With the implement of efficient polices, the development of real estate will be healthier and stable in China's future.
In the past decades, China's real estate achieved rapid development and great achievements, making great contributions on economic growth and social progress. Among the three economic growth powers, namely, consumption, investment and export trade, investment and export trade constitute the core of China's growth, which is real estate is the important strength of investment.
China's real estate seems to have been in a scarce condition of seller's market, even keeping with more than annual growth rate of 20%; however, it is still difficult to meet rising demand for housing. The reason why is complicated. On the one hand, because of the rapid development of the GDP and GNP, the course of urbanization drive urban employment along with the increasing of population and the development of commercial and service, have made the high demand for real estate.
As a matter of fact, it is hard to have every citizen own property due to the country's limited land supply and huge population. Meanwhile, it is a fact that a lot of people who cannot afford property, such as new graduates and migrant workers, renting apartments. The central government introduced a slew of policies to calm down the hot real estate market this year, including the suspension of mortgages for third-home purchases in first-tier cities, like Beijing and Shanghai. Whereas, policies launched this year to tighten the rise in housing prices have not been achieved satisfactory results. The government promises to be committed to increase the supply of affordable housing and will strictly control speculation in the property market. An official said that how to make an efficient use of the existing stock of housing is also important to ease the imbalance of supply and demand. With the implement of these politics, the development of a nation’s real estate will be healthier and stable in future.
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