SouFun overall visibility remains low for 2015, according to management. On the macro front, Soufun saw more stimulus policies from local governments lately, and it says moderate recovery has begun. Overall property transaction volume in 2015 could rise 5-10% YoY but uncertainty is still relatively high, it notes. The new direct sales e-commerce model has a higher take rate but lower margins than its traditional e-commerce (coupon) model, as the company is offering customers high rebates for the direct sales e-commerce.
For the traditional e-commerce model, management expects the take rate to decline further to below 50% in 2015. Management remains cautious about the listing business outlook in 2015, but does not expect any more large secondary property agents to leave Soufun's listing platform going forward. Soufun says it will continue to work on the authentication of property listings in 2015, but does not expect to change the listing business model significantly.
