Actively explore new development modes of real estate industry.
Our commentator Fan Dazhao
Today’s editorial
The real estate industry has a large scale, a long chain and a wide range of aspects, and it occupies a fairly high share in the national economy, the fixed assets investment of the whole society, the local fiscal revenue and the total loans of financial institutions. All localities should strive to stabilize land prices, house prices and expectations, strengthen the coordination of regulatory policies such as finance, land and market supervision, meet the reasonable credit demand of housing enterprises, and keep the bottom line of no systemic risks. The real estate industry should also explore new development models and find new growth points to make urban and rural people live more conveniently, comfortably and beautifully.
In 2021, the Central Economic Work Conference made important arrangements for promoting the virtuous circle and healthy development of the real estate industry, urban construction and rural construction, and proposed to adhere to the positioning that houses are used for living, not for speculation, strengthen expected guidance, and explore new development models; Promote the construction of affordable housing and support the commercial housing market to better meet the reasonable housing needs of buyers. Wang Menghui, Minister of Housing and Urban-Rural Development, told the media recently that real estate should not be used as a tool and means to stimulate the economy in the short term, and a long-term mechanism for real estate should be implemented steadily next year, so as to promote the virtuous circle and healthy development of the real estate industry.
Since the implementation of the long-term real estate mechanism, with the joint efforts of all parties, China’s real estate market has been generally stable. In the second half of this year, the real estate market is expected to change significantly. According to the November data released by the National Bureau of Statistics, the sales prices of commercial housing in 70 large and medium-sized cities continued to decline month-on-month, and the year-on-year growth rate continued to fall, and the market showed a cooling trend. It is worth noting that this year 1-mdash; In November, the national real estate development investment also showed a downward trend month by month.
At present, the real estate market is cold, which is influenced by the factors of debt default risk of individual real estate head enterprises, and also the result of the bottleneck of real estate development and operation mode. Real estate has long followed the development model of "high debt, high leverage and high turnover". Under the pressure of continuous regulation, market cooling and difficult financing, housing enterprises are often in trouble because they are unsustainable. The current downturn in the real estate market once again proves that the urban and rural construction mode of "massive construction, massive consumption and massive emission" is unsustainable. This development mode does not meet the requirements of high-quality development, but also accumulates many potential risks.
Next year, China’s economic development will face triple pressures of shrinking demand, supply shock and expected weakening, and the external environment will become more complicated, severe and uncertain. The more we face the downward pressure on the economy, the more we must recognize the situation and maintain strategic strength. The fundamentals of China’s economic stability and long-term improvement have not changed, and China’s development is still in an important period of strategic opportunities. Similarly, the fundamentals of China’s real estate market have not changed, and housing demand is still strong. At present, China is still in the stage of rapid urbanization, with more than 11 million newly employed people in cities and towns every year, which brings a lot of new housing demand. At the same time, a large number of old houses built before 2000 are small in area, poor in quality and incomplete in supporting facilities, and there is a strong demand for improved housing for residents.
In the new development period, the real estate industry should not be regarded as a tool for wealth accumulation, but should return to the normal track of serving people’s livelihood and meeting consumer demand. Housing and urban and rural construction are the largest domestic consumer market, and are important areas for steady growth, expanding domestic demand and building a strong domestic market. Real estate enterprises should not only face up to the immediate difficulties, but also firmly develop their confidence. At the same time, all localities should take "ensuring the delivery of buildings, people’s livelihood and stability" as the primary goal, and take the rule of law and marketization as the principle to ensure that the interests of buyers are not lost. Relevant departments should speed up the approval and lending of personal mortgage loans, focus on meeting the needs of the first suite and improvement, and promote the normal release of housing purchases. All localities and departments should actively maintain the smooth operation of the real estate market and better meet the reasonable housing needs of consumers.
The real estate industry should also play an important role in stabilizing the macro-economy. The real estate industry is large in scale, long in chain, and involves a wide range. It occupies a fairly high share in the national economy, fixed assets investment of the whole society, local fiscal revenue, and total loans of financial institutions, and has an important systematic impact on economic and financial stability and risk prevention. All localities should strive to stabilize land prices, house prices and expectations, strengthen the coordination of regulatory policies such as finance, land and market supervision, meet the reasonable credit demand of housing enterprises, and keep the bottom line of no systemic risks.
Hold the bottom line of the real estate industry, but also to explore new development models and find new growth points. The high-speed and large-scale construction in the past 40 years has accumulated some hidden risks, and disasters and accidents such as aging underground pipelines, urban waterlogging and gas explosion frequently occur, which urgently need to be updated and reformed. Real estate enterprises should actively participate in the transformation and upgrading of urban construction, promote the high-quality development of housing and urban and rural construction, promote their own development with new growth points, stabilize the macro-economy, and make urban and rural people live more conveniently, comfortably and better.