Re recognize and affirm the pillar position of the real estate industry

Release date 2024-11-22 15:19:41 Reading 1

　　Re recognize and affirm the pillar position of the real estate industryused excavator for sale

　　The real estate industry is a pillar industry in the vast majority of countries. This is not only because it has a direct and enormous supporting role in GDP growth, fiscal revenue, and employment, but also because the long, complex, and interactive multi-level and three-dimensional industrial chain system and capital flow formed at its core occupy a strategic position in a country's economy. The real estate market not only carries the basic conditions required for modern economic operation - the function of land development, but also provides a trading system for real estate, which is the largest commodity in human history and directly occupies more than 70% of the wealth value of modern society. It also provides a huge and wide range of application scenarios for technological innovation.used excavator for sale used excavator for sale

　　After the 1997 Asian financial crisis, China's real estate industry experienced rapid development and has been recognized as a pillar industry in multiple national economic development plans and important national documents. However, after 2016, due to the public opinion impact caused by the rise in housing prices and the need to implement contractionary control policies, the country basically no longer emphasizes the pillar industry status of the real estate industry, and most relevant documents also avoid this statement. The trend of "de real estate" is very obvious.used excavator for sale used excavator for sale used excavator for sale

　　Since 2021, the real estate market has continued to adjust, causing serious drag on the national economy. In this context, re discussing the industrial nature of real estate and affirming its supportive role in the stable and healthy development of the national economy is not only necessary for understanding economic laws and the current economic situation, but also of great significance for promoting the "stabilization" of the real estate market and stabilizing the Chinese economy.

　　1、 The basic meaning and characteristics of pillar industriesused excavator for sale used excavator for sale used excavator for sale

　　Pillar industries refer to industries that occupy an important position in a country's economy and play a crucial supporting role in the national economy. It not only makes significant contributions to GDP growth, employment, fiscal revenue, technological progress, etc., but also integrates and drives other industries to develop together. The development of pillar industries and the industrial system driven by them is usually manifested as the main driving force of economic growth in a country or region, and has a strong radiation and driving effect on the entire national economy. According to the theory of industrial economics, pillar industries play an "engine" role in economic development. Based on my understanding, pillar industries should generally have the following five characteristics:

　　Firstly, high contribution. Pillar industries make direct and significant contributions to most important economic indicators such as a country's GDP, fiscal revenue, employment, and export revenue.

　　Secondly, it has strong driving force. Another important feature of pillar industries is their strong 'industry linkage effect'. According to Michael Porter's "Diamond Model" theory in his book "Competitive Advantage," the development of an industry can drive the development of related industries such as infrastructure, raw materials, and technology services through the linkage of supply chains and industrial chains.used excavator for sale used excavator for sale used excavator for sale

　　Thirdly, there is a high demand for capital. Most of the pillar industries are capital intensive industries, which have a strong investment driving effect on land, machinery, construction, and research and development.used excavator for sale used excavator for sale used excavator for sale

　　Fourthly, it has a significant impact on employment. The pillar industries not only involve multiple links such as production, service, and sales, but also form a multi-level, complex, and long industrial chain collaborative operation system through product production, technology research and development, support, and application. This not only means the direct demand for labor generated by itself, but also creates a large number of different job opportunities in the collaborative operation system of the entire industry chain, thereby creating numerous direct and indirect employment opportunities.used excavator for sale used excavator for sale used excavator for sale

　　Fifth, strong stability and risk resistance ability. Pillar industries usually have strong stability and risk resistance, and can maintain a relatively stable state in economic fluctuations. During the subprime mortgage crisis in the United States, the technology industry achieved self-healing through innovative activities, enabling the rapid recovery of the US economy and demonstrating the role of pillar industries in maintaining long-term healthy economic development.

