In the long run, we will provide rent-all-type and allotment-type affordable housing at a lower level to solve the housing difficulties of wage earners and meet rigid needsThe demand of high-income groups will be handed over to the market to meet the demand, and real estate companies will no longer need to be restricted by area and quality, and focus on creating high-end improvement products, and the pattern of the real estate industry may undergo major changes.
Recently, the first economic work conference emphasized the need to accelerate the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the transformation of urban villages. Since the beginning of this year, the Politburo meeting and the financial work conference have made important arrangements for the planning and construction of affordable housing. China Development Bank has thoroughly implemented the decision-making and deployment, and recently realized the first loan of 10 million yuan for the Shuanglong Xinju affordable housing project in Fuzhou City, which marks the successful landing of the country's first placement affordable housing development loan.
Why start a new round of affordable housing planning and construction?What is the important function of affordable housing construction at an important juncture in the transformation of China's real estate market?
Increase the construction of affordable housing
Promote a virtuous cycle of real estate
At present, China's real estate market is facing the problem of total oversupply, but structural supply and demand mismatch.
Specifically, due to factors such as the peak of the total population and the slowdown in the growth rate of urbanization, the demand for housing will continue to decline gradually, and the real estate market is still in the de-escalation cycle, but the existing housing structure has not yet matched the multi-level housing needs of residents.
From the perspective of housing demand, improved demand is gradually replacing rigid demand, buyers have put forward higher requirements for the area and quality of housing, and China's housing supply is dominated by small and medium-sized households, and the supply of improved housing is relatively insufficient.
From a regional point of view, as the development of urbanization enters the middle and late stages, the siphon effect of economically developed areas and urban agglomerations on the population is becoming more and more obvious, resulting in an oversupply of housing in third- and fourth-tier cities, and the large-scale inflow of population into the areas is still facing structural shortage. In addition, due to the high housing prices in large cities and the low proportion of affordable housing, the housing cost of young people is large.
Increasing the construction of affordable housing can solve many problems faced by China's real estate market from the supply side.
1. Solve the housing difficulties of some groups and reduce the housing cost of residents.
After the large-scale construction of allotment-type affordable housing, China's existing housing security system has shifted to mainly allocating rent in kind, and mainly for low-income groups, while the coverage of "sandwich layer" groups such as new citizens and young people is obviously insufficient. The primary purpose of affordable housing construction is to solve the housing problem of this group.
In August this year, the "Guiding Opinions on Planning and Construction of Affordable Housing" (referred to as "Document No. 14") deliberated and passed by the executive meeting clearly stated that the first is to focus on the wage and salary income groups with housing difficulties and low incomes, as well as the introduction of talents and other groups needed by the city, and increase the construction and supply of affordable housing;The second is to support large cities with a permanent population of more than 3 million in urban areas to take the lead in exploring and putting into practice.
On December 20, the person in charge of the relevant department of the Ministry of Housing and Urban-Rural Development said that the start of a new round of affordable housing planning and construction is because the "two-wheel drive" of commercial housing and affordable housing has a long and short situation, and the construction of affordable housing is relatively lagging behind, unable to meet demand, and there are obvious shortcomings. Especially in first- and second-tier cities, due to high housing prices, some wage earners cannot afford to buy commercial housing. The planning and construction of affordable housing is a major reform to adapt to the new requirements of Chinese-style modernization, improve the housing system and the first system, and reconstruct the relationship between the market and security under the new situation.
2. Accelerate destocking and promote the return of the real estate market to a virtuous cycle.
At present, the overall oversupply of real estate in China, many cities have greater inventory pressure, and the rigid demand is slow to enter the market.
Therefore, Circular No. 14 clearly states that "cities with large inventory of commercial housing can rebuild or purchase existing commercial housing for use as affordable housing, revitalize idle land and houses, and avoid waste caused by duplicate construction." ”
By acquiring the stock of housing in the market to reconstruct affordable housing, on the one hand, it can speed up the pace of affordable housing, on the other hand, it can also effectively remove market inventory, reduce the financial pressure of real estate enterprises, and promote the recovery of the commercial housing market.
3. Solve the basic needs, and the market specializes in improving the demand.
With the continuous implementation of the allocation of affordable housing policies, the restrictive policies on the commercial housing market are expected to be reduced in the future, the relationship between the market and security will be gradually straightened out, and the commercial housing can gradually return to the commodity attributes.
In the long run, we will provide rent-all-type and allotment-type affordable housing at a lower level to solve the housing difficulties of wage earners and meet rigid needsThe demand of high-income groups will be handed over to the market to meet the demand, and real estate companies will no longer need to be restricted by area and quality, and focus on creating high-end improvement products, and the pattern of the real estate industry may undergo major changes.
Look at it in the long run
The construction of affordable housing is expected to activate the internal circulation
1. Reduce the cost of housing and boost consumption.
Since the real estate marketization, China's housing prices have gone through many rounds of **, the leverage ratio of residents has increased rapidly, and the impact of high housing prices on consumption has gradually shifted from the wealth effect to the crowding out effect.
Under the pressure of high leverage and high housing prices, the squeezing effect of mortgage expenditure on consumption began to appear, and the proportion of China's total retail sales of consumer goods in GDP and the proportion of consumption in the personal disposable income of urban residents reached a peak in 2016 and has continued to decline since then.
Adjusting the balance of the real estate market through the construction of affordable housing will help improve the consumption capacity and enthusiasm of residents.
2. Reduce the manufacturing cost of small and medium-sized enterprises.
In addition to reducing the cost of housing for residents, the scope of affordable housing has also been expanded to micro, small and medium-sized enterprises, and the construction of "rent-only, not sale-only" industrial affordable housing has been used to solve the problems of insufficient funds for small, medium and micro enterprises.
Guangdong Province, as a gathering place for micro, small and medium-sized enterprises, is the first area to implement industrial affordable housing, expanding industrial space through low rents**, effectively reducing manufacturing costs, and also helping to attract innovative enterprises to settle in, thereby stabilizing and expanding private investment, and its mature experience is expected to be extended to other regions in the future.
Globally, developed countries, including Singapore, Germany, and Japan, have robust housing security systems. The construction of affordable housing is of great significance for promoting urban development, improving the quality of life of residents, achieving social equity, and maintaining social stability, and is an important measure to promote sustainable urban development. Affordable housing with rational planning policies, scientific construction, and simultaneous rental and sales can not only meet the housing needs of different groups, but also promote urban economic development and social harmony and stability.