The property market was stimulated unsuccessfully, and experts proposed a comprehensive solution, which was unanimously supported by the people
Introductory. Entering 2023, the national real estate market is facing a series of favorable policies. However, the effect of these policies is not obvious, the recovery of the real estate market is still slow, the transaction volume of the new and second-hand housing market is sluggish, and the area of commercial housing for sale continues to expand. At the same time, high housing prices have exceeded residents' purchasing power, and many households' incomes have also been reduced due to the pandemic, further weakening their ability to buy homes. Faced with this situation, Huang Qifan, a professor at Fudan University and former mayor of Chongqing, proposed one"Reassurance", that is, the abolition of purchase and loan restrictions, the implementation of differentiated real estate taxes, so that the real estate market returns to free competition. This plan has received unanimous support from the general public. This article examines Huang Qifan's solution and analyzes its feasibility and impact.
Huang Qifan's"Eventually"Solution.
At present, the effect of favorable policies for the property market is not obvious, and the recovery of the property market is hindered. Huang Qifan suggested that the policy of restricting purchases and loans should be completely abolished and differentiated real estate tax should be levied. This suggestion has been endorsed by the general public, who believe that free competition can motivate property developers to cut prices** and home buyers are free to choose to buy in any city. In addition, differentiated property taxes can curb speculative demand for real estate in different cities. However, a differentiated, market-based property tax may not be enough, and upward protection for low-income families is also needed.
Under the premise that the real estate market is fully commercialized, developers can absorb inventory by cutting prices**. After the removal of policies such as purchase restrictions, sales restrictions, and price limits, restrictions on home buyers will be greatly reduced, and the transaction volume of new and second-hand housing markets is expected to increase. This will contribute to the continued development of the real estate market.
Differentiated property taxes can reduce the demand for real estate speculation and allow the real estate market to allocate resources more rationally. Depending on the specifics of each city, a property tax is levied on households with more than two properties to increase the cost of owning a property. In this way, the demand for real estate speculation will be reduced, and urban real estate resources can be allocated more reasonably.
The feasibility and impact of Huang Qifan's proposal.
Huang's proposal was unanimously accepted by the public, mainly because the current real estate market has completely lost its marketing ability. Cancel restrictions such as purchase restrictions, sales restrictions, and price limits, so that the property market can return to free competition, developers can reduce prices** to inventory, and buyers can freely choose to buy. In this way, the real estate market will be active and promote the recovery of the real estate market.
The introduction of a differentiated property tax can reduce speculative demand and curb excessive housing prices**. Depending on the actual situation in each city, a higher tax is levied on households with multiple properties. This will increase the cost of the property, reduce the incentive for speculation in the property, and help keep the property stable.
However, simply introducing a market-based and differentiated property tax may not be enough. The problem of low-income families still having difficulty in buying a house. In order to meet the housing needs of low-income families, local governments should increase the construction of affordable housing. The recently launched housing reform package will provide 6 million affordable housing units, which is more affordable than surrounding commercial housing. This will help meet the demand for affordable housing while digesting the stock of housing accumulated by property developers.
Personal reflections and conclusions.
Huang Qifan's"Eventually"The solution sounds attractive in theory, but its implementation can come with some challenges. First of all, the abolition of purchase restrictions and loan restrictions, and the introduction of differentiated real estate taxes, require a reasonable transition period and support policies to avoid market shocks and excessive volatility. Secondly, the construction of affordable housing requires a lot of investment in capital and land resources, and the local government must assume the main responsibility. At the same time, how to reasonably allocate the proportion of affordable housing and commercial housing is also a difficult problem.
For property developers and home buyers, the implementation of Huang's recommendations will bring them greater freedom of choice and a more competitive market environment. However, for speculators, the introduction of a differentiated property tax will increase the cost of real estate, discourage speculation, and reduce speculative profit margins.
To sum up, Huang Qifan's solution can solve the current problems faced by the real estate market to a certain extent. However, its implementation requires the joint efforts of all parties and the support of supporting measures. Only by working together can it be possible to achieve a sustainable development and virtuous cycle of the property market.