China's housing market value in 2020 is 62.6 trillion US dollars, which is equivalent to the total market value of the United States, Germany, the United Kingdom and France of 65.1 trillion US dollars. China's inflated housing prices are already an indisputable fact! The latest data show that there are about 200 million households with bank loans to buy houses, while the average household population in China is about 3.02 people. In other words, nearly 600 million people in China are house slaves, and almost half of China's families are cut leeks by inflated housing prices.
On May 28, 2020, Premier Li Keqiang mentioned in response to a reporter's question that nearly 600 million people in China earn less than 1,000 yuan per month. According to the latest research data of the Income Research Institute of Beijing Normal University in 2020, the number of people with a monthly salary of less than 2,000 in China is as high as 964 million, accounting for 68.85% of the total population of the country!
China has such a large number of low-income people, and these low-income people, even if they do not eat or drink, can not afford to buy such a high-priced house in China. How did China's high housing prices come about? Who is behind it?
Houses existed in China for a long time as commodities. As long as it is a commodity, it needs to be produced, it needs to be traded, and of course there is competition. As long as it is a commodity, if it is thought that it may appreciate in value, there will be capital as a demon, and all means will tell buyers that they will appreciate in the future and will increase prices. In China, home is everyone's belonging, and the house is something that almost everyone craves in Chinese: with a small point, you still want to have a big one, you have a bungalow, and you want to have a villa; you have a house in the north, and you want to have a set in the south to make yourself survive the winter; you have a house in the south, and you want to have a house in the north as a summer escape; the south and the north have it, you can also make investment, and you will definitely make money in the future. Imagination gradually becomes a universal reality, and a consensus will be formed: buying a house can not only live, but also make money. As long as this consensus is formed, the house becomes a tool to make money. Buying a home investment is the most stable and profitable than any investment. This consensus is the same as the consensus mechanism formed by some worthless virtual currencies. This widespread, massive demand has become a gimmick for capital to push up house prices. China has a population of 1.4 billion, and the demand is terrible. As a result, a large amount of funds have a market, land prices continue to soar, and local finances make a lot of money; the whole world is a construction site, and a large number of rural labors have poured into real estate to become construction workers; countless supporting manufacturers have formed new markets on new construction sites; banks are lined up to wait for loans to buy houses. In order to push up house prices, real estate developers and intermediaries are playing tricks to stimulate you to settle down as soon as possible! They even went so far as to hire extras to create a thriving scene that was hard to find.
When the reality continues to reproduce the appreciation of houses becomes a common phenomenon, the inflated price of houses as commodities will inevitably become inevitable. And this kind of inflated commodity in the purchase of kinetic energy exhausted, or leeks wallets are hollowed out, the winter of real estate will come, at that time, will become a social disaster: a large number of social funds deposited in the real estate market, the real economy is seriously damaged; a large number of house slaves have to give up their dreams in order to repay loans, the power of social innovation is seriously eroded, and even the house slaves will repeatedly lower their moral bottom line, wandering in the gray area, and then form a decline in social moral standards A large number of bank loans have become dead debts and have to close their doors; a large number of supporting manufacturers have closed their doors; and a large number of people have lost their jobs. Because almost the whole people participated in this so-called feast, no one can escape, a series of distorted policies will be introduced, and the indicators will not cure the root cause. Real estate has become a social problem today: without real estate, local finances have no income, and the fiscal deficit is getting bigger and bigger; without the drive of real estate, local governments do not know how to work; without the employment of real estate markets, a large number of migrant workers are unemployed; without real estate, a large number of supporting manufacturers cannot continue to operate.
We have reason to believe that the reason for the inflated housing prices is the excessive marketization of the house as a commodity, and the lack of basic supervision. Capital is behind the scenes. Although the house is a commodity, it is related to the well-being of everyone, and it cannot circulate in the market like a general commodity. Just like salt, food, water, and electricity, although they are commodities, the state needs to limit the attributes of their commodities. If salt, grain, water, and electricity are also managed by market-oriented means, it may cause the poor to be unable to afford to eat salt, grain, water, and electricity. If you operate these commodities in full accordance with the market, the phenomenon similar to that of the Texas winter will inevitably occur: in February 2021, the price of electricity in Texas rose more than 200 times, more than 30 people were frozen to death, and nearly 4 million people faced a prolonged lack of electricity.
Since 1978, when private people were allowed to build houses and buy houses, the relevant policies of the state for housing have almost always been in the market regulation link, such as the supply of land, housing loan policies, real estate investment and so on. Since 1978, a series of national policies on the regulation and control of the real estate market have never accurately limited the inclusive attributes of housing commodities. Of course, the development of real estate in the past 40 years has improved the living conditions of the Chinese people to a certain extent, stimulated consumption, and activated the market. Without high profit margins, it would be impossible for capital to push China up for such a dramatic change. All we can say is that it is time to close. The positive benefits that real estate brings to society have been exhausted. The house is not only related to the interests of every ordinary person, but also related to the long-term and stable development of the national economy. The government's transformation from land finance to industrial finance is already the trend of the times, and if it relies on real estate again, it is undoubtedly a drink to quench thirst.
