The Property Industry's Major Restructuring: Saying Goodbye to "Puffiness" – Who's Really Competing, and Who's Just Pretending?
Hello everyone, I'm your financial journalist. Today, we're going to discuss the "mid-term report" submitted by property management companies that went public in the first half of 2026.
If your impression of property management companies was still that they were just "doormen" or "relying on developers for survival," this news might change your perspective. The property industry is currently going through a vigorous process of "defoaming"—getting rid of unnecessary elements. The days of thinking that "the bigger the territory, the more powerful the company" are over; now, it's about "who makes the most money and who is the healthiest."
In simple terms, this list is like a mirror that reveals the truth: some giants are standing still, some dark horses are accelerating rapidly (although there might be some exaggeration), and many companies are struggling to "lose weight" by getting rid of unprofitable projects.
Below, I'll break down this complex industry report into five understandable aspects to show you what exactly this major restructuring involves.
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1. The Top Giants Can't Keep Up: Size Is No Longer a Protection
In the past, when we looked at property management companies, the first thing we noticed was the "area under management." We thought that the larger the territory, the more impressive the company. But the data from this year shows that size doesn't equal strength or speed.
Take a look at the top five companies:
- Country Garden Services: Still the leader, managing 1.186 billion square meters, but with only a 2.3% growth rate.
- Evergrande Property: Although it still manages over 600 million square meters, its growth rate has dropped to 1.2%, almost stagnant.
- China Overseas Property: With a growth rate of 3.7%, it's not very impressive either.
Aside from Greentown Services, which maintains a good growth rate of 8.2%, the other giants are struggling with weak growth. Why? Because the old model of relying on their parent companies (developers) to provide resources, including unfinished buildings, is no longer feasible. With developers facing their own challenges, they don't have many new projects to offer to the property management companies.
Even more concerning is that Elegant Life Services (ranked sixth) and Rongchuang Services (ranked ninth) have seen negative growth in their managed area (by 4.5% and 11.3%, respectively). This indicates that even the top companies are having to make tough decisions. Although the top-tier companies are still dominant, they are also experiencing difficulties. The era of reckless expansion is truly over.
2. The Miracle of Jingfa Property's Growth: Half Success, Half Statistical Tricks
The most eye-catching company on this list is Jingfa Property. Its managed area has soared from 17.49 million square meters to 34.32 million square meters, a nearly 96.1% increase. At first glance, it seems like a super dark horse, right?
Wait before you cheer—let's expose the "trick."
If you look at the data closely, you'll find that about 12.71 million square meters of this increase (75.5%) came from outdoor public areas.**
- In 2025, only indoor areas were counted.
- In 2026, outdoor parks, roads, and public facilities were also included.
It's like if you only counted the number of bedrooms in your home before, but now you're including the garden, playground, and even the roadside green spaces. Suddenly, your "home" seems larger.
While Jingfa Property has indeed seen real growth in urban services, the change in the calculation method is the main reason for its area doubling. So, when evaluating a property management company's growth, you can't just look at the numbers; you need to understand how they were calculated. Of course, Xingye Wulian (+33.0%) and Binjiang Services (+23.4%) also have high growth rates, which are more due to actual business expansion and regional focus.
3. State-Owned Background and Regional Reputation Become Safe Havens in a Downward Trend
In an industry with overall slowing or even declining growth, who is still moving forward steadily? The data highlights two distinct groups of companies:
- State-owned Property Companies with Strong Backing: For example, China Merchants Jiyu (+10.5%) and Yuexiu Services (+10.4%). These companies have strong state-owned parents or stable parent companies. During a downturn in the real estate market, state-owned resources are more reliable, and they can secure high-quality projects more confidently. They don't have to compete on low prices for survival like private companies.
- Regional-Focused, Reputable Property Companies: For example, Binjiang Services and Rongwanjia (+9.5%). These companies may not be as well-known nationwide as Country Garden or Vanke, but they have a high reputation in their local areas, resulting in high customer satisfaction and renewal rates. Their growth comes from word-of-mouth and solid services, not from their parent companies.
The conclusion is simple: In the current market, either you have strong resource backing (state-owned) or a solid reputation (regional leader); otherwise, it's hard to stand out in a tough market.
4. The Wave of Withdrawals: Getting Rid of Unprofitable Assets
This is the most dramatic and painful part of the news. In the first half of 2026, there was a clear trend of withdrawals within the property industry.
In the past, property management companies often took over many low-quality, unprofitable projects just to expand their scale or help their parent companies. These projects were like "toxic assets" that occupied space but caused losses.
Now, companies are becoming more selective:
- Shimao Services: Ended the year with 35.5 million square meters under management, a 219.8% increase, of which 80% were non-residential properties.
- Yongsheng Services: Actively withdrew from over 100 projects, totaling 20 million square meters, including 89 "low-quality" projects (low cash flow, low collection rates). As a result, their cash毛利 increased by 16 million yuan.
- Wanwuyun: Withdrew from 139 residential projects, reducing revenue but decreasing pre-tax losses by 32.33 million yuan.
- China Overseas Property: Withdrew from 19.2 million square meters, focusing on managing profitable projects.
Why the withdrawals? Because unprofitable areas are a liability. Yuexiu Services put it plainly: "This is rational clearing—good assets are driving out bad ones." In the past, companies competed on price, neglecting service, leading to low collection rates and heavy losses. Now, it's better to get rid of these unprofitable assets and focus on profitable, well-managed projects.
It's like losing weight: although the total area may decrease, the percentage of unprofitable projects reduces, making the company's financial health better.
5. The New Competition Logic for the Second Half of the Year: From "Managing More" to "Making Money"
Let's summarize the underlying changes in this major restructuring:
- Past Logic: Size Matters: The larger the area, the higher the valuation and easier financing.
- Dependence on Parents: Relying on developers for projects.
- Heavy Asset Focus: Viewing land as an asset.
- Current Logic (2026 and Beyond): Profit Matters: Unprofitable areas are worthless.
- Independent Survival: Companies must rely on their own services and market expansion.
- Light Assets, Focus on Operations: Getting rid of inefficient projects and shifting to high-value sectors like data centers, hospitals, and offices.
For example, Wanwuyun saw a significant increase in non-residential revenue, and Shimao Services received 81.5% of its new contracts in non-residential areas. Country Garden Services also saw a 53% increase in annualized revenue from new contracts. Companies are moving towards more profitable areas such as industrial properties, technology parks, and luxury commercial spaces.
Implications for Everyone:
If you follow the property management industry or are a property owner, remember:
1. Don't Just Look at Area: A company that manages 1 billion square meters but loses money every year is not as good as one that manages 100 million square meters but makes a profit.
2. Pay Attention to Withdrawal Rates and Profit Rates: Companies that dare to exit unprofitable projects often have a longer-term vision.
3. Service Quality Determines Success: In a market with limited resources, customers' wallets are the ultimate decision-maker. Poor service leads to loss of revenue and potential withdrawal.
The second half of the property industry is about being more efficient and profitable, not just about having a large presence. Companies that rely on superficial growth will eventually be eliminated, while those that focus on improving their services and profitability will be the ones to watch in the long run.