Recently, there have been new developments in real estate, and Hangzhou and Xi'an have lifted purchase restrictions, which has once again aroused everyone's close attention to the industry.
How to solve some of the challenges and practical problems faced by real estate, and where will real estate go? How should this industry, which is related to the national economy and people's livelihood, be managed so that it can run on a normal track?
Huang Qifan, the former mayor of Chongqing, also encountered problems about real estate development during his work in Chongqing, and he shares these stories and his own ideas for solving problems in his new book "Restructuring and Breakthrough".
We have compiled Huang Qifan's thoughts and judgments on real estate in the book, and the content is very valuable and practical.
Author: Huang Qifan, Executive Vice Chairman of the Academic Committee of the China National Innovation and Development Strategy Research Association, former Mayor of Chongqing
来 源:正和岛(ID:zhenghedao)
First, as soon as he took office, he encountered the problem of unfinished buildings
Friday, October 12, 2001 was the day I took office as Vice Mayor of Chongqing. At that time, Chongqing's GDP was only about 190 billion yuan, and its fiscal revenue was less than 20 billion yuan.
In the year since I took office, many urgent and difficult things have come one after another, testing me as a "new official." Thanks to the restructuring ideas and practical experience formed over the years, I do not shy away from contradictions, rise to the occasion, see the moves, and resolve the contradictions one by one. Looking back to this day, the past is still vivid and evocative.
The Chongqing Municipal Party Committee and the Municipal Government are adjacent to the office. On the day of registration, I passed by the compound of the municipal party committee and saw two or three hundred people surrounded by the door, all of them in black, obviously petitioners. After settling myself in, I casually asked, "Where did these petitioners come from?" Someone immediately replied: "It's a petitioner from the central garden of the subway." ”
About a month later, one afternoon, I was working in my unit when I suddenly heard a commotion at the entrance of the city hall. When I inquired, I was still a petitioner in the central garden of the subway.
It's been a month since the matter was resolved, why hasn't it been resolved? So, I called the deputy director of the General Office, who was in charge of stability at the time, to the office.
"This Metro Center Garden is a real estate project that started construction in 1992 and includes high-rise residential, office and retail buildings," he said. In 1997, due to the rupture of the developer's capital chain, it became an unfinished building, and more than 1,000 residents' money was trapped in it.
In order to discuss the law, in the following four years, they petitioned the municipal party committee and the municipal government 36 times. The relevant deputy mayor and secretary general of the municipal government have held no less than 20 coordination meetings, large and small, and everyone feels that it is very tricky and cannot come up with an effective solution, so they can only temporarily persuade the people to go home. But if the problem is not solved, the people will come again after a while, and this repeated situation has become a big problem. ”
After listening to his brief introduction, I preliminarily judged that this was a backlog of letters and visits caused by bad debts in an unfinished building, so I went on to ask: "According to the information you know, is there a serious capital 'running away' in this project, that is, has the developer used bank loans to speculate in stocks and gamble, resulting in a loss of the project?" Does it constitute a criminal case? ”
The comrade replied: "The amount of development investment is roughly balanced with the amount of physical goods, and the developer's funds are basically precipitated in the project. ”
1. The developer is playing "karate"
I immediately decided: "You inform the relevant units of the project, including the bank, the construction unit, the housing management bureau, the Chongqing Municipal Construction Committee (hereinafter referred to as the Municipal Construction Committee), as well as the comrades of the court and the public security, that the meeting will be held at half past seven tonight, and I will hear the situation first." ”
At half past seven in the evening, as soon as I entered the conference room, I saw that the room was full of more than 70 people. I just said "related units" before, how can there be so many related units?
It turned out that this matter was coordinated more than 20 times, and all units and departments from all sides were involved, and all of them became relevant units.
Seeing this, I will let everyone speak separately and report on the ins and outs of the dispute in the subway center garden.
It turned out that the developer of the subway center garden was a small boss, playing "karate", and its own capital was insufficient, and it completely relied on debt to build buildings. This project is located in Jiefangbei, with a total construction area of nearly 100,000 square meters. In 1992, the cost of the project in Chongqing was much lower than that in the coastal areas, only more than 2,000 yuan per square meter, and the entire project cost more than 200 million yuan after completion. So how does this little boss work?
First of all, land acquisition and relocation should be compensated. He told the residents: "For the time being, you will not be compensated, you can borrow from relatives and friends, and after three years the house is built, I will give you a new house." During the three-year transition period, I will give you a high interest rate of 15% per year on the relocation fee. ”
Since they have money and can live in new houses in the future, the residents will naturally be happy. Moreover, in the first 3 years, everyone did get high interest, so everything was fine.
