In the first three quarters of 2023, the national land auction revenue was a little more than 3 trillion yuan, and it fell by 20% from a very low base last year. With this amount of income, how to make the local government solve its difficulties, not to mention reinvesting in new infrastructure, it is difficult to cover even the interest on old debts. also deserves it, who let the previous years take advantage of the high income to spend money, of course, the motivation to spend money is full, because there are benefits.
There is also a new situation this year, the problem of limited auction land prices that were taken for fear of housing prices is now gradually liberalized, but the effect is geometric, each has its own merits.
Whether the land price is high or low depends mainly on the expectation of future sales. In the first- and second-tier high-quality lots, the plots are still being sold, and there are often rush auctions and premiums. The third- and fourth-tier cities are almost unable to shoot, and the high-quality land plots are gone, and they directly take over through the financing platform, which is equivalent to increasing the hidden debt, but even if it is filmed, there is no money to pay, and there is no money to develop.
Therefore, the price limit can not be expected to play a role at all, and the core problem is that the house cannot be sold. At the beginning, various policies suppressed, housing prices are still soaring, and now with various policy support, real estate is still half-dead, which is a reason. The policy is always reversed.
The real estate dilemma is still unsolved, and half of the more than 400 trillion real estate assets are debt, which can only be slowly and painfully deleveraged.