Chinareal estateIt has become one of the major economic issues. Regarding the future of China’s real estate market, Zhu Min, vice president of the China Center for International Economic Exchanges and former vice president of the International Monetary Fund, accepted a media interview at the Boao Forum. to Asia on the 28th and pointed out that China’s real estate is expected to decline this year, but there will be gradual structural changes, and these changes will be carried out through the market.
Zhu Min said that after thirty years of real estate growth in China, there is obvious real estate oversupply. The total demand for real estate in 2019 was 1.7 billion square meters, and last year it was about 1.1 billion square meters. No country in the world has been able to achieve this in three years. This dropped to about 35%, “This is a big joke.”
Zhu Min analyzed from the perspective of supply and demand that there are several reasons for the above: First, the overall real estate demand is excessive, the demand structure has changed, and the demand is insufficient. China’s per capita housing is already 42 square meters, which is basically lower than Europe. Slightly lower than the United States. This level is very high and will increase per capita in the future. Therefore, the real estate must be rebuilt and the structure adjusted;
Second, on the supply side, existing policies provide credit support to help companies complete reconstruction methods and increase sales. So far, the demand side has not been fully opened, and there are still various obstacles;
Third, policies need to promote the transformation of real estate structure. There is a lot of pressure to buy a home now, this is because there are no longer term rentals. Therefore, there is a need for policies to comprehensively promote institutional changes across real estate and promote end-to-end asset management, digitalization, electronics, et cetera.
Zhu Min said that he has heard bad news from some companies, but he believes that through restructuring, the entire market will move towards a healthy home that is in line with China’s actual market conditions.
As for the outside world’s concern about the impact of the US Federal Reserve’s interest rate cuts, Zhu Min believes that US inflation is now relatively sticky, the labor market is still tight, and growth is still is also relatively stable and upward. That’s why the Federal Reserve will cut interest rates so quickly and keep them there. relatively high levels of inflation,Rate of interestlevels, which is stressful for financial markets and risks are rising. However, inflation levels in China are not high, interest rates are falling and the economy is relatively stable.exchange rateTaking market demand as the standard, it is a direct expression of good macro monetary policy and the interest rate market and exchange rate market.
china(tagstotranslate)real estate