Talking until eleven o'clock, they moved to a private room for dinner.

The highlight of the meal was seafood, prepared by a master chef specializing in Fujian cuisine. Dishes like blanched sea snails, oyster omelets, stir-fried spicy clams, and steamed grouper were exquisitely prepared and tasted delicious.

Su Yehao particularly enjoyed the squid in soy sauce and the abalone in teriyaki sauce, finishing off with a taste of Buddha Jumps Over the Wall soup, which was a true delight.

After downing two and a half glasses of baijiu (white liquor), Su Yehao felt a little tipsy.

Once they were full and satisfied, Su Yehao was about to find a place for a nap when Boss Xu, who had been holding back for quite some time, finally found an opportunity to ask:

"President Su, you previously instructed our Hengda to develop long-term rental apartments. What exactly is the rationale behind this? Forgive my limited vision, but I've been pondering it without guessing any profound meaning."

Su Yehao put his hands in his pockets, walking forward on the golf course's lawn. The glaring sunlight made it difficult for him to open his eyes, and he replied with a smile:

"The real estate market is doing well now, and it's likely to continue to be good for the next ten years, but business people can't just look at the present."

"This round of the financial cycle has been booming for six or seven years, and you never know when problems might arise. Hengda should stabilize a bit. I think the rental housing market has some potential. Currently, in first- and second-tier core cities, building small, well-furnished apartments costing one hundred to two hundred thousand yuan could yield thirty to forty thousand yuan in annual rent. After recovering the principal, everything else is pure profit, and the property itself also has the opportunity to appreciate in value."

"Among so many real estate companies in the mainland, most are doing one-off deals. The market is starting to go crazy, which makes me a little worried. I suggest you transform in this direction, creating a chain rental brand. You don't have to worry about funding. If Hengda owns one or two million small apartments, you will definitely sit firmly on the throne of the number one real estate company in China, weathering both bull and bear markets, with limitless prospects..."

It was a very simple math problem.

In the future, the average rent for apartments in first- and second-tier cities would be two thousand yuan per month, which is twenty-four thousand yuan per year.

Assuming an 80% occupancy rate, renting out 800,000 out of a million apartments would generate nearly 20 billion RMB in annual rental income, in addition to extra income from property management, parking fees, advertising, and retail.

Although the initial investment would be huge, it would be a one-time investment with a payback period that could last for hundreds of years, with an average return rate exceeding Su Yehao's investment in hydropower stations.

Even better, there was currently no one competing with him. If he used the banner of solving housing problems, he might have the opportunity to bypass land auctions again and enjoy preferential loan interest rates.

In the future, he could develop and mortgage simultaneously, and the snowball would grow in a few years. By then, cooperating with Si Hai International's real estate brokerage company and having internet platforms help with promotion, finding tenants wouldn't be a problem.

Others couldn't manage such a large operation. If they developed houses that couldn't be sold, they would be forced into a dead end by financing costs.

But Su Yehao wasn't worried about any of that.

He didn't even need to specifically inform the bank. As soon as he released some information, the bank's people would line up and beg to give him money.

As for taking away umbrellas on sunny days and withdrawing them on rainy days, no one would be so bold.

Now, if Su Yehao coughed, the entire A-share and Hong Kong stock markets would shake. If he stamped his feet, the GDP growth target might also be reduced by one or two points.

The title of "financial strategic level" was not a joke.

It's worth mentioning that the assets under management by the asset management group worldwide have exceeded 310 billion U.S. dollars.

At least no bank in the mainland would be so stubborn as to risk causing financial turmoil by withdrawing Su Yehao's loans. Words like "too big to fail" and "richer than a country" now seemed tailor-made for him.

Since Su Yehao said there was no need to worry about funds, Boss Xu immediately felt relieved and replied with a smile:

"As a real estate developer, who wouldn't want to lie down and collect rent after developing a project, like Si Hai International, Sun Hung Kai Properties, and Wharf Holdings? It's much easier than us struggling back and forth. The main reason is that the situation doesn't allow it. Firstly, the rent-to-sale ratio is too large, and the rent is not even higher than the loan interest rate. Secondly, it takes up too much capital. But since President Su has already made a decision and is willing to help, then I will follow it. After investigating and understanding, should I send you a report?"

Su Yehao nodded and said:

"Okay, don't call me 'President.' It makes me sound old. Regarding the rent-to-sale ratio issue, the situation varies from country to country. Many people in Europe never buy a house, while we buy our own if we can, even if we don't have money, we have to force ourselves to take out a loan."

Boss Xu interjected:

"Yes, saying that a low rent-to-sale ratio proves that housing prices are too high is obviously a misconception. People are crowding into big cities. Once they buy a house, they live there for a lifetime, and many no longer enter the circulation market. The per capita income may not match housing prices, but even if only a small number of people have money, the number of potential homebuyers is still astonishing. First- and second-tier cities don't have too many houses, but too few. Residence permits, education, etc., are all tied to houses, and renting is not convenient enough."

Su Yehao was a little drunk, but his mind was still clear. After listening, he added:

"Then again, if there are no thresholds, I'm afraid that in a few years, places like Shanghai, Beijing, and Shenzhen will have populations that swell to seventy or eighty million. Small and medium-sized cities will quickly lose their appeal. Ultimately, it's still a problem of too much population."

Boss Xu continued:

"If we develop small apartment-style residences on a large scale, would it be easier to use prefabricated buildings, building them directly in other places and stacking them up like building blocks?"

Of course, Su Yehao knew what prefabricated buildings were. After thinking about it, he replied:

"Transportation is more troublesome, and the cost will be higher than ordinary buildings. The sound insulation and seismic performance are also slightly worse. I don't feel there is much need. I suggest developing more two-elevator-eight-apartment or four-elevator-sixteen-apartment layouts with corridors to strive for north-south ventilation. At that time, learn from the management of foreign long-term rental apartments. Any tenant who doesn't follow the rules will be evicted. Since it's a long-term business, establishing a good reputation is very important. In addition, the noise between floors must improve comfort."

Boss Xu originally thought it was going to develop commercial and residential buildings. Only after hearing these words did he realize that he was really planning to build small residences, otherwise, it would be difficult to achieve north-south ventilation.

Construction is definitely not a problem, but the cost will be slightly higher than commercial and residential buildings that maximize space utilization.

Based on an average cost of 150,000 RMB per unit, if one million units are built, the total investment would be 150 billion RMB. This number made his head spin.

Fortunately, with Su Yehao backing him, although it felt exaggerated, it didn't seem like a big deal.

Boss Xu could already imagine in advance how envious his peers would be once this plan was announced...