Second, the construction of the project costs money, so he used the land as collateral to borrow money from the bank. The bank promised to lend him 164 million yuan, but the interest must be 15%, and at the beginning of the loan, one year's interest was deducted, that is, more than 24 million yuan, which is commonly known as "cutting off debt". He was hungry and immediately agreed, and got 140 million yuan from the bank.
In the end, there was still a gap of more than 60 million yuan, so he engaged in the sale of houses and leasebacks, promising a 20% rate of return, which was actually a disguised illegal fundraising. As a result, more than 800 home buyers got on the set.
When he barely scraped together 200 million yuan, he started construction. However, when the house was just built to the seventh or eighth floor, more than 100 million yuan was spent on the construction of the building, and tens of millions of yuan were spent on the high interest paid to the evicted people, the tenants who sold the house, and the bank, so the funds quickly bottomed out.
In 1997, the bank sued the developer for two consecutive years and applied to the court to freeze its assets. In this way, the developer has completely become a poor egg. The high interest rate of the common people is gone, so they will settle accounts with him. Later, he found that it was useless to look for him, so he began to petition the government.
This project involves more than 1,000 households, more than 3,000 people, and as long as 10% of them are dispatched each time, more than 300 people, which is enough to "surround" the municipal government. Therefore, since 1998, there has been no interruption of the collection of visits to the central garden of the subway.
2. The usual approach doesn't work
In fact, the nature of this matter is very clear, that is, the project owner deceived the people and cheated the bank. According to conventional thinking, there are two ways. The first is to control the developer and force the developer to repay the money. But now the developer has no money, and it is useless to catch it, and the dead button still can't be untied.
Second, for the sake of social stability, the government will pay for it. However, the fiscal revenue in the municipal budget that year was less than 10 billion yuan, and the finances were already tight, and there was no money to cover them. Besides, the government can't do that if it has the money, because it doesn't make sense. Since neither path can be taken, things are frozen.
Everyone wanted to solve it, but they couldn't do anything, and they couldn't break the situation after more than 20 coordination meetings. All parties are glued, and there is no way.
3. The only way to break the deadlock is to reorganize
As I listened to what you had to say, I thought about it. The Metro Center Garden is located in the best area of Chongqing, and if a 100,000-square-meter house can be built, it can be sold for more than 400 million yuan at that time, which is worth the money.
But the problem is that more than half of the more than 200 million yuan that the developer has scraped together has paid all kinds of high interest, and now it is still in arrears of 164 million yuan in the principal of bank loans, 120 million yuan in compensation for demolition households and 120 million yuan in the purchase of houses sold back to tenants, and 30 million yuan in construction unit project funds, plus more than 60 million yuan in arrears of bank interest and people's interest and rent after 1997, totaling about 370 million yuan.
At the same time, to build a good house, you have to spend 60 million yuan in the future. If someone takes over, a total of 430 million yuan needs to be invested, and more than 400 million yuan can be recovered after the house is sold.
Restructuring pursues a win-win situation for all parties, and if the interests of any party are seriously damaged, the restructuring cannot be pushed. Specific to this project, the strategic restructurer is a "lifesaver", if not to make a lot of money, at least to be profitable; Bank loans are national assets, and they cannot be lost; It is not easy for ordinary people to make money, and they cannot be allowed to bear bad debts. Following this logic, I came up with a solution.
First, the principal of bank loans should be recovered, but the high interest rate will be eliminated. In the face of the real estate developers with empty gloves and white wolves, the banks are lending usury in violation of regulations, and they are still engaged in "cutting off debts", which is not standardized, and should be corrected and punished.
Moreover, in order to maintain social stability, the proceeds from the auction of unfinished buildings should give priority to paying off the debts of the common people and the engineering team. In that case, the principal repayment ratio of the bank's $164 million loan may be less than 10%.
Therefore, I told the bank that this enterprise is a "food" enterprise, and if it is restructured, the bank may still recover the principal and the normal interest prescribed by the state, so don't expect to charge high interest. On that day, after careful discussion, the bank accepted the 100% repayment of principal and interest.
Second, the 30 million yuan owed to the construction unit must be repaid in full, otherwise there will be a series of arrears of wages. In this regard, the construction unit is of course satisfied.
