The real estate industry should return to the property of people's livelihood

As we all know, the "Golden Nine and Silver Ten" has always been a critical period for real estate sales. The new policy in the property market in late August in a timely manner, can be said to solve the real estate developers urgent need, I believe that the sales of each property will therefore have a good growth in the ring, home prices may also appear some rise.

But for speculators, if because "do not recognize loans" and expect the property market back to the bull market, want to rely on hoarding profiteering, it is pure luxury. Although the policy of "recognizing houses but not loans" is powerful, it can not change the general market trend, and this is not the intention of the policy.

The recent property market new policy, although considered a kind of surprise, but in fact also in this year, the government has been consistent within the logic of the policy. As early as the beginning of the year, Ni Hong, the Minister of Housing and Construction, said that in 2023, policies should be implemented according to the city and precise policies to boost market confidence. For the purchase of the first home of strong support, the down payment ratio and the first interest rate should be reduced.

July 24, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to adjust and optimize real estate policy at the right time, according to the city with a good policy toolbox, but also put forward "China's real estate market supply and demand has undergone significant changes" judgment. This means that a clear watershed of a major cycle, the policy toolbox is to serve the new supply and demand relationship, rather than change this supply and demand relationship.

Further back to last December's Central Economic Work Conference, the content involving real estate mentioned to ensure the delivery of buildings, livelihood, stability, and effectively prevent and resolve major economic and financial risks, etc. All show that, in the real estate market supply and demand relationship has undergone major changes, the main purpose of the policy tool is to stabilize the property market, stable housing prices, and stabilize the expectations.

This is not to say that the real estate industry is no longer important. The status of real estate in the national economy is still pivotal, its large scale, high weight, long chain, driven by strong, involving a wide range of directly for the city and regional development has a pulling effect, but also about people's livelihood and employment, must be given high priority.

But in the face of the new market supply and demand situation, the real estate industry can not go back to the old model, real estate companies can not go back to the old business model. In the past, the real estate industry is characterized by high debt, high leverage, high turnover, and rely on land and financing for development, bringing huge profits but also accompanied by high risk, encountering market weakness will be prone to mine, and then hope for policy stimulus.

A new and healthier development model must jump out of this cycle and return to the basic livelihood attributes of the real estate industry, i.e., to meet the demand for housing, improve the quality of housing, and build "good houses" for consumers.

The real estate industry is still a pillar industry, but this does not mean that the problems of profiteering, excessive financialization and bubbles are rationalized. It is not just a question of whether it should or should not, but also a question of whether it can be sustained, not even by the will of the policy, but depending on the new economic situation, demographic situation, income, supply and demand, and other profound background.

In fact, real estate policy also serves this new situation. Therefore, the future development of real estate enterprises thinking, business model also need to obey the new situation, rebuild a more long-term self-planning.