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Ren Zhijiang: House price falls whose loss is the biggest loser is developm
From;  Author:Stand originally

Ren Zhijiang of president of Hua Yuan group

House price drops and estate market worsens, what most person thinks to suffer lose is development business nevertheless just, because this will save city consider as,helping estate business, so that the government comes on stage,any policy that are helpful for market development can are to be to saving estate to develop business by mistake.

It is with China exemple, the house that countrywide town has built makes an appointment with 14 billion square metre, the housing that builds complete every year is made an appointment with 600 million - 700 million square metre. The surface looks, this 600 million - the just develops business profit that price fall affects the commodity house of 700 million square metre or pecuniary loss, what cause actually is the fall of the effect of wealth of the asset that put an amount of 14 billion square metre.

Some of person thinks to want only blindly is the housing price that lives oneself drops to won't have a loss, this is mixed think extended hold stock, stock price drops won't have a loss likewise foolish.

The people of the requirement returning a house that when the room value that sees 10 thousand families please drops, appears and make trouble, they want to live oneself only, so does house price drop why to want to return a house? Either don't have a loss from what live? Look the explanation is illogical this view.

China has the proportion that has housing property right oneself to be as high as 85%(to still be not calculated rural) of China, that is to say the property value of the great majority family that what the wave motion of house price affects above all is Chinese town, is not to affect development business only.

What affect next is the state-owned land price that country or city have, the government of district of touchdown of mark of price of sell one's own things of land or people have some land money. When the price rises, governmental earnings increases and the communal pay that local dweller wins accordingly increases, covert the consumptive capacity that increased a dweller and fortune. And the price of land drops and flow when patting, the income that can affect local government naturally and pay ability, turn and from reduce the consumptive expenditure that the resident affects on these public spending.

Why did many local government publish the many policy that help city? They are to saving their above all, because did not have development business those who turn to be consumption is product of building of translate into of land of this group general, current, so the profit that the government cannot realize land, cannot realize the urban construction such as the investment of infrastructure and transformed communal defray.
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