Third, the 120 million yuan compensation and house purchase money of the people will be repaid in full, but the high interest rate of 15%~20% cannot be counted. According to the central government's repayment policy of controlling the "three chaos" in the financial sector, the tenants who sell the house can only repay the principal. The demolished households will be repaid according to the compensation plus the bank's statutory interest.
Therefore, if the people have received 15%~20% interest for 3 years, then it must be deducted from the compensation. Overall, the part returned to the people, with principal and interest, is about 100 million yuan.
After these three subtractions, the project debt has been "reduced" from 370 million yuan to 210 million yuan. The strategic reorganizer only needs to pay 210 million yuan to get the property rights, and then spend more than 60 million yuan to build the house, and the total cost is only 270 million yuan. When the built house is sold, it should be able to sell for 300 million ~ 400 million yuan, which is generally profitable, and the reorganizer will naturally have motivation.
4. This "hot potato" state-owned enterprise should be taken first
The idea of restructuring is set, and the next most important thing is to find someone to take over. It stands to reason that it is profitable to deal with unfinished buildings, and if there is a private enterprise owner who is willing to take the lead, he must let the private enterprise do it first. But at that time, no one believed that there was "gold" in the unfinished building, and they all thought that it was a "hot potato" and avoided it.
Otherwise, the problem would have been solved long ago, and the people would not have had to petition for years and months, and the city government would not have had to hold meetings again and again to coordinate.
In fact, such a mess with many contradictions and complex problems can only be "universalized" by letting state-owned enterprises take over.
At that time, the person in charge of Chongqing Urban Construction Investment (Group) Co., Ltd. (hereinafter referred to as Chongqing Urban Construction Investment (Group) Co., Ltd. sat across from me. He also just joined the urban investment company.
I said to him: "You can pay the 210 million yuan, and you will take over the real estate tomorrow, and pay off the 100 million yuan owed to more than 1,000 households before the Spring Festival." ”
The person in charge listened to my instructions and looked surprised, obviously unwilling to wade into the troubled waters. He said: "Mayor Huang, you don't understand the situation...... I interrupted him: "I didn't understand in the past, but now I understand, you just do what you instruct!" ”
He wanted to say something, but when I said this, it was difficult for me to speak again in the face of me, the new deputy mayor. The others stopped talking, but whispered to each other.
In just over an hour, I made such a decision, and in retrospect, many people must have felt that it was a rash and even absurd decision at the time.
5. Happy ending
The matter was decided in mid-November 2001. In the following month, 100 million yuan owed to the people was distributed to more than 1,000 households.
In January 2002, when the Chongqing Municipal People's Congress was closing, the demolition households in the central garden of the subway came to the city government again. They sent a plaque to thank the city government for helping them get justice, but they had fulfilled their wish for many years! It was their last visit, and the matter was uneventful.
There was a bit of drama in what happened later. In fact, the city investment company did not really take out 210 million yuan in cash.
To pay off the 100 million yuan of the people, of course, the urban investment company directly paid for it. However, due to the change of the more than 80 million yuan owed to the bank, the bank has great confidence in the new owner of the urban investment company, and is not in a hurry to immediately recover the loan principal, and is even willing to lend tens of millions of yuan to the urban investment company to help it build the building well, and the urban investment company can wait for the housing sales to be realized before repaying the money to the bank.
The 30 million yuan project money owed to the construction unit, because the construction unit was not in a hurry to ask for money, only asked to continue to undertake the project, so that the construction unit finally got far more than 30 million yuan.
Therefore, what the urban investment company really needs to pay immediately is 100 million yuan for the people. The city investment company also made a lot of money by disposing of this unfinished building project. In the end, it became a happy thing for all.
Such a specific reorganization operation has resolved a long-pending backlog of petition cases, which has not only shared the worries of the municipal party committee and the municipal government, but also directed the state-owned investment platform to rescue the suffering, showing due responsibility.
6. A big breakthrough from point to surface
In fact, at that time, there were more than 70 unfinished buildings in the main city of Chongqing, such as the central garden of the subway, which were all "hard bones" that were difficult to bite, accounting for the majority of the more than 120 "four-long projects".
They have accumulated more than 20 billion yuan in bad bank debts and a large number of social contradictions. From 2001 to 2002, when you stood on the roof of the Chongqing Marriott Hotel, you would find that in the most prosperous area of Chongqing, there were four or five unfinished buildings around almost every high-rise building.
The Metro Center Garden is just one of the ordinary examples, but its successful disposal serves as a good example.
