Many people see buying a home as a major event in their lives, not only because it is related to the stability of their residence, but also because many people see it as an important investment in wealth. With the changes in the economy and the rise in prices, what will become of the house that was originally worth 1 million in five years?
The volatility and future trends of the real estate market, especially in the current economic environment, have become difficult to predict. We'll take a closer look at how this trend is developing and how it affects investors who are looking to preserve or increase their value through real estate.
Over the past few years, we have undergone many changes, especially in the economic sphere. Prices continue to rise, while the purchasing power of money is decreasing.
Take daily life as an example, in the past, ten yuan could solve the problem of a meal, but now even the most basic noodles cost more than 20 yuan. In many ways, this situation reflects the reality of rapid price increases and currency depreciation.
People are reluctant to keep their money in banks due to currency depreciation. Many people are looking for other ways to invest in the hope of preserving or even increasing their value. Among them, real estate has become the first choice of many people because of its relative stability and value preservation.
Especially for those of us born in the 80s and 90s, many of us bought properties during the peak period of real estate around 2019. Many families have two or three properties thanks to the help of their parents, which means that their children do not need to buy new homes.
More and more people want to ease the burden of life instead of tying their future to a high mortgage. They cherish the time they spend with their families even more and want to live in the moment and enjoy life.
At the same time, although prices have been rising, the growth in the level of wages has not kept up with this trend. This makes the life of many people more stressful year by year.
The government's affordable housing projects provide housing prices far below market prices, which is a huge blow to the commercial housing market. Such a policy not only relieves the pressure on ordinary people's lives, but also inhibits further increases in housing prices.
Given these factors, it is unlikely that there will be major fluctuations in house prices in the future. For those investors who buy a house with 1 million, the house price may not be optimistic in five years.
Although these policies have curbed the atmosphere of speculation to a certain extent, they have also limited the natural growth of the real estate market. Investors should be aware of this and cannot expect a sharp rise in house prices in the short term.
Real estate investment is not without hope. For those who choose an area with great location and growth potential, there is still value in the long run.
In addition, with the advancement of urbanization, some second-tier cities have also shown strong growth potential, which provides new opportunities for real estate investors.