IMPACT OF COVID-19 ON HOUSING MARKET AND DEVELOPMENT TEND IN POST-EPIDEMIC PERIOD

Cai Zhen

Abstract: For aggregate relation, the COVID-19 has a short-term impact on the development of China's housing market, but the housing market recovered significantly from February to March of 2020. For structure, the COVID-19 leads to the differentiation trend of housing market: the resources of development market are further concentrated to the head real estate enterprises, while the land market returns to the first-tier cities and hot second -cities; house becomes the accelerator of personal income distribution and wealth distribution; the long-term rental apartments with different capital operation modes are divided under the test of the epidemic situation, while those with long capital chain and wide coverage may be eliminated during the epidemic period. Under the epidemic situation, the jump of real estate market in Shenzhen has formed a paradox with the downward trend of the whole economy and finance. We believe that the paradox is caused by differentiation: the high-net-worth group firstly promote the rise of housing prices in Shenzhen, then the middleincome group joined in this game, of course, the whole process cannot do without the support of credit funds. According to the differentiation trend and the emergence of bubbles in some areas, we propose the following policy recommendations: First, the goal of housing policy shall shift from promoting housing supply in the past to ensuring the housing demand of vulnerable groups and middle-income groups, and strive to solve the problem of unbalanced development of housing market. Second, the supervision ability of housing rental market shall be improved, especially the supervision ability of housing finance. Third, we shall adhere to the principle of "housing residence instead of vicious speculation", maintain the policy stability and restrain the housing price bubble.

Keywords: COVID-19; Housing Market; Long-term Rental Apartment; Property Bubble