　　2、 The significant impact of the real estate industry as a pillar industry on economic developmentused excavator for sale used excavator for sale used excavator for

　　Since human economic activities have gathered in urban areas, urban land and houses have become the main carriers of social wealth. After entering modern society, the marketization and commercialization of the real estate industry have further improved, and its position has become increasingly important. It fully meets the characteristics of a pillar industry and continues to play a key and stable role in the national economy.used excavator for sale used excavator for sale

　　Firstly, the real estate industry contributes significantly to GDP output. Everyone agrees with this, but how should the contribution rate be calculated? Usually calculated directly based on added value (the value directly produced by the real estate industry), but this is not scientific and must also consider its integration and driving effect on the related multi-level, networked, and three-dimensional industrial chain, namely the investment multiplier effect. Due to the significant differences in the completeness of the real estate industry chain among countries, the multiplier effect is indeed difficult to calculate. For example, the building materials industry system in mainland China is developed and complete, and the real estate industry has a significant multiplier effect on it; In countries and regions such as Singapore, New Zealand, and Hong Kong, building materials production activities are rare or even non-existent, and the multiplier effect of the real estate industry on the building materials industry is weak. Therefore, the contribution rate of the real estate industry to GDP that everyone sees only considers the added value of the real estate industry, which is seriously underestimated. However, in most countries, its contribution rate still ranks among the top three in various industries. Taking 2019, which was in a stable growth state before the epidemic, as an example, the contribution rates of the real estate industries in the United States, the United Kingdom, Canada, and Australia were about 13%, 11%, 12%, and 13%, respectively. Among them, the United States ranked first, higher than the manufacturing industry (11%) and the financial and insurance industry (7.8%). The contribution rates of the real estate industries in the United Kingdom, Canada, and Australia also ranked in the top three.used excavator for sale used excavator for sale

　　Secondly, the development of the real estate industry has also driven a huge demand for capital. According to a United Nations statistics, since 1976, the proportion of annual investment in building houses to GDP has generally ranged from 6% to 12% in various countries, with Singapore even reaching as high as 12% to 26%; The fixed assets formed account for more than 50% of the total value of fixed assets formed during the same period, of which investment in residential construction generally accounts for 3% to 8% of GDP and 20% to 30% of the total value of fixed assets formed. In the United States, the ratio of real estate investment to GDP is typically around 13% to 14% per year. The proportion of real estate investment to GDP in Canada, Australia, and the UK is relatively high. In the recent real estate investment boom in Canada, residential investment alone accounted for over 9% of GDP. As the population grows and demand increases, this ratio will continue to rise. In China, the ratio of real estate investment to GDP has long been between 15% and 20%. But recently, due to the impact of regulation, it has shown a sluggish state. From a micro perspective, compared to general commodities, real estate not only has a higher unit price, but also a larger total price. Taking China as an example, in terms of unit price, the price per square meter of land or house can range from a few thousand yuan to tens of thousands or even tens of thousands of yuan. Commercial real estate in bustling areas is often referred to as "every inch of land is worth every penny". In terms of total price, the construction and installation cost of a building ranging from several thousand to tens of thousands of square meters alone can reach several million to tens of millions of yuan, with hundreds of millions of yuan being common occurrences. In China, the investment scale of some urban complexes often reaches billions or even tens of billions of yuan. The huge investment scale has made the real estate industry a typical capital intensive industry.used excavator for sale used excavator for sale used excavator for sale

　　Once again, the strong industrial interdependence of the real estate industry has fostered tremendous employment creativity. There are currently about 2.2 million real estate related enterprises in China, and if each household has an average of 10 employees, it would reach 22 million people. More importantly, the real estate industry, along with industries such as construction, building materials, finance, commerce, home decoration, property management, tourism and hotels, education, health and medical care, cultural and entertainment, logistics and distribution, and technology, has established a long, complex, and three-dimensional industrial network through forward, backward, and lateral connections. Each of these industries contains a complex industrial chain network, which can be subdivided into many industries, involving numerous enterprises and economic activities, and has a huge demand for labor. This complex, detailed, and three-dimensional industrial division of labor and coordinated operation system has created a large number of employment opportunities with multiple specialties, types of work, and levels, estimated to involve hundreds of millions of job positions in China. Therefore, it is not difficult to understand the "win-win" relationship between real estate employment and the entire job market.used excavator for sale

