Is it really good to rely too much on the real estate industry to drive the economy?

China's economy is currently heavily dependent on real estate. There is reliable information. Nearly 50% of China's local government revenue comes from land sales.

This has to be said to be a very surprising number. That is, for now. China's economy as a whole. Lack of growth rate. One of the reasons for this is the over-reliance on real estate.

If a country is overly dependent on real estate, it will lead to a deformed situation in the real estate business. Especially for many places, selling land has become their main reliance. There is not much interest in other economic growth points, and in the early years, real estate money came very quickly.

And it can effectively stimulate the local economy, so many cities have adopted this method. In this way, it can be said that the chicken is killing the egg.

Presently. The market has begun to squeeze the real estate bubble vigorously. This makes a lot of places miserable.

Financially indebted. It's funny. Local governments are looking for new economic growth points and are focusing on revitalizing the economy, rather than focusing on real estate.

But this chronic disease is now taking shape. It's not easy to change in a short period of time.

At present, China's economic growth in the first three quarters is: Real estate as a whole is in the process of negative growth, which has a drag on economic growth, indicating that China can drive the economy without relying on real estate.

House prices have peaked. The state encourages people to buy cars. Vigorously develop new energy vehicles. Use technology to drive the economy. Encourage the development of science and technology.

According to the theory of economics, real estate and consumption can be said to constitute a pair of leverage, if the housing is not how to release people's spending power. Every young person is worried that they will not dare to spend boldly when they do not have a house to live in, which will drag down the economy in the long run.

Therefore, we must not cover the prosthetic limb, so that our economy is overly dependent on real estate, otherwise even if you pull the economy up, the quality of hydrogen will not be improved. Eventually, once the real estate bubble bursts, the entire economy will fall into a long recession.

Hello friend, yes, so to speak.

From the tax data of many cities, it can be seen that the proportion of real estate to the credit spine is very high.

There are very few other industries.

It takes a great deal of effort to change this situation.

I think it's still more difficult, because the real estate industry is still very strong, and if there is no him, I think it will take a long time to have a new industry.

The economy can be pulled up without relying on real estate. said that what could not be pulled up touched his personal interests.

Housing covers a high proportion of real estate, and at the same time drives the development of materials, energy and electricity, transportation, construction, decoration, catering, entertainment, and land auctions.

Without relying on real estate, it is difficult for the economy to pull up.

Hello, dear, I'm glad to answer for you, kiss Peking University professor Dong Fan. He said: The state has repeatedly proposed to expand domestic demand and restore residents' purchasing power. While chasing the new, don't forget that the driving force of the property market for economic development still exists.

It is not a short-term driving force, but an economic driving force with a long-term mechanism. In other words, economic growth is inseparable from real estate, and it must rely on real estate. Previously, economist Li Tie also expressed such views, "Without real estate, how can you buy TVs, washing machines, and refrigerators?"

Would you buy a car without a house? China's domestic demand potential has not yet been released, allowing a large number of farmers to settle in the cities, and the first thing they do when they enter the cities is to buy houses. "To put it bluntly, with real estate, there will be a lot of development, quiet decoration, home appliances and other hundreds of industries, it seems that with real estate, there is everything.

In short, it seems that real estate is everything. Kiss <>

I hope my answer can help you, and I wish you a happy life and good health!!

The main reason for the decline in residential investment due to the contraction of the real estate sector is due to the decline in market demand, which is due to the following reasons: First, the impact of the epidemic is the most important reason for the decline in residential investment. Fundamentally, the main reason for the current decline in residential investment is the impact of the pandemic.

In the past three years of the epidemic, the entire state of economic development has been very different from before, and all walks of life have been affected. Residential investment has also been affected by this and has declined. This aspect of the problem will finally be resolved after the epidemic is over, as all walks of life gradually return to normal.

Second, the decline in demand is the direct cause of the decline in residential investment. The direct cause of the decline in residential investment is the decrease in demand. The reason why houses are being built is because there are people buying them.

However, if fewer people buy houses, building houses will become unprofitable, and residential investment will decline. The reason for this phenomenon is actually the impact of the epidemic. This problem will also be solved as the overall environment gets better and better.

Third, the burden of borrowing has increased due to rising interest rates, which has also led to a decline in residential investment. The recent rise in interest rates has also become one of the important reasons for the decline in residential investment. Rising interest rates lead to an increase in the burden of borrowing, and those who invest in housing through loans will be under more pressure, which will lead to higher costs and lower returns.

As a result, a decline in residential investment is an inevitable occurrence.

Generally speaking, it is precisely because of the direct causes of the above-mentioned aspects, as well as other factors, that the recent decline in residential investment has occurred. When these factors are resolved, residential investment can rise. But these are local, structural, and will improve in general.

According to Caixin***In 2021, real estate investment accounted for the proportion of domestic GDP in that year. The proportion of "burying the group" is the highest among all the large economies. On June 25, Shen Minggao, chief economist of GF**, said in a keynote speech at the "2022 Tsinghua PBC Global Financial Forum - Guangzhou Summit" that it is difficult for China's real estate investment to continue to rise as a proportion of GDP.

The future investment growth rate of Fangwanju Orange Real Estate will be slower than the nominal GDP growth rate, and it is no longer sustainable to rely on real estate to drive China's economic growth.

Shen Minggao pointed out that when a country's housing prices are relatively fast, investment pours into real estate, pushing up the proportion of real estate investment in GDP, which usually means that its housing prices may be relatively high. The chart he issued shows that Japan's residential investment as a proportion of its GDP peaked in the 70s of the 20th century, reached the peak, and then began to decline, until the early 90s of the 20th century, Japan's real estate bubble finally burst, the national policy is now real estate investment is both love and hate, in order to avoid a hard landing of the economy, it is necessary to show the wisdom of policymakers to ensure that the assets of the vast majority of people shrink.

The manufacturing industry of the future can replace it, because the manufacturing industry can drive the development of many industries and bring many jobs at the same time.

Personally, I think it's the Internet, because I think the Internet can have a greater breakthrough in the economy, and it will drive the economic development of the whole country.