Chapter 603 New Real Estate Policy
Since the reform and opening up, the development and changes of the domestic real estate market have roughly experienced four periods: initial formation, real estate overheating, market adjustment, and cultivating new economic growth points.
Before the reform and opening up, there was almost no real estate market in my country, no real estate industry, only the construction industry. Urban housing was mainly invested and built by the state. The built houses are not sold, but mainly allocated through the units where the employees are located, according to the length of service, position, education, etc. For the allocated housing, only a symbolic and almost free low rent is charged.
This housing system is usually summarized as a welfare housing system in which the state undertakes housing investment and construction, and allocates it to employees in kind and uses it almost free of charge. Under this housing system, housing construction investment is gone without return, cannot be circulated and turned over, and the low rent collected is not enough to pay for the daily maintenance and management costs of housing. Housing construction and maintenance and management have become a heavy burden for the country, and have also suppressed personal investment in housing. The problem of urban housing shortage has become increasingly prominent.
After the reform and opening up, the top leaders proposed whether there could be a wider way to solve the housing problem, such as allowing private housing construction or private construction with public assistance, installment payment, mobilizing the money in the hands of individuals, and the state solving the materials. There is great potential in this regard. This idea broke the traditional view of public ownership and welfare system of housing, and drew the basic blueprint of the new housing system.
Two years later, the policy of implementing housing commercialization was formally proposed, allowing private individuals to build, buy and own their own houses. Not only new houses can be sold, but existing houses can also be sold.
From the second half of 1992 to the first half of 1993, many regions in my country suddenly set off a real estate boom, the number of real estate development companies increased sharply, and real estate development investment grew rapidly. The real estate market dominated by land speculation and project speculation was extremely active. In some areas, mainly Hainan and Beihai, Guangxi, real estate development was overheated, forming a serious real estate bubble.
From the situation in Hainan, by the middle of 1993, there were more than 10,000 real estate development companies. Commercial housing is very popular. Except for a small number of commercial housing built in remote areas, inconvenient transportation or a few county towns, the rest of the completed commercial housing has been sold out. There is also a phenomenon of paying pre-purchase deposits for purchasing commercial housing. Hainan's real estate market has heated up sharply, and real estate prices have risen steadily.
Overheated real estate investment not only exacerbated the contradiction between supply and demand of building materials such as steel, cement, and wood, and led to a sharp rise in their prices, but also squeezed out too much construction funds, resulting in insufficient funds for some national key construction projects. Mainland funds flowed to the real estate market in coastal areas, and real estate prices in coastal areas soared. The rising real estate prices added to the inflow of external funds, which ultimately led to a serious imbalance in the development of the national economy.
Many real estate developers entered Hainan, not focusing on social needs but on speculation, attempting to make huge profits by selling land, selling projects, and speculating on pre-sale properties. When the speculation chain broke, what was left was capital sedimentation, debt entanglement, project suspension, and idle land.
Up to now,
the four state-owned commercial banks of Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and Construction Bank of China have accumulated more than 43 billion yuan in real estate in Hainan. If we add other financial institutions of non-state-owned commercial banks, investments of other enterprises, advance payments of construction enterprises, material payments, and prepaid purchase payments, etc., it is estimated that the funds occupied are more than 80 billion yuan.
However, since 1996, the economy has changed from shortage to relative surplus, products cannot be sold, enterprises have stopped production, workers have been laid off, and last year, the Asian financial crisis hit. As the entire economy experienced deflation, the real estate market entered a low ebb.
So starting this year, with the institutional reform of cultivating the residential industry into a new economic growth point, and the introduction and implementation of various policies and measures, the domestic real estate market and real estate industry have entered a new development period. The physical distribution of housing in cities and towns across the country has been stopped, and various preferential policies such as tax and fee reductions to revitalize the secondary housing market have been introduced. Housing construction has accelerated, housing finance has developed rapidly, and the secondary housing market has become active.
In April this year, after the People's Bank of China issued the "Notice on Increasing Housing Credit Investment and Supporting Housing Construction and Consumption", in order to promote the reform of the urban housing system and cultivate the residential industry into a new economic growth point, it decided to further increase housing credit investment and support housing construction and consumption. As long as the borrower meets the loan conditions, commercial banks can lend housing loans within the requirements of the asset-liability ratio.
In order to cooperate with the national housing reform, effectively start the real estate market, and actively cultivate new economic growth points, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Construction have also issued many new policies to encourage individuals to exchange for housing and provide tax incentives.
