On the eve of the 20th National Congress of the Communist Party of China, some big cities in China attempted to show their determination to revitalize the economy by stimulating the property market. Following the formulation of hard targets for the resumption of construction of suspended buildings in Zhengzhou, Henan, the next step is to relax the conditions for settlement in the central urban area. However, some economists believe that the Chinese people have lost confidence in buying a house for self-occupation or investment, and it is probably just the wishful thinking of the local government to save the property market with the “zero threshold” approach.
In recent years, many cities in China, such as Shijiazhuang, Nanchang, Guiyang, etc., have successively launched the “zero threshold settlement” strategy, but these provincial capitals are only general big cities. Zhengzhou has become the first megacity in China to completely lift restrictions on settlement this year.
According to the plan, those who have legal and stable employment or legal and stable residence in the central urban area of Zhengzhou will not be limited by the number of years of social security payment and residence. Urban resident account.
According to the analysis of the official media Henan Commercial Daily, the reason for the sudden and complete cancellation of the settlement restrictions in megacities is that robbing people is obviously the main starting point, and the stability of the housing market is maintained by robbing people.
Commander: It is difficult for buyers to settle down with zero threshold for holding coins to buy
Singer, a financial scholar who graduated from Shandong University, recalled that during Hu Jintao’s reign, social security contributions and length of residence had always been obstacles for Chinese to buy a house.
Commander: “In that era, homebuyers could not buy a house even if they had money, because they also had to meet a series of other conditions, which actually raised the threshold for settlement in many megacities and megacities. Why did the local government say at that time, How to use these regulations to restrict home buyers from settling in local areas? In essence, it is still a ‘seller’s market’ problem. At that time, the financial resources of these mega and super cities, the debt of local governments, etc., many financial indicators were excellent, and they were not as good as they are now. This creates a serious local government debt crisis.”
The commander said that the effectiveness of macro-control policies has become a chronic disease of the Chinese economy.
The commander said: “The problem now is that there are a large number of home buyers in the market who are waiting to buy, and that you only relax the restrictions on the social security payment period and the length of residence, and let them settle down. Now I am afraid that this trick will no longer work. People don’t buy it anymore. People think, ‘What if I go to the city and buy a house?’ Social security can’t keep up, and it still costs money to see a doctor. China’s social security system doesn’t deliver.”
He said that whether it is for self-occupation or investment, for Chinese people, the attractiveness of going to the city to buy a house is not as attractive as it used to be.
The commander said: “Now China’s housing prices are ‘falling and falling’ endlessly, and the rise has been sluggish. In this case, the real estate boom may come to nothing. These people want to enter the city to buy investment properties and stir up the real estate market in the city. I’m afraid The Chinese government’s idea is wishful thinking.”
Analysis: Population loss hits megacities taxation
Wu Jianzhong, an associate professor at the General Education Center of Taipei University of Ocean Science and Technology, said that in the past two years, Zhengzhou, as a mega city, has been hit by epidemics and floods one after another.
Wu Jianzhong said: “If I want to live in the city, I must first have a job, but in the past two years, due to the epidemic, the income and expenditure have become less stable. There have been population movements and emigration in big cities. Zhengzhou is also an inland city, and its population is not as good as that of other coastal cities.”
In response to the unfinished building turmoil, the Zhengzhou Municipal Government issued a document on the special action of “guaranteing the handover of the building” earlier, requiring “30 days of hard work” to ensure that all the suspended buildings continue to resume work, but Wu Jianzhong is worried that these hard indicators may cause sequelae.
Wu Jianzhong said: “Can these real estate companies continue to build buildings after the political movement and maintain the quality of floor construction? Even if there is such a zero-threshold policy for buildings, in fact, it is too slow for capital preparation, and it will not achieve immediate results. Effect.”
He believes that after the closing of the 20th National Congress of the Communist Party of China, China will continue to dynamically clear it, and the unfavorable factors such as the restructuring of the industrial supply chain will make the economy worse. It is not surprising that ordinary people cannot afford to buy a house or pay a mortgage.
Reporter: Gao Feng Editor in charge: Xu Shuting Jiayuan Web editor: Ruizhe