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(Economic Watch) Solve the Housing Problem in Big Cities, China Releases Three Main Signals of Next Year’s Real Estate Market
China News Service, Beijing, December 18, Title: Solving the Housing Problem in Big Cities, China Releases Three Main Signs of Next Year’s Real Estate Market
Pang Wuji, reporter for the China News Agency
The Central Economic Work Day, which closed on the 18th, spoke about housing-related issues for a long time, and for the first time clearly mentioned “solving pending housing problems in large cities”. The meeting released three important signals in the real estate market next year.
“Housing is not speculation” throughout the cycle
Since the end of 2016, the Central Conference on Economic Work stated for the first time that “one should not speculate with housing.” Over the past four years, more and more people have realized that the path to real estate speculation is not viable and that China’s real estate market is entering a new era.
The meeting reiterated that it is necessary to adhere to the position that houses are used for living, not for speculation, taking measures to local conditions and adopting multiple strategies to promote the stable and healthy development of the real estate market.
Kang Junliang, general secretary of the Legal Affairs Committee of the China Real Estate Association, said in an interview with a reporter for the China News Agency that all walks of life should clearly realize that “housing and not speculation “is the most important direction and goal in real estate, and all housing policies should follow this. guide.
This is determined by the transition and logical changes of China’s economic development. In the future, the development of China’s national economy will be driven mainly by consumption. The real estate industry must give up various social resources that have been overcrowded in the past. “The real estate development cycle will change in the future, but ‘speculation-free housing’ will cross the cycle,” said Kang Junliang.
Wang Yiming, former deputy director of the State Council Development Research Center, also pointed out that the expansion of consumption should adhere to the policy of “no speculation in housing and housing” to avoid the crowding out effect of excessively high increases. Rapid housing prices and residents’ high leverage on consumption.
This year, the Chinese government has emphasized strengthening financial supervision in the real estate sector, and the introduction of new regulations on property management assets known as the “three red lines” are in line with this. Xu Xiaole, chief market analyst at the Shell Research Institute, told a reporter for the China News Agency that financial supervision of real estate will be further strengthened in the next five years, helping to control the level of leverage in the purposes of residential and corporate.
Solving outstanding housing problems in large cities
This year’s meeting placed special emphasis on solving the most important housing problems in large cities.
In 2020, in response to the epidemic, foreign central banks have released unprecedented amounts of water. The world’s ten largest cities have seen a rapid rise in house prices and house prices in several cities hit a record high.
Xu Xiaole pointed out that in China, the contradiction between supply and demand for housing in some large cities like Shenzhen has further intensified and house prices have risen significantly. However, the excessively rapid rise in house prices will somewhat hamper the influx of population and will not favor urban development. Therefore, the meeting clearly made “solving major housing problems in big cities” an important task in the coming year.
Gu Yunchang, president of the National Federation of Real Estate Chambers of Commerce, also said that, in fact, the current real estate problems in China mainly lie in large cities, such as excessively high house prices or fast house prices, residents they cannot afford them and the rental market is underdeveloped.
Yan Yuejin, research director of the E-House Research Institute’s Think Tank Center, also noted that this year, large cities such as Shenzhen, Shanghai and other large cities have been rushing to search for housing.
He believes that next year, there may be three major changes in real estate policies in big cities where the contradiction between supply and demand in the real estate market is obvious. The first is to continue to suppress the demand for real estate speculation, such as the behavior of “buying houses on behalf of others”, discussed earlier in Shenzhen. The second is to increase the supply of land, especially to increase the supply of purely residential land. The third is to continue developing the leasing market.
Make up for deficiencies in rental housing
This conference will be dedicated to the development of the housing rental market as an important way to solve the housing problem in large cities.
With China’s rapid urbanization, large numbers of new citizens and youth are pouring into cities. They are the driving force behind urban development. However, high house prices in cities, especially large cities, have become a major obstacle to “housing.”
Li Yujia, chief researcher at the Guangdong Province Housing Policy Research Center, noted that in large cities, the housing problem of new citizens is the most prominent. Many people do not qualify to apply for social housing (housing is mainly for people with low income or talents) and cannot afford to buy it. Commercial housing. Therefore, the market offers some small-sized and low-cost rental housing, so that new citizens can take root in the city, which is of great importance to create a new internal circulation pattern and expand the strategic base of domestic demand.
What are the development priorities of the future leasing market?
Xu Xiaole pointed out that the construction of affordable rental housing is the focus. Policy-based rental housing is based on the principle of “who invests is responsible” and, by using political grants to fully mobilize market forces to participate actively, you can more effectively increase the supply of rental housing.
The meeting again mentioned installment purchase rights. Yan Yuejin said that it is mainly about the same rights of settlement, registration and medical treatment.
Li Yujia also said that due to the shortage of high-quality public services, the same rental and purchase rights will be gradually realized in the future. For example, in terms of education, the government has increased public education and improved the quality of private and public schools.
In addition, the meeting also mentioned that it will provide greater land security for the rental market, including the provision of traditional land, collective construction land and idle land. Analysis believes that these are conducive to increasing the supply of rental housing, stabilizing rent levels, and truly solving the housing problems of new citizens. (End up)
