Languishing under battered fortunes in a crestfallen housing market, mainland homes builders have resorted to "walking down the aisle" with the nation's Internet barons in a purportedly desperate bid to keep their heads above the water.

They call it an exciting, brand new revolution in the industry - creating the mainland's first "smart" real estate communities that could spark a future development trend marred by savage competition.

"It's Web Valentine's Day", blared an announcement in cyberspace by Huayuan Property Co Ltd and Franshion Properties (China) Ltd on the same day, May 20, as they proclaimed their respective "marriages" with Internet supremos Qihoo 360 Technology Co Ltd and Ma Huateng's Tencent Holdings Ltd.

Beijing-based Huayuan Group - one of the mainland's major property developers - and Qihoo 360 - a leading Internet security software provider - will join forces in creating "smart" homes, promoting the wide application of Qihoo's smart-home eco-system in Huayuan's backyard, and striving to build a secure and intelligent community and home-security system.

In a prelude to the tie-up, Qihoo announced earlier this year it will fork out more than $1.6 billion to put up a "smart-home" eco-system, using cameras and smart routers, to enable homes owners to manage their security and other home appliances via cloud-computing technology.

"Qihoo 360 will design and provide home-security intelligence products and management systems, including intelligent cameras, smart routers, smart bracelets and watches for the elderly, as well as electrical, gas and smoke-smart alarm devices," Huayuan Property General Manager Sun Yuyan told China Daily.

Their first "smart community" project will take off on a trial basis in Changsha, capital city of Hunan province. It will comprise top-end apartments and office buildings and, if successful, it will be extended to Beijing, Shanghai and the whole country.

"The 'smart community' will conform to Internet thinking - that is, users' experience comes first," said Qihoo 360 founder and Chief Executive Officer Zhou Hongyi.

In his view, in this Internet era, the transition of traditional companies doesn't lack money or people, but Internet thinking.

Franshion Properties, which has extensive real estate interests across East and Central China, including Beijing, Shanghai and Changsha, said it will team up with Tencent to establish a "2+X" smart community, which will involve Internet community finance and cloud services.

The pilot project will be located in the Beijing Yizhuang Development Zone. In the design and construction stage, face-recognition technology will be applied in the "smart" community, while property owners will be provided one-stop customized financial services, involving mortgages, home decoration, travel and education.

In cloud services, Franshion will join Tencent's WeChat, games, video, music and automobile platforms to offer a series of Internet services.

Li Congrui, president of Franshion Properties, commented: "The mainland's economy has come under notable downward pressure and has entered a stage known as the new normal. The traditional large-scale development pattern is hard to continue, so integrating the Internet and information and communication technology with various industries will become the future development trend."

He said the project will bring about endless opportunities and challenges in the strategic upgrade of Franshion's property products and exploration of "smart" living.

The developer-Internet link-up marks the first time that mainland property enterprises have entered into such strategic and comprehensive cooperation with the high-tech sector.

Industry insiders said the move would stimulate the property industry while, at the same, potentially stirring up fierce market contest.

Pan Shiyi, chairman of SOHO China Ltd - the mainland's largest prime office real estate developer - said he reckoned that the trend augurs well for the housing sector.

"Nowadays, real estate companies are on the lookout for partners. Huayuan knows nothing about the Internet, while (Qihoo) 360, an Internet enterprise, doesn't know about property. So, they can cooperate well and will not fight."

He sees the Huayuan-Qihoo partnership as a win-win scenario, allowing them to work to their mutual benefit.

Ren Zhiqiang, former chairman of Huayuan Properties, said he had intended to find a path for the transformation of the traditional industry through such cooperation, hoping that all consumers can relish the part of life brought about by the Internet.

"At present, the property industry hasn't really been shocked by the Internet, but it'll certainly be dismembered by the Internet in the near future," Ren said.

The notion of "Internet Plus" has already grown popular after having been highlighted by Premier Li Keqiang in his government work report.

The plan aims to integrate mobile Internet, cloud computing, big data and the Internet of Things with modern manufacturing to encourage the healthy development of e-commerce, industrial networks and Internet banking, while helping Internet companies to raise their international profile.

Liu Xiaoguang, chairman of the Beijing Capital Group Ltd - a State-owned builder - said he's curious about "Internet Plus".

There's much room for cooperation between property and Internet firms, he said, but "what to plus and how to plus must be considered carefully, not to plus blindly, otherwise, there'll be bubbles".

fanfeifei@chinadaily.com.cn

A motorist drives past the Jinmao Palace High Street project, developed by Franshion Properties China Ltd, in Beijing. Internet technology is shaping the landscapes of various industries on the mainland, including the property sector. Brent Lewin / Bloomberg

(HK Edition 05/23/2015 page6)