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Hu Maoren: Real estate developers have to withdraw from urban residential construction

author:The headline of Kunlunce Research Institute
Hu Maoren: Real estate developers have to withdraw from urban residential construction

The three major livelihood issues of the Chinese people: education, health care and housing, have been plaguing the lives of middle- and low-class people for many years. Over the years, there has been a great improvement in education, and the state has made great efforts to rectify the imbalance of educational resources on the one hand, and on the other hand, it has also taken decisive measures for commercialization in the field of education. In the area of medical care, although there are still many unsatisfactory aspects, the social insurance system for urban residents and the new cooperative medical system for peasants have played a relatively large role in solving the problem that it is difficult and expensive for the masses to see a doctor. As for whether to implement free medical care for all in the future, it also depends on whether the country's overall financial resources can afford it, and there may be some other problems that need to be solved.

However, in terms of housing, it now seems that the housing problem of rural residents is not too big a problem to be fundamentally solved. At present, in the process of rural revitalization, the socialist collective economy in rural areas has begun to flourish, and the collective economy also plays a very important role in the construction of peasant housing. Homesteads on rural land are owned by the rural collective economy. In cities, local governments are less likely to intervene directly. Moreover, it seems that the relevant regulations for real estate developers to enter the countryside for residential construction are also relatively strict.

Housing construction in cities and towns has always been a big problem. Since urban land is owned by the state, construction is carried out on state-owned land, and a large part of it is now operated by local governments. Local governments have been eating the dividends of land transfer money for many years, and they are definitely unwilling to let go of this piece. Therefore, a large part of the cost of building a town house comes from this land transfer fee. Real estate developers get the land for construction, and even invest huge sums of money to invest in the land transfer money. In any case, the cost of the final residential sale is borne by the buyer, so no matter how expensive the land transfer fee is, it will not affect the profit of the real estate developer. In this case, it is the average resident with low and moderate incomes who really suffers. They can't afford such expensive housing anyway. Many of them are in a state of despair when faced with housing.

Therefore, in order to solve the housing problem of urban residents, it is necessary to start with the construction of low-rent housing or affordable housing funded by the government. This is a fundamental measure to fundamentally solve the housing problem of urban residents, especially those with low middle and low incomes. Urban residents live in low-rent housing and affordable housing, and do not need to rent from private landlords, so as not to spend high rents, let alone spend more money to buy expensive housing, so that they can become house slaves who cannot be freed for a lifetime. The fact that the homeowner has his own house does not mean that the owner must have the ownership of the house, it is enough to have the right to use, and the people do not have too high requirements.

In order to extensively build low-rent housing and affordable housing, there is a problem that must be resolved. That is, real estate developers must withdraw from the construction of residential buildings for urban residents. In the future, urban residents will no longer need to pay extremely expensive land transfer fees for residential construction, and this alone may greatly reduce the cost of residential construction. In addition to significantly reducing the cost of housing by real estate developers, there is no need for local governments to obtain more fiscal revenue from residential construction, especially from land transfer fees. The government finances the construction of houses, which are rented out to urban residents. As long as the rent is slightly higher than the depreciation cost of the house, this rent is mainly used for the maintenance and repair of low-rent housing and affordable housing.

For the government, giving up the land transfer fees originally paid by real estate developers for residential construction is obviously a big loss to the local government's revenue. However, isn't our people's government at the service of the people? Isn't it necessary for us to build low-rent housing and affordable housing for the people to solve this extremely important problem of people's livelihood? If some of our local governments are resolutely unwilling to give up the land transfer fees collected in residential construction just for the sake of the government's financial comfort, are they not getting along with the people? This is a big issue, and it has an important bearing on our people's government's responsibilities and concepts toward itself.

For real estate developers, they are certainly reluctant to quit residential construction. This is one of the important sources of profit for them in the future. However, people know that when real estate developers get rich, it is impossible for ordinary people to live in low-rent houses, and the suffering of the common people and the difficulties of the common people cannot be solved by their own strength in their own lives. Will this continue for a long time?

It is undeniable that some real estate developers have interests in collusion with officials of certain local governments on this issue. This is also the key to solving the housing problem of the majority of the people through the construction of low-rent housing and affordable housing. In this regard, the central government wants to issue a dead order, resolutely and resolutely cut off any connection between real estate developers and the construction of urban residents' housing; without such resoluteness and resoluteness, no matter how many young people live in urban housing, they will not be able to solve the problem.

A few decades ago, when residential construction was built as commercial housing, because the state was extremely short of funds for residential construction, the commercialization of housing at that time had a certain expedient measure. This reluctance is tantamount to an endorsement that some residents with money can give priority to solving the housing problem. However, if the commodification of housing is to continue as it has been for decades, it will be unfair to the majority of ordinary residents with low to moderate incomes. This problem must be resolved as soon as possible in a relatively short period of time. If it drags on any longer, the people will definitely scold their mother.

Now this kind of housing commodification has also brought about a series of new and complex social problems. Those families with girls require that the girl's fiancé must buy a commercial house before allowing his daughter to marry the man. This has greatly increased the cost of marriage for young men in urban areas, and many young men have to give up the possibility of marriage. Isn't this a serious social problem? Isn't the so-called mother-in-law economy a backward, decadent, and outdated concept and Xi that commoditizes marriage? Such Xi is harmful to today's China and extremely harmful to the production and healthy development of our country's population. Boys are unable to marry their daughters-in-law, and girls are unable to marry due to high demands, which has given rise to many serious and complex social problems. These problems bring more instability and harm to society.

Therefore, the construction of low-rent housing and affordable housing for urban residents must be vigorously promoted throughout the country as soon as possible. Real estate developers must get out of the residential construction sector as soon as possible. This is a major issue that is extremely urgent to solve, and all local governments absolutely must not undermine the general policy of national construction and development for the sake of the interests of their own small groups.

In the future, the business scope of real estate developers will only be limited to non-residential construction areas, such as commercial office buildings, large commercial buildings, factory buildings or storage warehouses. The demand for these rooms is not small. Of course, without the residential part, many real estate developers are unwilling. However, in order to solve the housing problem that the people are most concerned about and most urgent, real estate developers should have made some profits a long time ago, and excessive greed will not end well.

(The author is a senior researcher at the Kunlun Ce Research Institute; source: Kunlun Ce Network [author's authorization], revised and released; the picture comes from the Internet, invaded and deleted)