Since then, state-owned enterprises have begun to intervene in the disposal of unfinished buildings. When we saw that state-owned enterprises had dealt with more than 10 unfinished buildings, private enterprises also found that the unfinished buildings were not all "hot potatoes", and there was also "gold" in the disposal process, so they followed up, and later even some foreign-funded enterprises such as Morgan Stanley also got involved.
In the following two or three years, Chongqing's unfinished buildings were quickly digested through debt restructuring, and finally turned into a beautiful cityscape.
Second, the six principles of real estate market regulation
Looking at the whole world, from a large country to a small city, it is necessary to have a clear positioning for the real estate industry.
First, it is a pillar industry. Whether a city's development is in the primary stage or an advanced stage, whether the city has a history of hundreds or decades, no matter how the urban planning is adjusted and changed, the proportion of real estate industry in GDP is generally about 5%, constituting a pillar industry.
Second, the real estate industry is a leading industry. If the real estate industry develops well, it will drive the development of dozens of industries such as steel, building materials, home appliances, and home decoration, and then drive the sustained and stable growth of the entire national economy; On the contrary, if real estate fluctuates sharply, it will have a major impact on the economy, and even cause a subversive impact.
Third, the real estate industry is a livelihood undertaking. Food, clothing, housing, transportation, living and working in peace and contentment, "living and living" is the key to people's livelihood, and the most concerned thing for the people is the housing problem.
Fourth, real estate is a capital good. With the changes of the times and the continuous development of the national economy, real estate will generally maintain and increase its value, unless it encounters major disasters such as war, plague, earthquake, and economic crisis. Under normal circumstances, more than 70% of the household wealth of China's urban residents is represented by housing, and real estate has become an important symbol of people's family wealth.
Fifth, real estate is a financial product. Seventy or eighty percent of the money people pay to buy houses depends on bank mortgage loans, and real estate developers will also take out mortgages from banks in a high proportion when building houses, and financial debts often account for 60 or 70 percent of the total value of real estate; if the real estate industry collapses, there will be a large number of residents' assets and bad bank debts, and even trigger a financial crisis.
In short, the real estate industry is related to the national economy and people's livelihood, which is not only a development issue, but also a people's livelihood issue, playing multiple roles such as people's livelihood goods, capital goods, and financial goods, and must ensure stable and healthy development.
The regulation of the real estate market has its own internal laws, involving fundamental factors such as the total amount of real estate, the root of the land, the bank, the tax policy, and the effective supply of real estate enterprises.
It is necessary to start from these fundamental factors and formulate long-term, stable, and systematic policies and measures, rather than blindly adopting short-term, fragmented, and partial measures, otherwise it will be impossible to form stable market expectations, which will inevitably have an impact on the people's living habits, values, and family stability, and will also cause damage to the financial market and the real economy.
Therefore, we must make good use of long-term and stable laws, regulations and institutional arrangements to restrain and regulate the development of the real estate market, and must not interfere with the long-term policy trend because of some short-term problems. Based on the above thinking, in practice, we have gradually formed six principles for the regulation of the real estate market.
First, the proportion of real estate investment should be strictly controlled and kept at about 25 percent of fixed asset investment.
As a commodity, commercial housing is affected by the law of supply and demand, and the price rises when the supply exceeds the demand, and the price falls when the supply exceeds the demand. To maintain a rough balance between supply and demand, the key is to determine the total amount of real estate development.
From the perspective of domestic and foreign practice, whether a city is in a period of steady development or a period of rapid growth, real estate investment should be controlled at about 25% of the total fixed asset investment of the whole society.
Even in cities like Paris and New York, which have entered a mature stage, because the total amount of fixed asset investment has fallen, industrial investment has fallen, and real estate investment has also fallen, the proportion of real estate investment will eventually remain at this level.
By controlling real estate investment at about 25% of fixed asset investment, the total amount of real estate development can be controlled at the macro level. From the perspective of industrial development, if a city exceeds this proportion for a long time, the real estate sector will absorb too much capital and capital, and the real economy will be weakened.
The long-term structural imbalance between the real estate industry and the real economy will affect the sustainable development of cities.
From the point of view of urban supporting conditions, if more than 60 billion yuan of a city's 100 billion yuan investment in fixed assets is invested in real estate, and real estate investment accounts for as much as 60 or 70 percent of the total investment in fixed assets, although real estate construction is going on at a rapid pace, the investment in urban infrastructure and the industrial and commercial real economy has not kept up, and in the future it will either be an uninhabited "empty city" or an uninhabitable "unfinished building."
