Core Viewpoint - Multiple property management companies are initiating a wave of project withdrawals due to operational pressures and unresolved issues with property fees, leading to a significant decline in property management profitability across the industry [1][4][7]. Group 1: Company Withdrawals - China Overseas Property has announced its withdrawal from the Shuangchuang Star community in Ezhou, effective August 31, 2025, citing low occupancy rates and high unpaid property fees as reasons for ongoing losses [1]. - Over ten property management companies, including Longfor Property and Jin Ke Service, have issued similar withdrawal announcements, primarily due to unresolved historical issues with developers and low collection rates [7]. Group 2: Declining Property Fees - A nationwide trend of decreasing property fees is observed, with some areas experiencing reductions of nearly 40% [4][11]. - Major cities like Shenzhen and Shanghai have seen luxury properties negotiate fee reductions, with decreases reaching 3 yuan per square meter [12]. - The China Index Academy reported that the average gross profit of the top 100 property service companies in China is projected to decline by 1.34% year-on-year, with net profit down by 4.71% [10]. Group 3: Policy Changes and Discounts - New regulations in cities like Changsha and Zhenjiang allow for significant discounts on property fees for unoccupied homes, with discounts reaching 30% to 50% [13][14]. - Various cities are implementing similar policies, providing substantial savings for owners of vacant properties, indicating a broader trend in the industry [14].

Core Viewpoint - The article discusses the recent trend of decreasing property management fees across various cities in China, highlighting the reasons behind this phenomenon and its implications for property owners and management companies [3][4][6]. Group 1: Property Fee Trends - Property management fees have been decreasing in many cities, with reductions ranging from 20% to 35% in areas like Chongqing, Yinchuan, Qingdao, and Wuhan [4]. - The average property fee in China is reported to be within 2 yuan per square meter per month, with a significant increase of 8.2% annually from 2015 to 2023 [11][12]. - The overall satisfaction rate of property management services among homeowners is relatively low, with a score of 73.1, indicating a gap between service expectations and delivery [20][27]. Group 2: Reasons for Fee Decrease - The decline in property fees can be attributed to both market dynamics and government interventions. Increased housing supply has led to higher vacancy rates, prompting property management companies to lower fees to attract residents [35][36]. - The number of property management companies has surged from 58,000 in 2008 to nearly 370,000 in 2024, intensifying competition in the sector [39]. - Government regulations, such as the new property service fee management guidelines, have empowered homeowners to have a say in fee adjustments, further influencing the pricing landscape [40][41]. Group 3: Changing Relationship Between Owners and Management - The shift towards lower fees necessitates a focus on service quality, as homeowners increasingly expect value for their payments. The relationship between property management companies and homeowners is evolving towards a more equitable model based on service quality [44][52]. - Property management companies are adapting by enhancing service offerings, such as introducing home services and community activities, to meet homeowner expectations [46]. - The emphasis on quality service is becoming crucial for property management companies to maintain a stable cash flow, especially as the real estate sector faces challenges [52].

Group 1 - The core viewpoint of the article highlights a significant trend of decreasing property management fees across various cities in China, with reductions ranging from 20% to 35% in many residential communities [2][4] - In Chongqing, the property management fee dropped from 1.8 yuan to 1.3 yuan per square meter, marking a decrease of 27.8% [1] - The overall average property management fee in China has seen an annual increase of 8.2% from 2015 to 2023, indicating a historical trend of rising costs prior to the recent declines [11][12] Group 2 - The article discusses the perception of property management fees as "high charges with low service," leading to dissatisfaction among homeowners [5][21] - A significant portion of homeowners, particularly in mid-range residential areas, express dissatisfaction with the services provided by property management companies, contributing to a 3.3% turnover rate in property management companies from 2021 to 2024 [17][22] - The average satisfaction score for property management services in 2023 was only 73.1, indicating that many homeowners feel the services do not justify the fees they pay [20][26] Group 3 - The decline in property management fees is attributed to both market dynamics and government regulations, with increased competition among property management companies leading to price reductions [34][46] - The number of property management companies in China has surged from 58,000 in 2008 to nearly 370,000 in 2024, intensifying competition in the sector [38] - Government initiatives, such as new regulations in various cities, have also played a role in facilitating lower property management fees [41][45] Group 4 - The relationship between homeowners and property management companies is evolving, with an emphasis on service quality and value for money becoming increasingly important [48][58] - Homeowners are now more empowered to choose and manage their property services, reflecting a shift towards a more equitable relationship between the two parties [44][53] - The article suggests that the recent trend of lowering fees should not compromise service quality, as homeowners expect a balance between cost and service [47][59]