In recent years, China's real estate market has been in a downturn. According to statistics, in the first 10 months of this year, the sales area of commercial housing fell by 22 percent year-on-year3%。At the same time, the sale of second-hand homes is becoming more and more difficult, and the number of listings in the market is rising. In the face of this situation, industry insiders said that if the real estate market cannot be reversed, the country may usher in three major changes in the next few years.
Once the trend of real estate market adjustment cannot be reversed, China may speed up the adjustment of industrial structure, turn to high-end manufacturing and high-tech fields, and reduce dependence on the real estate industry. Take Japan as an example, in the 90s of the last century, after the country's real estate bubble burst, it turned to the animation industry, new materials industry, automobile industry and other fields. Similarly, China will gradually seek new breakthroughs and develop high-end manufacturing and high-tech industries. After all, relying too much on real estate to drive economic growth is unsustainable.
Speeding up the adjustment of the industrial structure means that more funds and resources will flow to the fields of high technology and innovation. ** Industrial upgrading can be promoted by increasing investment in scientific research institutions and increasing support for high-tech enterprises. At the same time, enterprises are encouraged to increase R&D investment and improve their independent innovation capabilities. This will further promote the transformation and upgrading of China's economy and achieve sustainable development.
Recently, China's high-level management has announced that it will launch a new round of housing reform to speed up the pace of affordable housing entering the market. In the next five years, 6 million affordable housing units will be launched and piloted in 35 cities with populations of more than 3 million. This will fulfill the housing needs of different groups. Wealthy people can buy commercial housing, while low- and middle-income groups can apply to buy affordable housing. The price of affordable housing will be determined by the market, and there will be no more intervention. It is worth mentioning that the ** of affordable housing is much lower than that of nearby commercial housing, and affordable housing cannot enter the commercial housing market for trading.
The acceleration of the pace of affordable housing into the market will effectively alleviate the housing problem and solve the housing difficulties of low- and middle-income people in society. Such a policy will be conducive to improving the living environment and improving the quality of life of our residents. At the same time, it will also drive the development of related industries and promote economic growth.
Property tax reform is getting closer and closer. As early as October 2021, China's high-level announced that it would expand the scope of pilot cities for the introduction of property tax, and it is expected that the pace will be accelerated in the next few years. The purpose of the property tax is to curb the demand for investment and speculation, reduce the vacancy rate of houses, and add new taxes to the local government.
Property tax reforms will increase the cost of owning multiple properties. This helps to curb the excessive speculation of investment and property purchases and promote the healthy development of the real estate market. At the same time, the collection of property tax can effectively ensure the rational use of land resources and reduce the phenomenon of vacant houses.
Starting from 2024, the domestic real estate market will usher in three major changes: accelerating the adjustment of industrial structure, accelerating the pace of affordable housing entering the market, and accelerating the pace of property tax reform. These changes will put China's real estate industry on the track of sustainable development, promote economic transformation and upgrading, improve residents' housing conditions, and increase local fiscal revenue. We have reason to believe that through these transformations, our economy and society will usher in a better future.