Recently, a new rule in Jurong City, Jiangsu Province, regarding the reduction of property management fees for vacant houses has caught the market's attention. The rule states that if a house is vacant for six months, the property management fee can be discounted by 30%.
In the past year, many cities across the country have witnessed a wave of property management fee cuts. Since February last year, Qingdao City in Shandong Province has implemented a policy of offering a 40% discount on property management fees for vacant houses, while Lanzhou New Area in Gansu Province has lowered the fee to 50% of the original price.
Besides the discounts on property management fees for vacant houses, the current property management fees in many cities have also been reduced. In 2024, more than a hundred projects in four cities including Chongqing, Yinchuan, Qingdao, and Wuhan achieved a reduction in property management fees, with a decrease ranging from 20% to 35%.
Some experts pointed out that the implementation of lower property management fees for vacant houses in many places can reduce the holding cost, which is conducive to increasing home - buyers' willingness to purchase, promoting housing sales, and reducing inventory. Moreover, it also helps improve the collection rate of property management companies. The reduction of property management fees also reflects the transformation pressure faced by the entire property service industry, and changes in the quality of property services are inevitable.
Previously, three departments in Jurong City jointly issued a notice stating that during the vacancy period of ordinary residential houses, the pre - handover public property service fees can be reduced by 30%, which will be implemented from February 1, 2025. On February 21, a detailed explanation of this new rule was provided. It mentioned that if the conditions of ordinary residential property, the owner not moving in or using the house before the establishment of the owners' congress, continuous vacancy for more than six months, and the property being confirmed as vacant are met, the owner can enjoy a 30% discount on the pre - handover property management fee.
Take Jiangsu Province as an example. Not only Jurong City but also Zhenjiang City issued a notice at the end of 2024, stating that from February 1, for residential houses in Zhenjiang urban area that have been continuously vacant for more than six months, the property management fee should be paid at most 70% of the original amount. In addition, Wuxi City, Suqian City, and Yangzhou City have also introduced relevant regulations, while Suzhou City and Changzhou City explored the space for reducing property management fees for vacant houses 10 years ago.
Jiangsu Province is not an isolated case. Since February last year, Qingdao City in Shandong Province has implemented a policy of a 40% discount on property management fees for vacant houses. And in June last year, Lanzhou New Area in Gansu Province introduced a policy to reduce the holding cost of residential houses, charging property management fees for vacant houses that have been unoccupied for more than six months at 50% of the standard.
In addition to the discounts on property management fees for vacant houses, many cities have also seen a wave of price cuts in the current property management fees. In June 2024, the newly revised "Administrative Measures for Property Service Charges in Chongqing" was officially implemented, which clearly stipulates that the pre - handover property service charges for residential houses shall be uniformly subject to the government - guided price. After the implementation of the new rule, some property management companies took the initiative to reduce property management fees. For example, Great Wall Property, which serves the Evergrande Future City community, announced that the property management fee for high - rise residential buildings would be reduced from 2.4 yuan per square meter to 1.9 yuan per square meter, a decrease of about 20%. Some community owners also requested a reduction in property management fees according to the new policy.
According to the "2024 - 2025 Annual Development White Paper of China's Property Management Industry", in 2024, more than a hundred projects in four cities including Chongqing, Yinchuan, Qingdao, and Wuhan achieved a reduction in property management fees, with a decrease ranging from 20% to 35%. In Wuhan, more than 30 residential communities reduced property management fees, with an average reduction of 24%, mostly through negotiation between owners and property management companies.
Besides price cuts, some property management companies announced the launch of "zero - fee property management". At the end of 2024, the property management company of Xinhuating Community in Liuzhou City, Guangxi, issued a notice saying that if the property service contract could be renewed at the end of the year, property management fees would be waived from January 1, 2025, which immediately sparked heated discussions on social media.
Behind the wave of property management fee cuts, it also reveals the changes in the property service industry. The above - mentioned white paper shows that in the first half of 2024, the revenue growth of the basic property services of listed property companies slowed down significantly, with the year - on - year growth rate dropping to 10%. The community value - added services failed to continue the previous growth trend, and the revenue growth stagnated. Notably, the non - owner value - added services faced more severe challenges, with a continuous decline in revenue and a year - on - year decrease of 25%.
With the changes in the real estate market, the traditional way of making profits by relying on high housing prices and high property management fee standards is facing great challenges. In the past, property management companies could ensure profit margins by increasing the fee standard, but as the market demand approaches saturation and consumers' requirements for cost - effectiveness increase, this model is becoming increasingly unsustainable. Although the reduction of property management fees may only be some regional cases, it reflects the transformation pressure faced by the entire property service industry, and changes in the quality of property services are inevitable. Property management companies must change their past extensive operation models and turn to more refined quality - based development, emphasizing both service quality and cost control, and achieving sustainable development by improving service efficiency and optimizing the cost structure.