I collect gold fingers in the heavens

Chapter 633 The Importance of Real Estate

Wu Siyuan didn't have much interest in the real estate industry.

Obviously, the bubble in the real estate industry has become too big due to hype. Although the higher authorities have always wanted to make a soft landing in real estate, judging from the current situation, the possibility of a hard landing is getting bigger and bigger.

Anyone with a discerning eye knows that the real estate industry cannot grow a rabbit's tail.

How could Wu Siyuan spend such a lot of money on this industry!
Could it be that Wu Siyuan really thinks there is too much money?
However, as the level of the agencies that came to visit became higher and higher, more and more leaders came to [Superior Group] to have a symposium, and when they vaguely expressed some ideas, Wu Siyuan found that the above did not attach great importance to real estate.

Wu Siyuan asked [Four-Armed King Kong] to obtain relevant information about domestic real estate. After a look, he realized why the higher authorities paid so much attention to the real estate industry.

Land finance is secondary.

The more important reason is employment.

It is an exaggeration to say that the industrial chain related to real estate has fed more than [-] million people in China.

The domestic population is about 14 billion, and more than one-fifth of them rely on real estate-related industrial chains for their livelihoods.

As long as buildings made of reinforced concrete, such as bridges, high-rise buildings, roads, etc., all belong to real estate, which is the so-called civil engineering industry.

According to the information released by the Bureau of Statistics in 2018, there were 7072.4 million people directly employed in the real estate industry and the construction industry, accounting for 1/19 of the country's population at that time.

If commercial real estate is unsustainable, most of the 1800 million people will be laid off. Relying on large infrastructure and affordable housing, they can support up to [-] million people, or even less.

Calculated according to a group of families (2-3 people), the total indirect real estate population may be around 2.5 to 3 million people.

Real estate drives more than 500 industries and more than 2000 majors.

The upstream industry involves iron and steel, non-ferrous metals such as copper and aluminum, machinery and equipment such as Sany Heavy Industry, and chemicals such as petrochemicals and plastics.

Midstream industries mainly include primary land development and infrastructure construction, building materials, construction and decoration industries, as well as transportation, financial and intermediary services.

The downstream industries involve home appliances, light industry manufacturing, decoration, public utilities such as airports, high-speed rail, electric power, water, gas and other industries.

It is no exaggeration to say that real estate can be said to be the mother of all domestic industries.

Real estate has developed rapidly in China for 20 years. During this period, it has built a very long industrial chain centered on itself. Once the industrial chain breaks suddenly, the impact will be unimaginable.

It's not that the higher-ups don't know that real estate is too big to fall into the national economy, but it will take time to loosen the ties.

But in the current situation, it is becoming more and more difficult for China to exchange time for space in the real estate industry.

This is also why, in the beginning, [Super Group] was only approached by a few places to intervene in the local land development market, but the level of institutions involved later became higher and higher?
There is no other reason.

At the current stage of development, the real estate industry is too important.

If the real estate lands hard, the impact on the economy will be tsunami-level.

It's not like this didn't happen.

In 92, Qiong Province had a real estate bubble and a hard landing.

At the beginning of 1992, the real estate market in Qiong Province suddenly heated up, and a large amount of money was invested in real estate. At the peak time, more than 655.8 real estate companies appeared on this island with a population of less than [-] million.

The government, banks, and developers have formed a tight iron triangle.Some houses have even been sold several times while still in the stage of design drawings.

These companies are like playing "pass the drum", each player wants to pass the "flower" to the next person before the game is over.

Of course, such a game cannot be played forever.

In June 1993, the higher authorities announced the termination of real estate company bosses and full control over bank funds entering the real estate industry.

The enthusiasm for real estate in Qiong Province, which has been advancing all the way, was suddenly suppressed. Developers fled or closed down one after another, and the non-performing loan ratio of many banks was as high as 60%.

Starting in 99, it took nearly seven years for Qiong Province to deal with the backlog of real estate until the work was basically completed.

This is still the impact of real estate in a province.

It took seven years to digest.

But what about the whole country?
No one dared to imagine.

But the history of Japan can be used as a reference.

After the Plaza Accord, Japan’s exchange rate skyrocketed, and the property market plummeted. How many people’s wealth disappeared overnight, owed huge debts that could not be repaid, and finally went to the rooftops. Japan has not developed for [-] years because of this, and it is called a lost country. Thirty years without desire, thirty years without desire, is a hopeless and lonely society.

After Wu Siyuan learned about it, he felt that he could not follow the old path of Japan.

Indeed, under the current circumstances, real estate cannot fail.

But [Chaoqun Group] entered the real estate industry, borrowed from banks, and then bought land for various places to maintain local land finance.

But this is a palliative, not a cure.

[Chaoqun Group] If the price of commercial buildings or office buildings built by [Chaoqun Group] remains high, there will be no user support.

The public has already been emptied of six wallets, and the six provident fund accounts of the public cannot be used.

Confidence is what matters.

If the built real estate cannot be sold, it will be a huge loss if it is left there.

[Superior Group] We have a lot of money, so we don't have the problem of starting work without money.

In this case, [Superior Group] can last for a long time.

But it doesn't make sense.

[Super Group] A lot of meaningless funds are deposited here, which is just a huge waste.

If you want to sell the house, you can't let the higher-ups do another wave of [increasing prices to remove inventory].

Yes.

Did not see.

The price of the house can't be sold.

But as long as the house price rises, and people in the society think that the house price will rise, then as many houses as there are can be sold.

But I came here once before [price increase to remove inventory]!
Now do it again.

Whether it has any effect will not be said.

But for young people in society, the blow will be even heavier.

Young people without a house will not get the blessing of their mother-in-law when they get married.

And social animals with a salary of several thousand yuan a month ago, after dealing with food, drink, housing and transportation, there is not much money left on hand.

The rest of the money.

Those with girlfriends should use it on various festivals and various newly created festivals—for example, the first cup of milk tea in autumn.

Without a boyfriend, all kinds of soul and body trips, as well as a variety of cosmetics and clothing, these costs are not low.

How many people are rich in the end?

Therefore, the higher the housing price, the lower the marriage rate in society, the higher the divorce rate, and the birth rate has dropped to such an extent that I dare not show it [see people]!
In this case, every move in housing prices will affect the whole body.

(End of this chapter)