Cover image |The Richest Man in Xihong City" stills
Q
According to ** reports, in the past two years, coal bosses have returned to the property market with a large amount of cash in hand. For example, popular real estate projects such as COFCO Seaview No. 1 Apartment, Shanghai Joy Center, and Suhewan Center in Shanghai have all undergone equity transfers, and the receivers are energy companies in Inner Mongolia and other places. In the land auction market, there are also coal bosses in Inner Mongolia, Shanxi and other places, who frequently acquire land in Beijing, Tianjin, Chengdu and other places. Uncle Feng, why did the coal bosses spend a lot of money on **real estate, what does it mean for them to return?
Uncle Feng
A lot of coal companies, as well as other energy companies, we usually call them coal bosses and oil bosses, are actively entering the real estate market, and I think there are two reasons for this.
First, some time ago, the traditional energy industry was lucrative and cash-rich, which gave them a lot of opportunities.
As far as I know, at the level of capital, they basically have the following directions: the first generation of coal bosses led the decision-making, generally to buy properties, hotels, so actively enter the land market. The second generation of coal bosses don't like to buy these things, but do finance, play with technology, or invest in industry, foreign investment, and so on.
Recently, coal companies have accumulated a large amount of cash, and coal bosses habitually believe that buying houses, buying land, and doing real estate is more practical, visible and tangible. At least the coal bosses I came into contact with probably have this concept, and their recent moves to enter the market are consistent with the logic of past development thinking.
Second, in the current domestic market, there are relatively few investment opportunities. **, bonds, or other investments, actually, are not easy for them either.
In addition, after the previous round of twists and turns, the real estate has also given some positive support policies, so everyone's view is that real estate has been in the end. From a cyclical point of view, compared with the ** before 2019, the opportunity to enter the market to buy land is better at this time, so they think it is reasonable to sell at this time.
In terms of the national land market, coal bosses do not occupy the largest proportion of land. Although it is a strong topic from a news point of view, in fact, it has little impact on the market and is unlikely to change the development logic of the real estate market. I think that for the coal boss, this is a phased asset allocation inertia. So they are very welcome to invest in real estate, and of course this is also a habitual practice of theirs.
Q
Recently, Suzhou City has released a bombshell to save the property market: developers can reduce prices according to their own wishes**, and the department will no longer interfere with the pricing power of enterprises. Some places allow the price reduction of new houses and the lifting of pricing restrictions on developers, which is an important signal for the national property market?
Uncle Feng
I think that's a good sign. The restrictions on the commercial housing market can easily distort the decision-making and behavior of some enterprises, and will also distort market signals and disrupt the supply and demand relationship in the market. Whether it is the supply side or the consumption side, sometimes everyone will be too nervous, too pessimistic or too excited, and will lose a relatively normal market judgment.
Suzhou took the lead in doing so, which restored the development of the normal supply and demand relationship that the market should have, and in addition, the game and competition enabled the participants to have more objective and accurate signals, so that the market behavior became more normal, and at the same time protected the interests of all market participants.
It's also a signal for other cities. I think that in the future, the real estate market across the country, especially the sales category, such as the price limit for residential buildings, should be abolished, whether it is a limit on the rise or fall. If you want to limit housing prices, it will be divided into two, and there will be no restrictions on affordable housing and commercial housing.
If Suzhou's approach is aimed at commercial housing, I think this is the right policyIf it's for affordable housing, I don't think it's right again. Great respect should be given to the market, that is, the market should be returned to the market, the entrepreneur's decision should be handed over to the entrepreneur, and the consumer's decision should be handed over to the consumer. Therefore, the commercial housing market should no longer limit prices, and the affordable housing market should play a role in guaranteeing.