Based on this, since 2002, Chongqing has always regarded the proportion of investment of about 25% as a "hard lever" to regulate the real estate market, and has achieved the regulation target every year.
Article 2: Rationally regulate and control the amount of land supply, and plan the built-up area according to 1 square kilometer per 10,000 people.
Planning is the leader of urban development. From the perspective of planning, the total amount of real estate development and construction of various types is determined by the amount of urban land supply. What is the appropriate scale of construction land in a city?
It should be balanced according to 100 square meters per person and 1 square kilometer per 10,000 people, and 100 square kilometers of urban area for 1 million urban population is sufficient.
If a city obviously gathers 10 million people and only supplies 500~600 square kilometers of land, then the city's land price will rise wildly due to the shortage of supply, which will cause the housing price to rise too quickly and cannot meet the residential needs of the people.
Conversely, if a city with a population of 500,000 supplies 100 square kilometers of land, it will definitely cause idle waste of land resources, resulting in "empty cities" and "ghost towns".
As a city manager, we must pay attention to controlling the proportional relationship between urban population and urban land, that is, the urban built-up area is roughly allocated according to 1 square kilometer per 10,000 people, which is the top-level design of urban planning control.
Some cities often give about 30% to industrial land, real estate development construction land only accounts for 15%-20%, deducting commercial housing facilities land, residential land only accounts for about 10%, which causes a serious shortage of residential land, which is also an important reason for the phenomenon of land kings and high land prices in recent years.
In short, if the proportion of these parameters in a city is unbalanced for a long time, either it is lavish in land use, and the developer's temperament buys land and builds houses, and the total supply of real estate exceeds demand; Either there is a shortage of land, resulting in a severe shortage of commercial housing and soaring housing prices.
Article 3: Reasonably regulate and control land prices and control them at about 1/3 of the current housing prices.
Housing is a real estate attached to the land, the high land price, the house price will inevitably be high, the low land price, the house price will naturally be low, the land price is the fundamental factor that determines the house price.
Many people believe that in the past 10 years, M2 (broad money supply) has risen from more than 10 trillion yuan to more than 100 trillion yuan, an increase of more than 10 times, and housing prices have also risen almost 10 times.
But as everyone knows, why didn't the firewood, rice, oil, salt, sauce, vinegar tea, which is also closely related to the lives of ordinary people, rise 10 times? This shows that monetary inflation is only a necessary condition for the rise of house prices, but not a sufficient condition, and that it is an external factor rather than an internal one.
If only the external factor of the money market exists, and the internal factor of land price does not cooperate, then the house price will not rise if it wants to. Therefore, the key to controlling housing prices is to control land prices.
The mainland urban construction land market implements an auction system, and the design of this system requires that the highest price is awarded. The income from land transfer is an important source of local fiscal revenue, and the government cannot deliberately lower the land price and engage in the transfer of benefits, resulting in the income from land appreciation flowing into the pockets of developers.
Of course, the government must not be profit-seeking, and cannot hope that the higher the land price, the better, and let the land price rise wildly, resulting in a situation where "flour is more expensive than bread".
You must know that high land prices will inevitably lead to high housing prices, and high housing prices will not only make the people dissatisfied, but also weaken the development of the real economy of the secondary and tertiary industries, which will outweigh the losses after all.
Generally speaking, 1/3 of the total value of a house is the land price, and 2/3 is the construction cost (including various costs such as construction, loan interest, publicity and advertising, and the developer's reasonable profit).
Therefore, it is more appropriate to control the floor price at about 1/3 of the current housing price. With this "trump card", housing prices will be better controlled.
Of course, if the auction price of the floor is too high, the wise move of the government is to use land reserves and other regulatory tools to increase the supply of land in the surrounding areas.
In short, a basic principle is that the government should follow the laws of the market and neither deliberately lower land prices, nor deliberately reduce land supply and deliberately push up land prices.
Article 4 Regulate the source of funds for the approval of land leasing by real estate enterprises, and the money for buying land is not in debt, but must be the real estate enterprises' own funds.
The starting point of real estate development is land leasing. In order to avoid the chaos of land speculation by real estate developers at high land prices, high-debt development, and the phenomenon of land kings emerging one after another, the key is to standardize the source of funds for real estate enterprises to lease land.
Local governments should control the sources and channels of funds for real estate enterprises to purchase land, and prevent real estate enterprises from "carrying banks" - relying on the high leverage of banks to acquire land; As long as the source of funds for real estate enterprises to acquire land is strictly reviewed, real estate cannot be speculated.