　　Finally, real estate related taxes are an important source of fiscal revenue in major countries around the world. The real estate development and operation in these countries involve corporate taxes, similar to various taxes paid by Chinese real estate development companies, agency companies, planning companies, etc. However, the majority of real estate taxes are paid by individuals and enterprises when trading and holding real estate. In the United States, local governments rely on holding real estate taxes to support public service expenditures. The collection of this tax is calculated based on market value, and the tax rate varies by state and city, ranging from approximately 0.5% to 2%. When transferring real estate, some states and cities are required to pay transfer taxes, with tax rates ranging from 0.1% to 2%. When selling investment properties, capital gains tax is required, with a maximum tax rate of approximately 20%. Some states rely as much as 50% solely on real estate taxes. Transactions and holding taxes related to real estate in the UK include stamp duty, capital gains tax, value-added tax collected by the central government, and municipal taxes levied by local governments; In Canada, it includes real estate transfer tax, capital gains tax, and property tax; In Australia, it includes stamp duty, capital gains tax, and land tax. The meanings, tax rates, and calculation methods of these taxes vary from country to country, but the total amount collected is large and they are the main source of local finance.used excavator for sale used excavator for sale used excavator for sale

　　The conclusion can be drawn from multiple perspectives that the real estate industry has a pillar industry status. Overall, in almost all market-oriented countries, including China, the real estate industry not only leads in GDP, employment, and fiscal revenue, but also serves as the main source of wealth for residents. It further supports the operation of the national economy by driving the development of the industrial chain. In the management of national economic security and social stability, the regulation and management affairs related to the real estate market have always been extremely important.used excavator for sale used excavator for sale

　　3、 China needs the real estate industry as a pillar industry to continue long-term, stable, and healthy developmentused excavator for sale used excavator for sale

　　After the Asian financial crisis in the late 1990s, China's real estate industry experienced rapid development in terms of scale. For about 20 years, it has been in a state of overall strong supply and demand, demonstrating a clear position and comprehensive characteristics as a pillar industry, greatly improving the living conditions of the entire population and the office and commercial conditions of the whole society. However, due to the pressure of public opinion brought about by the rise in housing prices, the government's regulation of the real estate industry has been continuously strengthened, and there has been a strong negative trend among the public and academia towards its position as a pillar industry. The term "pillar industry" has disappeared from the document. Both theory and practice have proven that the real estate industry is still a pillar industry in China, and the Chinese economy also needs it to support continued stable, healthy, and sustainable development.used excavator for sale used

　　Firstly, from the perspective of boosting economic growth and stabilizing social order, the real estate industry needs to continue to play a supporting role.

　　The real estate industry, through a long, complex, multi-level, and three-dimensional industrial chain network, deeply connects and integrates the entire national economy from different levels and perspectives. In this sense, the real estate industry determines the stability and development quality of the national economy. Under normal circumstances, the real estate industry makes a huge contribution. From the stable development period of the market in previous years, the real estate industry has created hundreds of millions of direct and indirect employment opportunities, about 65% of local government revenue, and determines 30% -40% of GDP realization (including the impact of multiplier effects). When real estate investment and transactions plummet, the impact is not only on the industry itself, but also through industry linkages, dragging the entire national economy into difficulties, causing a significant contraction in GDP output, and the whole society may fall into an unstable state due to unemployment, income decline, and increased debt. In recent years, the fluctuations in the real estate market and the decline in macroeconomic prosperity have fully verified the principle that "if the real estate industry is thriving, the economy will thrive; if the real estate industry declines, the economy will decline" - this is also an economic law that has been fully proven by the development practices of countries around the world. From the current situation in China, as long as the real estate market cannot effectively recover and develop healthily, many people will not be able to find jobs, and through industrial connections, more people will lose their jobs or their income will decrease. Various defaults will increase, credit quality will decline, economic order will be threatened, public security will deteriorate, and civil disputes and conflicts will increase significantly. So, without the restoration of real estate development and transaction order, it is impossible to maintain a good economic and social order.

