As a pillar industry of China's economy, real estate has always attracted much attention from the society. With the continuous advancement of urbanization and demographic changes, the real estate market has also undergone earth-shaking changes. However, as time goes on, people begin to question whether there is a surplus of houses, especially as tens of millions of new commercial houses continue to enter the market. This article will analyze the current situation of housing surplus from multiple perspectives, and reveal the deep-seated reasons behind developers' building behavior.
The total number of houses in China has reached a staggering 600 million, and even taking into account the self-built houses, schools, factories and other buildings included in them, it is still impossible to deny the fact that there is a surplus of houses. However, developers are still building buildings on a large scale, and a large number of new commercial houses are put on the market every year. What is the reason why developers are so "persistent" to continue to build buildings?
(1) Unbalanced distribution in the context of real estate financialization
In addition to being a living space, real estate has taken on the attributes of financial investment in today's society. Some affluent people hoard property as an investment vehicle rather than actually use it for living. This has led to a large stock** being hoarded and failing to flow into the market. As a result, developers need to keep building new homes to meet the needs of families who are just in need and improving their homes.
Expanding: In China, real estate is often seen as a safe and secure investment with a high potential for value preservation and appreciation. With the acceleration of urbanization and the change of people's financial management concepts, more and more people choose to invest their money in the real estate market. This speculation has led to an unreasonable distribution in the market, with some investors hoarding properties in large quantities, resulting in a decrease in the number of houses that are actually available for habitation. Therefore, in order to meet the real demand for home purchases, developers have to continue to build new commercial houses to fill the demand gap in the market.
(2) The process of urbanization drives the demand for housing purchases
Although China's urbanization rate has reached a certain level, there is still a gap compared with developed countries. In order to promote urbanization and attract more rural residents to buy houses in cities, developers need to continue to develop new properties to meet the housing needs of different groups. Only when the level of urbanization reaches a certain level, will the demand of the real estate market gradually become balanced.
Expansion: Urbanization is an inevitable trend in the process of modernization, and it is also an indispensable and important engine for national economic development. With the increase in urban population and the inflow of rural population, the demand for urban housing is increasing, which requires developers to continuously invest in construction and increase housing**. In addition, in the process of urbanization, the development speed and demand characteristics of different regions are different, and developers need to adjust their development strategies according to the specific situation to meet the diverse needs of urbanization development.
(3) Meet the needs of improved home-buying families
With the improvement of people's economic conditions and the change of family structure, some home-buying families will shift from the original small house to a larger area of housing to improve the comfort and quality of living. In addition, some improvement families will also choose to replace the new house with a more ideal one because they are not satisfied with the design of the old house. Therefore, developers need to adjust their development strategies in a timely manner and launch new housing products that meet market demand.
Expansion: The family is the basic unit of society, and the purchase of a house is the foundation of the family's future life. With the improvement of residents' income level and the pursuit of quality of life, some families will choose to improve their living environment and replace them with new houses. This increase in demand for improved home purchases has driven the continuous development and renewal of the real estate market. As a result, developers need to innovate to meet the increasingly diverse needs of homebuyers.
(4) The pressure of building to maintain the survival of enterprises
The survival and development of developers is inseparable from the continuous promotion and sale of real estate projects. Real estate development requires a large amount of capital investment, and in the case of poor sales, the capital chain may face a break. Therefore, in order to ensure the survival and development of enterprises, developers need to continue to build buildings to improve the speed of project progress and market competitiveness.
Expansion: As a player in the real estate industry, developers need to constantly innovate and evolve in the market competition to stay competitive. Real estate development projects require a lot of capital and human resources to ensure the stability of sales revenue while ensuring the progress of the project. Therefore, developers need to respond carefully to market changes and flexibly adjust their strategies to adapt to the changing market environment.
As an important pillar of China's economy, the real estate market not only carries the living needs of residents, but also reflects the country's economic development level. In the face of the surplus phenomenon in the real estate market, the construction of buildings by developers is not simply due to overdevelopment, but is affected by multiple factors. Only on the basis of in-depth analysis of market demand, policy orientation and enterprise survival pressure can the healthy development of the real estate market be realized. Therefore, the regulation and development of the real estate market should comprehensively consider all factors to promote market balance and sustainable development.