The debt ratio of Chinese real estate developers is often as high as 80%~90%, which is related to the high debt in three links in the development process of real estate projects: one is the high debt of land leasing funds, the second is the high debt of the development and building link, and the third is the high debt of the pre-sale housing link.
The debt ratio of real estate developers in developed countries in Europe and the United States and Hong Kong, China is generally around 40%. The real estate industry is an asset-heavy industry, and it is generally not suitable for high debt operation, and the key to achieving this is that the money for real estate developers to buy land must be their own funds, and the money for buying land is not in debt.
Before all developers acquire land, they should conduct a comprehensive "physical examination" of their land purchase funds, and their sources of funds cannot be bank loans, trust funds, let alone random fundraising, usury, and various Internet P2P (peer-to-peer network lending) platform funds.
Article 5 It is necessary to standardize the leverage ratio of mortgage loans to the common people, and not to arbitrarily restrict purchases and loans.
From the perspective of ordinary people's mortgage loans, an effective way to regulate the real estate market is to design a reasonable ratio between zero down payment and zero mortgage. If there is zero down payment, it is very easy to cause a bubble and cause a crisis; If there is zero mortgage, it will cause the real estate market to suffocate.
For example, after 2000, in order to stimulate the economy, the United States engaged in subprime loans and zero down payments, which triggered the global financial crisis in 2008.
After the crisis, the Obama administration overdid it at first, not only stopping subprime loans, but also stopping home mortgage loans for the entire real estate industry in the United States, and after two years, it found that zero mortgages hindered the development of the real estate industry in the United States, so mortgage loans were resumed in 2010, but the down payment and mortgage ratio was adjusted to 50:50.
Judging from the actual situation in the mainland, a differentiated housing mortgage loan policy can be implemented: for the first house, the ratio of self-owned funds and bank loans is more appropriate to be opened at 28 or 37; the second suite, open in half or four or six; The third home must be purchased in full, leaving no chance for speculation.
After all, no matter who buys a house in full, it will not have an impact on the national economy. Financial risk comes from excessive leverage, and a non-leveraged home purchase will not bring bubble risk.
Generally speaking, all kinds of administrative measures to restrict purchases and loans are important, but as long as the proportion of mortgage loans is well controlled, the authenticity of personal credit is managed, the sources of mortgage loans are well managed, and the situation of home buyers using down payment loans, consumer loans, housing mortgages, etc., to form highly leveraged mortgages with actual zero down payment, the regulatory effect will be much better.
Article 6 Rationally promote the pricing principle based on the area of residential commercial housing units.
There are two sales pricing methods for commercial residential houses: one is the European and American way, which is generally priced by the area within the suite, that is, the actual area used by the household; The other is the Hong Kong method, which is based on the floor area of the residence.
Since the reform and opening up, the pricing method of commercial residential housing in mainland China has generally adopted the pricing method of selling properties in Hong Kong, which is based on the construction area, and the total price of each commercial house is equal to the total building area multiplied by the unit price per square meter of construction area.
It stands to reason that there is not much difference between the two algorithms, because once the construction area and the area of the suite of all buildings in a residential community are determined, the total price of a suite, whether it is calculated in terms of the area of the suite or the floor area, should be the same.
However, in the practice of actual urban real estate development, sales and management, there will still be great differences, which are manifested in the following three aspects.
First, the price of the same house is based on the floor area and the area within the suite, which will produce a corresponding discount difference, so that the buyer has a feeling of relatively low price, which is conducive to the sale of houses by real estate developers.
Second, the construction area of each house and the area in the suite, there can be a difference of 1:0.8, 1:0.75, 1:0.7 ratio in the design and construction, based on the area of the suite, which will stimulate real estate developers and architects to reduce the public area as much as possible, increase the proportion of the area in the suite, and improve the housing rate of residents.
Third, the annual property fee to be paid by residents is generally calculated according to the area purchased by the house, and the construction area will be 20%-30% more than the area in the suite.
In short, we believe that the calculation of the area in the suite and the area actually used by the people is conducive to the overall design of the house to be more intensive and practical, which is conducive to curbing housing prices, reducing the rate of housing price rise, and also reducing property fees and reducing the apportionment of property costs in common areas.
Taking into account the fact that the floor area of commercial residential buildings is generally used in all parts of the country, Chongqing has adopted a dual-track pricing method based on the area of the suite and the reference valuation of the construction area. In practice, this approach has been supported by the general public.
Typography | Edited by Shen Wangwang | Zhengfeng Rotating Editor-in-Chief | Xia Kun