apartments,we should(1)innovate profit models;(2)with the help of "Internet plus";(3)strengthen brand building;(4)cultivate talents in apartment industry;(5)pay attention to risk prevention.Through in-depth analysis and interpretation of the new apartment asset operation mode,this paper stimulates the development vitality of long-term apartment in China,not only provides reference model for the industry,improves the brand operation,capital turnover and large-scale development of long-term apartment in China,but also provides a new breakthrough point for the asset operation mode of long-term apartment enterprises in China,which is conducive to the sustainable development of long-term apartment.