Core Insights - The property management industry is transitioning to a stock market competition due to the downturn in the real estate market, with a focus on core areas and key cities [1][4][5] - The average managed area of the top 100 property management companies is projected to be 69.463 million square meters by the end of 2024, reflecting a year-on-year growth of 2.18%, but a decline in growth rate by 4.03 percentage points compared to the previous year [4][5][10] - Companies are shifting from "expanding area" to "enhancing efficiency," focusing on high-quality, sustainable development and optimizing project portfolios [2][8][9] Industry Trends - The overall growth rate of managed areas has slowed down, with the real estate market entering a deep adjustment phase since 2021, leading to a continuous contraction of incremental space [5][7] - The number of companies experiencing a decline in managed area is increasing, with approximately 10% of the top 100 companies showing a downward trend by the end of 2024, up 4 percentage points year-on-year [10][13] - The average contract area for the top 100 companies is expected to reach 88.478 million square meters by the end of 2024, with a year-on-year growth of 1.01%, also reflecting a decline in growth rate [4][5] Strategic Adjustments - Companies are actively optimizing their project portfolios by exiting low-quality projects to focus on high-quality, profitable ones, which is essential for sustainable development [8][9][34] - The focus on non-residential sectors is increasing, with companies expanding into areas such as hospitals, schools, and transportation, although the proportion of non-residential management area has not significantly increased [14][21][23] - The strategy of "focusing and deepening" is becoming more prominent, with companies concentrating resources on core markets and advantageous businesses to enhance competitive advantages [34][36][38] Market Expansion and M&A - The proportion of third-party management area among the top 100 companies is stable at 54.83%, indicating challenges in market expansion despite efforts to increase market share [24][26] - The M&A market is becoming more rational, with a focus on integrating internal resources rather than aggressive market acquisitions, reflecting a cautious approach to growth [26][28] - Companies are leveraging AI and intelligent platforms to track market dynamics and identify project opportunities, enhancing their market expansion capabilities [32][33]