　　Secondly, from the perspective of stabilizing wealth value and restoring public confidence, the real estate industry needs to continue to play a boosting role.

　　From the perspective of wealth accumulation, the value of real estate in many countries accounts for about half or more of the country's total wealth. A survey in the UK estimated that the value of real estate accounted for 73.2% of the country's total wealth. In China, from the perspective of households, the value of real estate accounts for about 70% of household wealth. From the perspective of the whole society, based on the stable data of housing prices in 2021, the average sales price of commercial housing in China is 10139 yuan/square meter, and the transaction area of commercial housing is 1794.33 million square meters. The corresponding property volume of this transaction alone reached about 18.19 trillion yuan that year. If all the existing houses are discounted, the national real estate wealth scale is at least 3-4 trillion yuan. The value of undeveloped land in cities and towns across the country has not yet been included. For such a fundamental and massive asset, its price fluctuations not only have a significant impact on the government's fiscal revenue, but also have a significant impact on the public's mentality, investment and consumption expenditures, and social order: price increases will bring about the "wealth effect", increase the net assets of homeowners, enhance investment and consumption confidence, increase household expenditures, and increase transactions throughout society, thereby promoting economic growth. On the contrary, a price drop may lead to "asset shrinkage" and even trigger panic selling. Owners will reduce investment and consumption, leading to further deterioration of market conditions. When real estate is the main asset of a family, under the conditions of unemployment, declining income, but still having to repay monthly payments, homeowners may fall into living difficulties or even collapse in confidence. Therefore, from the perspective of stabilizing wealth value and enhancing public confidence, it is essential to ensure the stable and healthy development of the real estate industry.used excavator for sale used excavator for sale used excavator for sale

　　Thirdly, as long as there are economic fluctuations, macroeconomic regulation needs to be implemented, and the real estate industry is an important focus of regulation.used excavator for sale used excavator for sale used excavator for sale

　　The real estate industry is a capital intensive industry, and through forward, backward, and lateral connections, it has established a long, complex, and three-dimensional industrial chain network, which has a significant impact on GDP growth, employment, and fiscal revenue. Generally speaking, when the real estate industry grows steadily, the overall national economic growth will also be relatively stable and healthy; When the real estate industry grows rapidly, it often generates a strong "multiplier effect", leading to a prosperous economic outlook; On the contrary, if the real estate market declines, it will increase the downward pressure on the economy. Therefore, the real estate industry has the functions of an economic "stabilizer" and "accelerator", becoming an important lever and focus of macroeconomic regulation. Since the 1970s, the United States has promoted the prosperity of the real estate market through policies such as low interest rates, thereby improving employment and economic conditions. But without grasping the rhythm well, in 2008, due to loose mortgage policies and securitization of subprime loans, a global financial crisis was triggered. Subsequently, the tightening of US mortgage policies led to a recession in the real estate market, which in turn dragged down the recovery of the economy. This financial crisis also affected China, but China effectively reversed the downward trend of the economy by adjusting its fiscal and monetary policies, stimulating real estate transactions and investment growth. This indicates that real estate policies have significant expansion and contraction effects on the economy in the short term, and must be scientifically and flexibly grasped. In future economic regulation, especially in revitalizing the economy, the real estate industry still needs to be the focus and play an important role.used excavator for sale used excavator for sale used excavator for sale used excavator for sale used excavator for sale

　　Based on theoretical analysis, industry development status, and the current situation of the real estate market, more perspectives can be discussed

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