During the decade of 2012-2021, the real estate industry in china grew rapidly, and the “house-to-house” became the backbone of city regulation。
In terms of overall trends, the commodity housing market is still on the rise despite the occasional lows in 2014. Compared to 2012, there was a 61. 2 per cent increase in commercial house sales and a 182 per cent increase in sales. Data from the national statistical office also indicate that the average price of commercial housing was $5,790. 99 per square metre in 2012, compared to $9860 per square metre in 2020。
On 14 september, in a series of press conferences on the theme “china's decade”, the deputy minister of housing and urban-rural construction stated that the supply of housing had continued to increase during the decade, with a total of 13,234 million square metres of commercial housing sold, 2. 2 times the size of the previous decade。
The average price of a commodity house is about $10,000
Apart from the decline in individual years, the rise in volume prices has been a major feature of the chinese building market for many years. In 2012, there were 1,113 million square metres of commercial housing sold nationwide, with a sales volume of $6. 44 trillion, rising to 1,794 million square metres and 18. 2 trillion yuan in 2021。
The national statistical office has not yet published data on the average prices of commercial houses in 2021, but on the basis of the volume of sales in 2021 and the area of sale, the average prices of commercial houses in that year exceeded 10,000 yuan/m2. However, the view was also expressed that commodity housing was not a standardized product, that its prices were highly correlated with the location and quality of its own construction, and that the indicator of average prices should not be overvalued。
In recent decades, the domestic land market has also increased substantially, from 2. 85 trillion yuan in 2012 to 8. 7 trillion yuan in 2021, and the number of cities joining the “100 billion yuan annual land transfer club” has grown steadily, even as several cities have entered the “200 billion yuan club”。
The regional disparities in the chinese housing market are also evident, with some urban real estate markets showing signs of overheating during the past decade, with large price increases on the ground and speculation. Since the central economic work conference at the end of 2016, when it first came up with the idea that “houses are for housing, not for fire”, “houses for fire” have become a dominant tone for real estate regulation in china。
“assure that `houses are used to live, not fire,' the positioning is unswerving, as city-driven, taxonomy guides promote the smooth and healthy development of the real estate market. The implementation of long-term real estate efficiency mechanisms, the implementation of the primary responsibility of municipalities and provincial regulatory responsibilities, the establishment of a sound housing market regulatory system, the firmness of land prices, the stability of house prices and the stability of expectations。
After the “renovation” of 1998, the market for commercial housing became a major player in china's housing sector, but the construction of the housing security system was particularly important for low-income disadvantaged groups。
Kang wong-ryung stated that housing issues were linked to the well-being of the people and that the government must “take up the seat”. We emphasize the need to improve the “two systems”, the housing market system and the housing security system. The safeguard system is more of a complementary role for governments。
In june last year, the office of the state council issued its opinion on accelerated development of secure rental housing, which for the first time defined the top-level design of the housing security system at the national level, proposing to accelerate the improvement of the housing security system, which focuses on public rental housing, guaranteed rental housing and community-owned housing. “the decade was the largest and highest investment in the construction of secure housing in our history. Over the past 10 years, a cumulative investment of 14. 8 trillion yuan has been made in the construction of more than 59 million housing units for all types of sheltered housing and for the upgrading of squatter settlements。
Over 43 million units have been built over the past decade for the rehabilitation of squatter settlements throughout the country. Over the three-year period 2016-2018, the national stock of stock improvements remained at more than 6 million. Although there has also been widespread discussion about the “helping to boost the price of urban housing on the 3rd and 4th lines”, the upgrading of sheds has led to both improved livelihoods and efficient investment and consumption of materials, renovations, household electricity, etc., and related industrial development upstream and downstream。
Pilot construction of marketable communist houses on collective land
Over the past years, collective land has not been able to develop real estate, state land is the only source of residential land for commercial housing, and prices of hot urban land are constantly rising owing to scarcity and often volatile housing prices。
In august 2017, the former ministry of land and resources, the ministry of housing and urban and rural construction launched a pilot programme for the construction of rental housing using collective land, which identified the first pilot projects for the construction of rental housing using collective land in 13 cities, including beijing, shanghai, shenyang, nanjing, hangzhou, hoi fat, xiamen, zhengzhou, wuhan, guangzhou, fushan, chaoqing and chengdu. The programme emphasizes that collective rental housing is subject to the relevant laws and regulations and lease agreements and may not be sold on rent. A collective rental dwelling may not be sublet。
According to the housing security plan for the fourteenth five-year period of beijing, published in september 2022, construction of collective land rental housing has been vigorously pursued in beijing. By the end of the thirteenth five-year period, construction of 44 collective land rental housing projects had begun in beijing, more than 57,000 housing units had been provided, and 13 and 3822 housing units had been renovated and completed。
In addition to the construction of secure rental housing using collective construction land, in late 2018 three collective construction sites in the town of hai, beijing dynasty, were announced on the basis of a declaration of concessions, which would build joint property and sell them abroad. This was also the first attempt in beijing to build communal property through collective land construction, opening up new avenues of land supply for policy housing。
The billboard announcement shows that, in accordance with the mandate of the national people's congress and the relevant provisions of the beijing city pilot scheme for the management of collectively operating construction land, the billboard is issued in the same way as the state-owned construction land. As of january 2021, the three plots had been successfully relinquished and, according to the land plan for the project, the three plots would be built into communally owned houses at an average sale price of $29,000 per square metre, including full renovation costs。
The beijing daily news has reported that there is no difference between collective property units on which collective land is built and communal property units on which state land was originally owned, as well as 70 years of ownership, individual ownership of part of the property and non-trade for five years。
“community-owned housing helps residents to own property at a lower threshold.” in a series of press conferences on the theme “china's decade”, kang wan rong stated: “in april 2014, we launched a pilot project on the development of communal property housing in six cities, including beijing and shanghai; in september 2017, the pilot was deepened. By the end of 2021, the city of beijing had accumulated approximately 83,000 communally owned housing units and shanghai had contracted 136,000. Community-owned housing helps residents to own property at a lower threshold.”