In this way, in the eyes of real estate developers, now is the best opportunity to make money. Banks provide dual loan assistance to developers and consumers. Under this circumstance, it is of course the easiest to make money, especially in places like Beijing and Shanghai, where people's consumption concepts are more advanced and it is easy to accept this economic model of overdrawing the future, which is naturally the best choice for development.
However, with Fan Wubing's actions, tens of billions of funds are about to pour into Beijing. How can we not make people feel uneasy? In addition, the current limited-time opening policy is obviously to prevent the phenomenon of hoarding and speculation of land, which will cause a huge change in the real estate market in Beijing.
Although everyone has not yet seen the development trend of the real estate industry in the future, after the big crocodile Fan's Investment Group came in, it was obvious that it would not have a good life of its own. How can real estate companies that still rely on loans and inventory overcome this? Fan Investment Group with its own funds?
On the afternoon when the rumors about the new property market policy leaked out, Boss Zhu raised this matter at an office meeting of the State Council. He believed that in line with the principle of not wasting resources and preventing excessive land speculation that would lead to excessive land development costs, the consideration of limited time development was still It is feasible, but the housing reform team must come up with a more specific plan so that it can be submitted to the National People's Congress for review and approval.
If it was a rumor before, then now that Boss Zhu has raised this issue, it is equivalent to preparation for action. Things in the country are like this. If the leader does not express his position, this matter may never be promoted, but if If leaders start to care about one thing, the efficiency of each department will be very efficient.
Of course, when this happened, even Fan Heng, who was far away in Jiangnan Province, immediately called his son Fan Wubing to ask what happened, "You and Boss Zhu were discussing the real estate policy one after another. A major decision has been made, isn’t there some connection between it?”
"The relationship involved in this matter is relatively complicated, but it is mainly due to the impact of the Huo Tiancheng case." Fan Wubing did not deny the important role he played in it. He explained it in detail to his father Fan Heng. Fan, "Huo Tiancheng will undoubtedly die according to the law, but the real estate developers in the capital seem to feel the atmosphere of sadness about the fate of the rich in the real estate industry, so they want to exert pressure to affect judicial justice. Therefore, on the premise of not being willing to use excessive administrative oppression. Next, I’m just doing a show with Boss Zhu.”
"I knew there was something fishy here, otherwise why would you two just be in harmony with each other?" Fan Heng thought to himself, and it was indeed the case, but this matter had nothing to do with him. The housing reform work in Jiangnan Province It's just the beginning. If there are relatively complete policy constraints, I believe that the work here will avoid a lot of detours. In particular, he is also worried that real estate developers are too dark-minded, resulting in excessively high housing prices and that the common people cannot afford it. rise, leading to greater social conflicts.
For now, whether it is Fan Wubing's large-scale entry into Beijing to get involved in the real estate industry, or Boss Zhu's intention to open a limited-time business, they are promoting the formalization and rationalization of the real estate development industry, which can curb the excessive development costs caused by excessive land speculation. We should try our best to avoid another incident similar to the Hainan real estate bubble.
However, the cooperation between Fan Wubing and Boss Zhu had a miraculous effect. The real estate developer alliance in the capital immediately fell apart. At this time, no one could care about Huo Tiancheng anymore, and everyone began to contact their own Supporters behind the scenes would like to know the origin of this new real estate policy. Will Boss Zhu pass this bill in the near future?
At the same time, there are also people who are inquiring about the trends of Fan Investment Group to see if Fan Wubing is really going to enter the real estate market in the capital, or is his senior executives making vague predictions there? After all, according to Fan Wubing's previous attitude, he seemed to be somewhat disdainful of the real estate industry. At this time, he suddenly made a 180-degree turn, and his change in mentality couldn't help but make people suspicious.
However, it seems that Fan Wubing has not made any public appearances, nor has he released any private opinions to the media. It seems that the rumor that has stirred up the national real estate industry is not something that was released by his own company.
When Fan Wubing answered the questions of several senior executives at the headquarters, he told them clearly, "Housing reform is imperative, and a great era of real estate development is coming. I was unwilling to get involved in this industry before. The reason is that the time is not ripe, but now, it is obvious that if we participate, it will be more conducive to regulating the domestic real estate market and controlling the housing prices in Shanghai or Beijing from excessive rise. It is of considerable reference significance to the entire country.”
"What's the point of doing this?" someone expressed confusion.
"Suppressing the excessive rise in housing prices is conducive to protecting people's livelihood!" Fan Wubing replied meaningfully.
He has a chess game in his mind. He wants to support his father Fan Heng to continue to rise to the top. If he can effectively control the national housing prices, he can also share the worries of his father who has entered the top management in the future. This is a typical plan for a rainy day.