Hous­ing sys­tem should cover all res­i­dents

China Daily (Latin America Weekly) - - Views -

China is ob­serv­ing the 40th an­niver­sary of re­form and open­ing-up, but its real es­tate re­form is just two decades old, as the hous­ing re­form started only in 1998. Since the launch­ing of re­form and open­ing-up, China’s av­er­age ur­ban res­i­den­tial area has in­creased from 6.7 square me­ters in 1978 to more than 38 square me­ters in 2018, and av­er­age ru­ral hous­ing area has in­creased from 8.1 square me­ters in 1978 to 45 square me­ters in 2016. In 1978, the real es­tate sec­tor’s con­tri­bu­tion to China’s GDP was es­sen­tially nil, but by 2017 it had grown to 6.5 per­cent of GDP – the fig­ure had reached 6.8 per­cent by the end of Oc­to­ber 2018. This was made pos­si­ble by over­all re­form and open­ing-up, es­pe­cially the hous­ing sys­tem re­form.

The real es­tate sec­tor, how­ever, is also fac­ing many prob­lems, which means re­form should be fur­ther deep­ened to en­sure the steady and sus­tain­able de­vel­op­ment of the real es­tate mar­ket.

The real es­tate mar­ket was over-heated be­fore Au­gust this year. It be­gan to cool down in Septem­ber, as the hous­ing sales vol­ume has shown neg­a­tive growth from Au­gust to Oc­to­ber and the new con­struc­tion rate has re­mark­ably de­clined since Au­gust.

Be­sides, the gap among re­gional real es­tate mar­kets is grad­u­ally nar­row­ing and the realty mar­ket in some hotspot cities is cool­ing down. But the realty mar­kets in some cities, par­tic­u­larly those in the cen­tral and western re­gions, seem to be warm­ing up. And hous­ing prices in city clus­ters are re­mark­ably higher than in sin­gle cities.

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