The professor of Peking University proposed a new plan, and those who do not have a house will benefit

The professor of Peking University proposed a new plan, and those who do not have a house will benefit

When it comes to housing reform, the scene of 1998 is vivid. In July of that year, the State Council issued the "Notice on Further Deepening the Reform of the Urban Housing System and Accelerating Housing Construction", which clearly abolished the housing distribution system and promoted the monetization of housing distribution from the second half of 1998. This is an important milestone in the history of housing reform in mainland China, marking the beginning of the era of comprehensive commoditization of national housing. Since then, housing has changed from welfare distribution to commodity, and has entered the era of commercial housing, injecting vitality and prosperity into the real estate industry for more than 20 years.

The professor of Peking University proposed a new plan, and those who do not have a house will benefit

The proof is in the data. Since the housing reform in 1998, after more than 20 years of vigorous development of the real estate industry, the shortage of housing resources that the mainland once faced has been greatly alleviated. Historically, in 1978, the per capita housing area of urban residents in the country was only 3.6 square meters, and 8.69 million urban households faced housing shortages. Clearly, the traditional housing allocation system is no longer able to meet the growing housing needs. Especially since the reform and opening up, with the rapid development of the country's economy and the acceleration of the urbanization process, a large number of people have poured into the cities, making the housing problem more severe.

However, the implementation of the housing commercialization reform has not only effectively alleviated the shortage of housing resources, but also become a powerful driving force for the mainland's economic development. According to the data, by the end of 2020, the per capita housing area of urban residents in mainland China had jumped to more than 40 square meters, an increase of 36.4 square meters from 1978. At the same time, the urbanization rate has also increased from 17.92% in 1978 to 66.16% in 2023. These earth-shaking changes fully demonstrate the far-reaching impact of housing reform, which not only improves people's living conditions, but also promotes the progress and development of the country.

The professor of Peking University proposed a new plan, and those who do not have a house will benefit

Since the first housing reform in 1998, the real estate industry in mainland China has developed rapidly, and in just a few years, it has successfully provided a safe place for 900 million urban people. However, with the rapid development of the industry, some problems have gradually emerged. The overemphasis on investment attributes in real estate has led to property hoarding and rising housing prices, which has brought heavy economic pressure to the general public.

Looking back at the early days of the housing commercialization reform, the supply of housing resources in mainland China exceeded demand, and the people's demand for housing was urgent, so housing prices continued to rise. With the steady progress of urbanization, nearly 20 million rural people are pouring into cities every year, further driving up housing prices.

However, at present, there is an oversupply of housing resources on the mainland. The speculative behaviour of property speculators has led to high house prices and rising vacancy rates. According to statistics, by the end of 2020, the average house price in mainland China has reached 9,860 yuan per square meter, and it takes a huge amount of money to buy a house. In first- and second-tier popular cities, housing prices have soared to tens of thousands of yuan or even more than 100,000 yuan per square meter. Although house prices have fallen slightly from 2021 to 2024, the average house price in 2023 will still be as high as 9,600 yuan per square meter, with a limited decline. This makes buying a home a heavy burden for the general population, especially low-income groups, young graduates and new urban populations. At the same time, the rental market is not an easy choice.

The professor of Peking University proposed a new plan, and those who do not have a house will benefit

As housing prices continue to soar, a large amount of social capital has poured into the real estate industry, which has undoubtedly put heavy pressure on the real economy. Can you imagine? It is too difficult for an ordinary family to have to spend many years of savings and take on a mortgage in order to have a cozy nest. Such economic pressures have made it difficult for them to maintain normal consumer demand, which has had a huge impact on the retail industry and other real economies.

Moreover, the soaring housing prices are also like dominoes, driving rents to continue to rise, making many businesses face huge rent pressure. What's more serious is that those scientific researchers who are silently dedicated to the field of scientific research and have made great contributions to the country and society are facing an unprecedented dilemma of buying a house because of their relatively low salaries. This state of affairs has not only seriously restricted the development of the mainland's high-tech industries, but has also cast a deep shadow on the mainland's future economic prospects.

The professor of Peking University proposed a new plan, and those who do not have a house will benefit

In the face of this severe challenge, many experts and scholars have put forward the idea of implementing the "second housing reform". They believe that through the "second housing reform", we are expected to see the light of day and solve many problems in the current property market. Looking back on the first housing reform in 1998, it was like a magic key, which successfully opened the door to the shortage of housing resources in the mainland. Therefore, people are looking forward to the "second housing reform", hoping to solve the current problem of excessive housing burden, inject new vitality into the real economy, and create better living conditions for scientific researchers. In response to the "second housing reform", Xu Yuan, a professor at Peking University, proposed a new plan, mainly focusing on six aspects:

"The second housing reform" and "the second opening" at the same time, to promote a new round of economic growth, in the "second opening" at the same time, the internal start of the "second housing reform", is a three-win policy grasp, short-term, medium-term and long-term strategic interests.

1. Qualifications for purchasing a house: for all people without housing, the only standard is to pay social security at the place of employment, and does not discriminate against the population without household registration and education;

2. House design: for low- and middle-income new citizen groups, small apartments of 40~60 square meters are the mainstay, and commercial houses complement each other to form a complete housing market;

3. City selection: It should be mainly selected in metropolises, metropolitan areas and core cities, and small and medium-sized cities cannot be selected. Based on the inflow of population, cities are selected according to the number of people entering the population and the quota of affordable housing is allocated;

4. Housing loan: abide by the principle of commercial sustainability, the down payment is not less than 20%, and the loan interest rate can be appropriately preferential;

5. Social security follows people: it is necessary to transfer the social security of new citizens to the social security system of the settled city, and the social security funds should be allocated and managed in a unified manner. It is necessary to adopt the gradual idea of "there is a difference in grade, no difference in identity", and gradually improve the level of social security;

6. Vigorously build schools, hospitals, commercial and other supporting facilities to improve the quality and availability of basic public services.

The core of Xu Yuan's concept of "secondary housing reform" is to solve the housing problem for low-income people. This is highly consistent with the country's goal of property market regulation, and both sides are trying to explore how to let the homeless live and work in peace and contentment. Although the per capita homeownership rate in mainland China has reached a high level, there are still some people, especially low-income people, who cannot afford to buy a home. Even if house prices drop significantly, it is still a distant dream for them.

Therefore, it is urgent to solve the housing problem of the homeless. When this part of the population is properly resettled, the rigid demand of the property market will be greatly reduced, and the housing price will also lose population support. In this way, the "second housing reform" not only meets the needs of low-income people, but also injects new vitality into the regulation and control of the property market. Farmers, urban low-income earners and those who just need to buy a home will all benefit from the "second housing reform".

The professor of Peking University proposed a new plan, and those who do not have a house will benefit

Obviously, if the "second housing reform" can be successfully implemented, we have reason to believe that the phenomenon of property market speculation will be effectively curbed, and housing prices will gradually return to a reasonable range. We are looking forward to this reform plan and believe that it will bring hope to more people to live and work in peace and contentment.

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