Although at the 2016 Central Economic Work Conference, it was proposed: "Houses are used to live, not to speculate." ”。 For the first time, some restrictions were made on the commodity properties of the house, but it was obviously not enough. Because any commodity, whether it is "garlic you fierce", "beans you play", "coal super wind", "xiang qian onion", "sugar Gaozong", etc., from the perspective of market supervision is not allowed to be fried. As long as there is speculation for capital, there is speculation, which is a malicious act that disrupts the market, although this kind of speculation is not uncommon in the market, it is the result of excessive marketization and capital demonization.
Houses, like grain, salt, water and electricity, are special commodities involving the vital interests of each citizen, and from the perspective of commodity attributes, they need to be limited by their corresponding attributes. For example, grain, salt, water and electricity, although they are commodities, do not allow huge profits, and even need the state to unify the price limit. Especially as China is a socialist country, it should reflect the inclusiveness of the house.
The fundamental reason for the rise in house prices in China is the excessive market, which has led to the currency-like nature of houses. Money as a universal exchange medium, in any relatively stable money market, money has value (value is given its value through social credit), rapid transaction, circulation, stored value and even appreciation (even if the currency depreciates due to inflation, it can also obtain interest through borrowing) and other functions, and some commodities, especially commodities with large social demand and gradual scarcity, have these functions of money, which we call such as oil, soybeans, steel, wood and so on. The reason why China's housing prices have risen violently is because the house not only has the function of residence, but also has the function of money-like. First of all, the house has the function of living, it has the use value; secondly, the house has a wide demand in the market, especially in the early days, it is easy to trade, with a wide range of circulation; secondly, the house has formed a consensus that the house will appreciate through massive demand and capital, so the house has the function of storing value and even appreciating.
To solve the social problem of high housing prices in China, the key is to remove the attributes of the house as a currency, that is, to eliminate the function of the asset income of the house, in order to achieve the effect of curing the symptoms and curing the root causes. Otherwise, it is difficult to curb the irrational rise in house prices.
Putting aside the bubble of inflated houses, the price increase of houses is often the increase in the value of houses caused by comprehensive factors such as transportation, medical care, education, employment and other comprehensive factors in cities or towns, and the supporting infrastructure of these cities is mainly built with public investment. The rise of the house is generally passive, not the income of the buyer's labor, and the profit of the rise should be attributed to the society rather than the buyer, and should be attributed to the state as a public welfare reinvestment. In any city, as long as the high-speed rail and subway are opened, house prices will rise, and in many cities, the subway has been in a state of loss. Not to mention high-speed rail, many of China's high-speed rail have been forced to stop work in 2022, and the initial estimate of China's high-speed rail loss has reached 4 trillion yuan.
Many of the country's policies on real estate stayed in suppressing excessively rapid rises, and did not fundamentally eliminate the attributes of house-like currencies. Although some policies have been gradually introduced in terms of trading and circulation, there are policies at the top and countermeasures at the bottom. In many cities, there has been a phenomenon in which couples obtain a house by divorce on leave. Objectively, this phenomenon has led to the loss of social ethics.
In order to achieve the inclusiveness of houses as special commodities, we must first solve the problem of land, and land involves local fiscal revenue, which also indirectly leads to the phenomenon of local governments passively implementing central policies. Some are also clearly contrary to central policies, as evidenced by the fact that some governments have issued drop restriction orders in 2020. In a country with the interests of the whole people at the core, farmers should be born with land to grow. For urban residents, they should also enjoy the right to use certain land for free. In the high housing prices, a large part is spent on land use rights, which is not reasonable. Urban residents should be entitled to free use of land according to the comprehensive consideration of daily average and household average, such as a family of four, excluding the plot ratio, and each person enjoys the right to use 40 square meters free of charge. Then they buy a house below 120 square meters, and their corresponding land use rights do not need to pay, while the part higher than 120 square meters needs to pay the land transfer fee, and less than 120 square meters is not compensated. In this way, the buyer only needs to bear the cost of housing construction and the reasonable profit of the real estate enterprise.
Second, it is necessary to curb the high profits generated by houses in the transaction link. The first is to prevent real estate enterprises from obtaining high profits, and the price department should approve the price benchmark of houses to avoid real estate enterprises from selling houses at high prices; the second is to prevent individuals from selling houses to obtain high profits, deduct currency depreciation and bank benchmark interest, and include the higher part into local public construction investment funds.
Again, we should put an end to the phenomenon of multiple houses for one person, one family or enterprise, and avoid the house as a secondary investment or speculation, such as rent collection. Individuals and families who already own multiple rooms should be cleaned up within a limited time. At the same time, for houses other than just need housing, the real estate city capacity increase tax should be added.
In layman's terms, only by eliminating the profit margin of the house as an asset income can we completely make the housing truly "only live and not speculate". Otherwise, a country will generally become a house slave or even cannot afford to buy a house, cannot afford to raise children, cannot afford to go to school, looks down on illness, and cannot afford to be old! What future is there to talk about in such a country!