China's real estate market has been in the spotlight, especially in recent years, when concerns have begun to arise about a repeat of Japan's mistakes. Unlike Japan, however, China has some institutional advantages that allow it to avoid a similar predicament.
First of all, China has taken the action of guaranteeing the delivery of real estate projects, supporting real estate projects through state-owned banks to ensure the smooth progress of the projects. Behind this initiative is the close supervision and strong support of the first country. In contrast, Japan's lack of effective regulatory measures and intervention after the bursting of the bubble has led to a long-term downturn in the real estate market. China's delivery campaign has effectively avoided the overheating of the real estate market and the formation of bubbles, providing a solid foundation for the stable development of the market.
Second, China attaches great importance to the construction of affordable housing and meets the housing needs of ordinary people through the construction of affordable housing. China's affordable housing policy aims to enable the general public to buy their own housing at a reasonable price, avoiding the negative impact of high housing prices on social stability.
In contrast, Japan did not take effective measures to meet the housing demand after the bursting of the real estate bubble, which led to social problems that plagued the people. China's efforts in this area have provided a stable foundation for the development of the real estate market, and people have felt the best care with practical actions.
In addition, China has implemented a plan to transform urban villages to improve their living environment. Urban village renovation is a unique real estate policy in China, which aims to improve the living environment of old communities and improve the quality of life of residents. This kind of transformation is difficult to achieve in other countries, but China has followed through this policy and has achieved remarkable results in improving the image of the city and the happiness of its citizens.
To sum up, compared with Japan, China's real estate market has the characteristics of guaranteed delivery actions, affordable housing construction, and urban village renovation. These institutional arrangements have enabled China to prevent the property market from spiraling out of control and to protect the rights and interests of ordinary people to afford housing and improve their living environment.
Although the current real estate market is still facing challenges, these institutional advantages will make China's real estate market eventually develop in a healthier and more sustainable direction. Therefore, we do not need to worry too much about the development of the real estate market, and believe that by adhering to the reform and opening up and continuous optimization policies, China's real estate market will be on the right track and make greater contributions to social and economic development.
However, despite the many institutional advantages of China's real estate market, we should not take it lightly. While maintaining market stability, we also need to be alert to some potential risk factors.
First of all, whether the heat of the real estate market is reasonable is a question that needs serious attention. In the past few years, there has been a significant phenomenon of property speculation in some cities, and a large influx of investors has pushed up housing prices. This overheated investment boom has created instability in the market and may also lead to the formation of a housing bubble.
Therefore, we need to strengthen the supervision of the real estate market to avoid the expansion of property speculation.
Secondly, the issue of land also needs to be paid attention to. In some popular cities, the lack of land** is one of the main reasons for the soaring housing prices. In order to ensure the stability of the real estate market, it is necessary to increase the intensity of land, promote the balance between supply and demand in the real estate market, and pay attention to the balanced development between regions, so as to avoid a large amount of funds gathered in some hot cities, resulting in an imbalance in the regional economy.
In addition, the problem of the capital chain of real estate developers also needs attention. In some cases, developers may over-borrow or over-exploit in order to raise funds. This behavior not only exacerbates the instability of the market, but also may lead to the bankruptcy of some developers, bringing a ripple effect to the market. Therefore, it is necessary to strictly supervise the lending behavior of developers to avoid excessive borrowing, and at the same time strengthen the credit assessment of developers to prevent the occurrence of financial risks.
In addition, the policy regulation of the real estate market should be implemented by classification. China's real estate market has a wide range of regional differences, with different cities having different developments, demand conditions, and policy approaches. Therefore, it is necessary to take corresponding policy measures according to the actual situation in different regions. One-size-fits-all regulatory measures may have a greater impact on the market, so differentiated policies need to be developed on a case-by-case basis to achieve a stable development of the real estate market.
Finally, we should strengthen the risk prevention and response capacity of the real estate market. Despite the current market stability, we cannot rule out the occurrence of financial risks and other unexpected events. Therefore, it is necessary to improve relevant risk prevention measures, strengthen the monitoring and early warning of the real estate market, and timely discover and respond to potential risks in the market.
In short, China's real estate market, supported by institutional advantages, can avoid going down the old path of Japan.