Beijing and Shanghai real estate markets: on the eve of a sharp rise!

On September 26th, during the Politburo meeting, it was stated that in order to promote the stabilization of the real estate market, it is necessary to strictly control the increment, optimize the stock, improve the quality of commodity housing construction, increase the investment in loans for “whitelist” projects, and support the revitalization of idle land in stock. To address public concerns, we need to adjust the housing purchase restriction policy, lower the interest rates of existing mortgage loans, accelerate the improvement of land, fiscal, and financial policies, and promote the construction of a new model for real estate development.
Recently, there have been frequent policy updates, undoubtedly a nuclear level positive news – housing prices are going to rise! Hurry up and get on the car!
It is also said that first tier cities may lift purchase restrictions? If it really opens up, housing prices in Beijing will skyrocket. If you don’t buy it again, you won’t be able to afford it in the future.
If this news is true, then for young people born in the 2000s, this may be their last chance to change their destiny by investing in real estate. If Beijing is the “Jerusalem” in the hearts of the four provinces of mountains and rivers, then Shanghai is the “Mecca Holy Land” in the hearts of Jiangsu, Zhejiang, Fujian, and Guangdong.
The attractiveness of Beijing and Shanghai, especially for ordinary people, should not be underestimated. To be able to buy a house in Beijing is a lifelong dream for many retired elderly people, and it is also a capital for many young people to show off in their go home.
If the purchase restrictions are really lifted, I predict that housing prices in Beijing and Shanghai will skyrocket rapidly. At that time, wealthy people from all over the country will flock to it, while those young people with poor economic conditions may also grit their teeth and get on the bus, even if they only buy old and shabby sets.
For young people who have not yet bought a house in Beijing or Shanghai, now is the best opportunity. If we don’t take action, there may really be no chance in the future.
The situation in the south may be more complex. Because a huge amount of funds will flow into Shanghai, pushing up housing prices there and potentially causing a decline in housing prices in cities such as Hangzhou and Nanjing. In coastal areas such as Fujian and Guangdong, due to the tense situation in the Taiwan Strait and frequent typhoons caused by global warming, housing prices may continue to decline.
Recently, there have been some comments online that suggest China’s real estate market will repeat the mistakes of Japan. Personally, I think this view is too naive. The trend of housing prices in China will not be influenced by Western economic theories. Those who hope for a sharp drop in housing prices and bankruptcies for wealthy Chinese can only be said to lack understanding of history.
To analyze China’s future trends, instead of blindly studying economic laws and international situations, I advise everyone to read more history. What was the most valuable thing in ancient China? It’s a field.
And now houses are equivalent to ancient fields. From a historical perspective, the higher the value of land and property in the later stages of social development. China’s wealth has been accumulated over several generations. As long as the dynasty prospers, society remains stable, and there is no major domestic turmoil, land will become increasingly concentrated in the hands of the wealthy.
‘Ten thousand hectares of fertile land’ was the most valuable real estate in ancient times, and today, houses play the same role.
This is a historical law. China’s 5000 year history tells us that the long-term value of land and property will never be devalued, which is more reliable than any Western economic theory.