Why are housing prices soaring in China?

Don't you think we have misunderstood the word house price itself?

In fact, the lack of affordable housing in China has given strong support to the financial commodity of commercial housing, resulting in high prices of commercial housing.

If it sounds hard to understand, I'll give you an analogy, a car.

Ordinary people usually travel by bus, rent a car, take a taxi, or ride a battery bike. Only the rich can buy their own cars. If I were a middle class and a little better off, I might buy a car with almost tens of thousands of dollars, plus the annual cost of car maintenance is 1.5 million yuan, which will be more than 30 thousand in five years. In ordinary second-and third-tier cities, it is more convenient to travel. If I think it is not cost-effective to buy a car, I can take a taxi every day, with an average of 10 yuan, and I can take a taxi 3,000 times a year. As a person, this is more selective.

But what if one day, taxis and buses are banned? If you want to take a bus, you can only buy a car. What will happen? The consequence must be an increase in car prices, because travel is inseparable from driving. Unless you leave for work 1 hour in advance, you can only buy a car, and the price of the car cannot be adjusted.

Our real estate market is such a principle.

There are two kinds of housing, the first is affordable housing; The second is commercial housing.

Affordable housing is a house built by the government with state land, which is generally divided into affordable housing, low-rent housing, public rental housing and shed-to-house reform. Residents have no ownership of the house, and the house price is relatively cheap. Generally, the price of affordable housing is set at 6 times of the local per capita annual income, but it cannot be resold. If it is sold, it can be sold back to the government at the original price. The construction of affordable housing aims to achieve the goal of everyone having a house to live in, which is also the basic obligation of a normal government (to ensure citizens' education in food, clothing, housing and transportation).

Commercial housing is another concept. The owner of the commercial house owns the ownership of the house and the land (except in China, it is the land use right), and the wealth brought by the appreciation of the private house and the private land is also owned by the individual (the tax paid after the wealth is called property tax). Therefore, commercial housing is a typical financial product (please note here why it is illegal to fry garlic, but it is legal to fry houses, because garlic is not a financial product, but commercial housing is a financial product).

Then the difference between commercial housing and affordable housing is clarified. Let's talk about the relationship between commercial housing and affordable housing.

Just now I mentioned the property tax. Yes, the property tax is the key point between commercial housing and affordable housing.

In order to achieve the goal of housing for all, the government must build affordable housing for the middle and lower classes. I'll give you a place to live first, and then it's up to you to decide whether to make more efforts to buy a commercial house or spend as much as you want. ) So how does the government get the funds to build affordable housing? Property tax, of course!

So what is the property tax? It can be understood that the owners of commercial housing pay part of the tax on the profits they get from land appreciation.

Paying the property tax itself will not bring any adverse effects to the commercial housing owners, because the land has increased in value, and only by earning money can the commercial housing owners reach the tax payment standard, so they will be willing to pay taxes to the government, and the government will only have the funds to build affordable housing after asking for the property tax. So in general, the relationship between affordable housing and commercial housing is * * *. The higher the price of commercial housing, the more perfect the construction of affordable housing, which benefits not only the construction of affordable housing, but also the local public security and education. Therefore, it is no exaggeration to say that a reasonable property tax is related to the living environment of a city.

However, this is the general situation. China is not suitable for levying property tax because of its special circumstances. I will explain it in detail later.

The present situation and reasons of real estate industry in China.

As I said just now, the relationship between affordable housing and commercial housing is * * *, but it is special in China. In different countries, the ratio of affordable housing to commercial housing is different, some are 8: 2, some are 9: 1, but there is a basic point, that is, the premise of affordable housing comes first, and then the market of commercial housing comes, while in China, on the contrary, affordable housing is 1 and commercial housing is 9.

So why are there so few affordable houses in our country?

We should all remember that nowadays, after 80s, many parents lived in units when they were children. This housing allocation is affordable housing. When we were young, the proportion of affordable housing was 90%. But now it's basically gone. Why?

That should start from 98!

In China in 1998, due to the impact of reform and opening up (see Baidu Encyclopedia: Laid-off), the laid-off crisis reached its peak, with high unemployment rate and low employment rate. At that time, the government thought of a way to stop the construction of affordable housing and increase the construction of commercial housing, and then let people who should have bought affordable housing buy commercial housing at their own expense. After the government took the land transfer fee, it first invested in infrastructure construction, beautified the city, and then attracted investment. In the process of construction, many jobs will naturally be created and the employment problem will be alleviated. After the employment rate is reported, the surrounding industries (such as reinforced concrete) will develop, the retail business will be easy, and there will be more employees, so that China's economy will have a breathing space. However, in this way, the housing problem will inevitably appear.

Due to the stagnant construction of affordable housing, the rigid demand for commercial housing has become increasingly prominent, and commercial housing is also a financial product. It is terrible to give a financial product a strong rigid demand. As I said just now, commercial housing itself is a financial product, which is different from fried mung bean garlic, which belongs to people's livelihood food. It is illegal to fry this thing, which violates the Anti-Monopoly Law. If you are caught, you will go to jail. However, commercial housing is originally a financial product, and the role of financial products originally includes investment purposes. Although real estate speculation is unreasonable, it is reasonable and legal. Young people born in the 1980s have reached the age of marriage, and the demand for housing is growing. Therefore, house prices have exploded in recent years.

The reason for the high price of commercial housing is the lack of affordable housing. People who can't afford commercial housing should actually have housing. They should live in affordable housing provided by the government, or low-rent housing or public rental housing. Then through their efforts, after saving enough money, they will consider whether to improve the living environment and buy good commercial housing, instead of letting those students face the oppression of high commercial housing prices as soon as they step into society.

So, I think most people have got the concept wrong now. It is meaningless for you to aim at housing prices. That's what you play after you have money. What everyone should pay attention to now is how to urge the government to build affordable housing. This is the key. Moreover, if there are more affordable housing, the rigid demand for commercial housing will immediately decrease, and the goal of improving the living environment will not be too far away. ...

By the time I answered, the government had made a controversial behavior and a correct behavior. The controversial behavior is that some cities levy property taxes. Although I personally think this tax is controversial, at least he also made it clear that this tax is used to build affordable housing. This means that the central government and some local governments have found the key to solve the big problem of housing difficulties for ordinary people, which is gratifying. Another correct thing is that the central government has explicitly issued1year to build1100000 sets of affordable housing. Even if the local government obstructs it in every way, I think at least 5-7 million sets will be built. If we can persist in doing this every year, China real estate will definitely get out of this gloomy era.