The just-concluded Central Economic Work Conference pointed out that it is necessary to ensure the steady development of the real estate market, do a solid job in ensuring the delivery of buildings, protecting people's livelihood, and ensuring stability, meet the reasonable financing needs of the industry, promote industry restructuring and mergers, effectively prevent and resolve the risks of high-quality leading real estate companies, improve the asset and liability situation, and at the same time resolutely crack down on illegal and criminal activities in accordance with the law. We must implement city-specific policies to support rigid and improved housing needs, solve the housing problems of new citizens, young people, etc., and explore the construction of a long-term rental housing market. We must adhere to the positioning that houses are for living in, not for speculation, and promote the smooth transition of the real estate industry to a new development model.
This meeting made important arrangements for the risk resolution and sustainable development of the real estate industry, and pointed out the direction for the work related to the real estate market in 2023. The real estate chain is long and involves a wide range of areas. It plays an important role in affecting residents' lives and property, macroeconomic cycle and industrial chain stability, government finances, and financial markets. At present and in the future, promoting the overall stable and healthy development of the real estate market must be placed in a more prominent position, so that real estate stability can play a more active role in promoting the overall recovery of economic operation and next year.
The Central Economic Work Conference emphasized that "effectively prevents and resolves major economic financial risks ". Resolving risks in the real estate industry is the top priority to effectively prevent and resolve major economic and financial risks.. Since the second half of last year, my country's real estate market has weakened significantly, and has accelerated its decline in recent months, becoming a major risk factor affecting economic operations. The real estate industry accounts for about 7% of GDP, and the construction industry accounts for 14%; land transfer revenue and real estate-related taxes account for nearly half of local comprehensive financial resources and 60% of urban household assets. Real estate loans plus loans with real estate as collateral account for 39% of the total loan balance. It has an important impact on financial stability and is an industry with strong spillovers and systemic importance. The early macro-control of and has resolved the risk of a sharp rise. Now the accelerated decline has become the main contradiction, and the real estate industry urgently needs to stop the decline.
In the future, stronger policies and financial support for should be provided to the supply side. The capital chain of the real estate industry is tight, and some companies have even experienced capital chain breaks. This has been relatively obvious since the second half of last year. In recent times, financial authorities have repeatedly mentioned meeting the reasonable financing needs of the real estate industry and actively introduced relevant measures. The implementation of the "16 Financial Support Real Estate Policies" has significantly increased financial support for real estate companies in the financial sector. The three arrows of credit, bonds, and equity financing have released a large amount of financial support for the real estate industry, which will strongly support industry restructuring and mergers and acquisitions, and will also play a positive role in effectively preventing and defusing risks of high-quality leading real estate companies, and improving the asset and liability status. It is expected that real estate financial support policies will further strengthen and provide sufficient liquidity to the industry.
Restrictive policies that hinder the release of consumer demand will be further optimized in order to better tap the potential of housing consumption. Improving the expectations of home buyers and all parties on the real estate market is of great significance to the virtuous cycle of the real estate market. Currently, weak expectations are still a problem facing the real estate market. Home buyers are worried that they will not be able to hand over the house on time after buying the house, because there have been many precedents of late handover. Therefore, doing everything possible to promote the work of "guaranteing the delivery of houses" is not only to ensure the rights and interests of ordinary people who buy houses, but also the key to allowing house buyers to have good expectations for the market. Real estate-related policies must also intensify efforts to better meet rigid and improvement needs. In particular, some restrictive policies in the past to curb market overheating may no longer adapt to the current market conditions. Therefore, it is necessary to appropriately relax, remove relevant restrictions, or even change restrictions into incentives. Industry insiders generally believe that the demand for improvement is increasing in the market, and there is still room for adjustment and optimization of policies in this area.The release of housing consumption demand also includes the implementation of fertility and talent policies to solve the housing problems of new and old citizens, young people, etc.; encourage the increase in the supply of affordable rental housing and develop the long-term rental market; reasonably increase consumer credit and support consumption such as housing improvement. Financial support for rigid and improved housing needs will also increase.
The smooth transition of the real estate industry to a new development model requires medium- and long-term root causes to deal with . Promoting the healthy development of the real estate industry ultimately requires the reform and improvement of basic systems such as land, taxation, and finance related to real estate. Promoting both renting and purchasing will be an important direction of the new development model. my country will increase the supply of market-oriented long-term rental housing and affordable rental housing through multiple channels, which will generate many new market development opportunities. At the same time, our country will promote the transformation and development of real estate enterprises and get rid of the "high debt, high leverage, and high turnover" model for many years. The real estate industry will enter a stage of relatively small but stable development from the "three high" model. In the future, the supply and demand relationship in the real estate market, population changes, and urbanization patterns, including changes in urban agglomerations, urban renewal, and re-urbanization, will have a profound impact on the real estate market. Therefore, real estate-related policies should also be combined with future development trends to promote a smooth transition of the industry to a new development model.
The positioning of “housing is for living, not for speculation” should stick to for a long time. Relevant policies targeting the supply and demand sides of the real estate industry aim to promote the stabilization and recovery of the industry and maintain overall stability. It should be noted that the development of the market cannot deviate from the positioning of "housing for living, not speculation", and must focus on stabilizing market entities and stabilizing people's livelihood. "Housing for living, not for speculation" should not and will not break through. It is a policy positioning that needs to be adhered to in the long term.
Regarding the development of the real estate industry, we must not only see the difficulties before us, but also strengthen our confidence. There is still much room for improvement in my country's urbanization rate, and there is great potential for demand for rigid and improved housing. The policies and measures recently introduced intensively will gradually take effect, and various policies and measures will continue to be improved, and efforts will be made from the supply side, expectations and demand sides, as well as promoting the transformation of new industry models. As long as the awareness of is in place, the work is in place and we continue to do a good job, real estate risks can be resolved and the market can achieve stable development .
