What will be the direction of the property market after 2024? Li Ka shing had already predicted that

Mondo Social Updated on 2024-03-05

The real estate market has always been one of the important pillars of China's economic development. However, with the continuous increase in housing prices in recent years, people's attention to the real estate market has gradually increased. At the same time, it has also begun to increase the regulation of the real estate market to curb excessively fast housing prices and reduce the risk of real estate bubbles.

An important regulatory goal is to reduce the leverage ratio of real estate enterprises to reduce the financial risks of real estate enterprises. Excessive leverage means that real estate companies are overly indebted and may face the risk of bankruptcy if the industry encounters difficulties. Therefore, a series of policy measures have been introduced to limit the financing channels of real estate enterprises, limit the scale of land investment, and restrict the sales of the property market. The introduction of these policies is undoubtedly a huge blow to real estate companies, so that they have to face the reality, accelerate transformation and upgrading, and reduce debt risks.

As a first-class livelihood project, affordable housing is mainly for low-income groups and aims to solve their basic housing needs. The construction of affordable housing can not only meet the basic housing needs of low-income groups, but also stimulate the development of related industries and promote economic growth. Therefore, a series of policies have been introduced to increase investment and support for affordable housing to ensure the smooth progress of affordable housing projects.

From a policy point of view, the future real estate market will present a pattern dominated by affordable housing. **On the one hand, by strengthening support for affordable housing projects, developers are encouraged to invest in construction, and at the same time, restrictions on commercial housing are also increased. With the gradual increase of affordable housing, the corresponding decrease in commercial housing, the production of commercial housing may also be affected to a certain extent.

For the average person, there will be some changes in the real estate market in the future. As the construction of affordable housing will become the dominant force in the market, ordinary houses in the traditional sense may face certain downward pressure on their value.

Therefore, it will become more important for home buyers to hold a good house with inheritance value. Such a house can not only meet one's own living needs, but also serve as a means of preserving and increasing the value of assets.

To sum up, the adjustment of the real estate market is mainly affected by policies. **Increase the promotion of the construction of affordable housing, so as to realize the development concept of the market to the market and the guarantee to the security. In the future, the real estate market will be dominated by affordable housing, and the restrictions on commercial housing will be gradually lifted. For ordinary people, it will become even more important to hold a good house with inheritance value. The construction of affordable housing will meet basic housing needs and promote economic development. However, it is important to note that changes in the real estate market are long-term, complex processes, and any investment decision needs to be treated with caution to avoid unnecessary risks.

* Concerns about the over-leverage of real estate companies have prompted the introduction of a series of regulatory measures. Among them, the first to increase the promotion of the construction of affordable housing, aiming to achieve the dual-track development of "the market to the market, the guarantee to the security", to promote the adjustment of the real estate market has injected new impetus.

The future development trend of the real estate market will be dominated by affordable housing, and the restrictions on commercial housing will be gradually removed. This change has brought new ideas for ordinary people to invest in real estate. In the past, ordinary people often preferred to buy general commercial housing as an investment, hoping to obtain income through real estate appreciation. However, under the rise of the affordable housing market and the restrictions on the commercial housing market, the traditional investment concept needs to be re-examined.

Different from the investment philosophy of pursuing short-term appreciation in the past, ordinary people should consider holding those good houses with inheritance value in the future. These homes may have unique geographical advantages, such as proximity to educational resources, medical facilities, or transportation hubs.

Or old buildings with historical and cultural value, such as traditional courtyard houses, shikumen, etc. These properties may not appreciate significantly in the short term, but in the long term, their value is expected to gradually become apparent as the city grows and the population moves. The value of an ordinary house may decline due to market regulation.

The construction of affordable housing is not only to meet basic housing needs, it also plays an important role in promoting economic development. The implementation of the affordable housing project will drive the development of a series of related industries such as engineering construction, building materials and personnel employment. In addition, the activity of the affordable housing market will also stimulate consumer demand and further promote economic growth. Therefore, increasing the promotion of affordable housing construction is not only conducive to solving the housing problem of low-income groups, but also conducive to improving the sustainable development of economy and society.

As the shortage of commercial housing in the past may be alleviated, buyers will have more options. For people with more urgent housing needs, they can consider applying for affordable housing to obtain more affordable housing. For the middle class who want to buy a house, they can pay more attention to unique real estate investment opportunities, and look for those properties with distinctive and collectible value to achieve the goal of wealth preservation and appreciation.

In short, the adjustment of the real estate market is mainly affected by policy control, and the concern about the excessive leverage ratio of real estate enterprises is particularly critical. **Increasing the promotion of affordable housing construction will become the leading part of the real estate market in the future. The average person can adjust their investment strategy and consider holding a good house with inheritance value, while the value of a regular house may decrease. The construction of affordable housing will meet the basic housing needs and promote economic development, providing important support for the sustainable development of society.

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