Challenges, Trend Changes and Responses to the Development of the Real Estate Industry in 2022
2022-01-14: [Article Link] Challenges, developments and responses to real estate development in 2022
Investigative Studies No. 4 of 2022 (6518)
Summary: The transition to real estate in 2021 was more difficult and had an impact on the smooth and healthy development of the national economy. Looking ahead to 2022, market instability may continue to affect real estate demand, land turnover affects new start-up of real estate, real estate enterprises remain under considerable financial pressure, industry profitability is low, high-leverage swing business models remain to be transformed, and indicators of real estate sales, new start-ups, investments and so on are expected to decline. It has been estimated that real estate currently contributes directly and indirectly to about 20 per cent of GDP, supports more than 50 per cent of local revenue, provides about 15 per cent of non-farm employment, constitutes about 60 per cent of residential household assets and generates about 20 per cent of social financing. Keeping the economy within reasonable space avoids excessive declines in real estate sales and investments. Real estate management policies need to be optimized over time, with a focus on restoring land supply and trade, effectively alleviating the financial difficulties of real estate enterprises, significantly increasing the supply of secure rental housing, and promoting a virtuous cycle and healthy development of the real estate industry.
Keyword: Real estate, steady growth, healthy development