In an age where we seem to be surrounded by high-rise buildings and urbanization is accelerating, yet a perplexing phenomenon is emerging: the real estate market is oversupplied, but developers still seem to be happy to build on it. In this regard, the famous economist Wen Tiejun revealed the truth behind this seemingly contradictory phenomenon.
Wen Tiejun, an influential figure in China's economics circles, has always attracted widespread public attention with his words. One sunny afternoon, I came to his office with a curiosity about the real estate market, hoping to find answers from his wisdom.
Me: "Professor Wen, we've all seen that in today's cities, there are many high-rise buildings and the vacancy rate remains high, so why are developers still building new houses?"
Wen Tiejun smiled, his eyes were far-reaching, as if he had seen through the logic behind all this: "This question seems simple, but it is actually complicated. Developers' motivation to build houses is not simply to meet market demand. ”
His words made me ponder. Yes, the real estate market is not a one-dimensional supply and demand relationship, but involves a comprehensive factor of policy, finance, investment and other aspects.
Wen Tiejun continued: "First of all, we need to understand that real estate is not only a consumer goods market, it is also an investment market. For developers, building a house is not only to sell to buyers, but also to increase the value of their own assets. ”
I nodded, something I really hadn't thought about before. The real estate market is not just determined by the buyer, the developer's own investment strategy is also an important factor.
Wen Tiejun continued: "Secondly, we need to see that China's urbanization process is not yet complete. Although there is already a surplus of real estate in some large cities, the demand in the real estate market is still great in many second- and third-tier cities, and even in rural areas. ”
I also feel this very much. In my small city, although the real estate market is not as hot as in the big cities, the demand for real estate is gradually increasing as urbanization advances.
Wen Tiejun continued to analyze: "Finally, we have to consider the impact of the policy. The government's regulation and control policies on the real estate market are also an important factor affecting the construction of houses by developers. For example, the government may influence the supply and demand of the real estate market through land supply, credit policies and other means. ”
It dawned on me that there are so many complex factors behind the real estate market. Wen Tiejun's words gave me a deeper understanding of this market.
Saying goodbye to Wen Tiejun, I walked on the way home with a lot of thoughts. The real estate market, this seemingly simple market, hides such a complex logic behind it. Developers continue to build houses, not simply to meet market demand, but involve investment, urbanization, policies and other factors. It seems that in order to truly understand the real estate market, we need to continue to learn and think.
The real estate market, a market full of opportunities and challenges, will continue to play an important role in China's economic development. And we also need to constantly improve our cognitive level in order to find our place in this market.