Three key tasks to lead the property market in 2024

Mondo Social Updated on 2024-01-29

**: China News Network.

**December 13 (Zhongxin Financial Reporter Zuo Yukun) **Economic Work Conference was held in Beijing from December 11 to 12. Among them, for the expression of real estate, industry analysts believe that on the basis of emphasizing the resolution of real estate risks, there are three points worth paying attention to, such as strengthening the construction of the "three major projects" and accelerating the construction of a new model of real estate development.

What do these three points correspond to?What impact will it have on the property market next year?

The first is to prevent and resolve risks in the real estate sector

The meeting pointed out that it is necessary to actively and prudently resolve real estate risks, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, and promote the steady and healthy development of the real estate market.

This is also considered to be the key direction of real estate policy in 2024. Yan Yuejin, research director of the E-House Research Institute, said: "The work of supporting reasonable housing consumption demand needs to be continued, but all localities should take risk mitigation as the core work from the level of understanding and work focus. ”

What should be done to mitigate the risk?Chen Wenjing, director of market research at the China Index Research Institute, pointed out that the current real estate risks are mainly reflected in the debt resolution of real estate enterprises and the delivery of projects, and it is expected that the financial support policies for enterprises will continue to be refined in 2024.

Since the end of October, after the first financial work conference emphasized that "the reasonable financing needs of real estate enterprises with different ownership systems are met equally", many ministries and commissions have held enterprise forums to implement relevant measures, and a number of commercial banks have held enterprise symposiums, proposing to increase support in development loans, mortgage loans, business loans and bond underwriting. According to the monitoring of the China Index Research Institute, in November 2023, the total bond financing of real estate enterprises was 412800 million yuan, an increase of 49 percent month-on-month4%, the year-on-year decline narrowed to 26%, the policy effect is beginning to appear. Next, the financial support policy for enterprises is expected to be further effective.

On the basis of increasing financing support for real estate enterprises, it is expected that efforts will be made to enhance the credit level of private enterprises, including further exploring effective credit enhancement measures, enriching credit protection tools, and appropriately expanding the scope of application of private enterprise bond financing tools. At the same time, the supervision of real estate enterprise financing and pre-sale funds will be considered as a whole, and more flexible solutions will be explored, so that the financial effect can be greater under the premise of ensuring safety. Zhang Bo, president of 58 Anjuke Research Institute, said.

Chen Wenjing also mentioned that to resolve the risk of real estate enterprises, it is still necessary to promote the recovery of self-hematopoiesis, and the substantial repair of market sales is the key to improving the capital of enterprises, and the improvement of the sales market also requires demand-side policies to continue to support the bottom line.

The second is the construction of the "three major projects".

The meeting pointed out that the "three major projects" such as the construction of affordable housing, the construction of public infrastructure for "ordinary and emergency purposes", and the transformation of urban villages should be accelerated.

The three major projects are not only the starting point of the new model, but also the focus of real estate stability and progress. This focuses on the long-term healthy operation and stable growth of real estate, and strives to solve long-term problems such as structural problems, mismatch between supply and demand, and demand faults. Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Urban Planning Institute, said that in essence, the "three major projects" of the housing and construction system in the new era are all making a fuss about the supply-side reform to match demand and combine it with the expansion of domestic demand for real estate.

-- Construction of affordable housing

Affordable housing solves the distribution security needs of households without household registration, talent groups, and wage earners, and solves the problem of fault in the demand for commercial housing. Li Yujia said.

Chen Wenjing believes that affordable housing "guarantees basic needs", and market-oriented commercial housing meets the needs of multi-level housing. New housing projects with high quality, good location and good service still have market potential, which also provides new business ideas for development enterprises.

Zhang Bo pointed out that promoting the new model of affordable housing development will be an important measure in the next round of real estate cycle. Next year, more cities will speed up the pace of promoting affordable rental housing, and make diversified and high-quality rental housing continue to be on the market through multi-channel co-construction, so as to better realize the basic needs of the first guarantee, the market to meet the needs of multi-level housing, and establish a housing system that combines rental and purchase.

-- The construction of public infrastructure for both peacetime and emergency purposes

Li Yujia introduced that the "peacetime and emergency" public infrastructure solves the demand for supporting facilities for residential and life safety in the new era.

In Chen Wenjing's view, the "dual-use of ordinary and emergency" or combined with inefficient and idle infrastructure, and the reuse of resources according to local conditions, will also have a positive effect on real estate investment.

-- Transformation of urban villages

The transformation of urban villages solves the housing needs of new citizens, young people, and migrants, mainly low-cost, job-housing balanced. Li Yujia introduced.

In 2024, the transformation of urban villages will enter a new stage, and its actual pull on real estate sales and investment may be limited, but it will be crucial to the expected impact. Chen Wenjing mentioned that the implementation rules for the transformation of urban villages are expected to be introduced one after another, and a number of projects are expected to enter the implementation stage to support the stabilization of real estate at both ends of supply and demand.

Zhang Bo pointed out that the transformation of urban villages is an important measure to improve the living quality of large and medium-sized cities, and it is also an important measure for housing improvement, which can promote high-quality urban development by eliminating safety risks, improving the living environment, and promoting industrial transformation and upgrading.

The third is to accelerate the construction of a new model of real estate development

The meeting pointed out that the relevant basic systems should be improved and the construction of a new model of real estate development should be accelerated.

In Yan Yuejin's view, this statement is consistent with the "first establishment and then breaking" mentioned in the previous Politburo meeting and this meeting. In order to establish a new real estate development model, it must be "established first" rather than "broken first". The mention of improving the relevant basic systems also shows that in terms of "establishing first and then breaking", some basic systems are gradually being explored.

Yan Yuejin believes that the relevant system may be reflected in the words "people's real estate money", and it is expected that some new reform work will be launched in 2024, especially around "people's real estate money" There will be a series of work.

In the view of Zou Linhua, head of the housing big data project team of the Chinese Academy of Social Sciences, the above three tasks are also interrelated: "The construction of the three major projects and the acceleration of the construction of a new model of real estate development are conducive to enhancing the long-term confidence of the market, which is also conducive to resolving real estate risks." (ENDS).

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