New Delivery Projects' Vacancy Rates Climbing; Wanwu Cloud's Net Profit Expected to Decline Nearly 40% in 2025

WealthCoffee · 2026-03-22T06:34:02+00:00

Evergrande Property Services Chairman Zhu Baoquan stated that real estate sales pressure has impacted the property management industry. He expects the market will remain difficult to stabilize in 2025, with new delivery communities experiencing vacancy rates exceeding 30%, which is dragging down the company's turnover and gross margin. These vacant units include both unsold and unoccupied properties. Evergrande Property Services is a property management company that went public independently following its spin-off from Evergrande.

WealthCoffee

2026-03-22 06:34:02

Abstract generation in progress

[Caixin] The pressure from real estate sales is being transmitted to the property management industry. At the earnings conference held on March 20, Zhu Baoquan, Chairman and General Manager of Wanwu Cloud Space Technology Services Co., Ltd. (02602.HK, hereinafter “Wanwu Cloud”), stated that by 2025, the real estate market will still not have stabilized. As the “guaranteed delivery of homes” task nears completion, the unexpectedly high vacancy rates will pose new challenges for developers and property management companies.

“Currently, houses are not easy to sell. Most of the newly delivered residential communities we handle have vacancy rates exceeding 30%. These vacant units include unsold new homes from developers as well as properties that owners have purchased but have not received or moved into,” Zhu Baoquan said. As Wanwu Cloud’s residential projects increase, the vacancy rates continue to rise, which has dragged down the company’s turnover and gross profit margins.

Vacancy rates hinder property fee collection

Wanwu Cloud is an independent listed property management segment spun off from China Vanke Co., Ltd. (000002.SZ/02202.HK, hereinafter “Vanke”). Vanke directly and indirectly holds about 661 million shares, accounting for approximately 57.26%. According to Caixin, Wanwu Cloud’s new projects mainly come from related company Vanke.

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