real estate weekly丨urban renewal opens up market space in the real estate stock era
2024-09-05
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focus on accelerating urban renewal
editor's note
currently, urban renewal is being carried out in full swing in various places. the recent establishment of "housing and urban renewal bureaus" in many places in hubei has also attracted attention. the special establishment of government work departments means that the importance of urban renewal work has been further enhanced. this issue of real estate weekly focuses on the acceleration of urban renewal and provides suggestions for urban renewal.
half-month talk on the property market
image source: xinhua news agency
■xia jinbiao, reporter of china economic times
recently, the housing and urban-rural development bureaus of 17 cities (prefectures) in hubei province have been renamed as housing and urban renewal bureaus (hereinafter referred to as “housing and urban renewal bureaus”) and have been established one after another. in addition, shenzhen, guangzhou, jinan and other places have set up special urban renewal agencies. the establishment of “housing and urban renewal bureaus” in many places reflects the transformation of government functions and the new trend of urban development, marking a new era in which my country’s urban construction mode is shifting from incremental expansion to stock improvement.
at present, the supply and demand relationship in my country's real estate market has undergone major changes, from a shortage of total volume to a structural shortage of supply. urban development has shifted from large-scale incremental construction to a focus on both stock quality improvement and incremental structural adjustment, entering an important period of urban renewal. urban renewal is a systematic project that covers a wide range of areas, including the renewal and renovation of urban infrastructure, the renovation of old communities, and the renovation of urban villages, in order to achieve high-quality urban development.
orderly promotion of urban renewal is an important task at present and in the future. the report of the 20th cpc national congress proposed to implement urban renewal actions, strengthen urban infrastructure construction, and build livable, resilient, and smart cities. the "decision of the cpc central committee on further comprehensively deepening reforms and promoting chinese-style modernization" reviewed and approved by the third plenary session of the 20th cpc central committee clearly requires the establishment of sustainable urban renewal models and policies and regulations, the strengthening of underground comprehensive pipeline construction and the transformation and upgrading of old pipelines, and the deepening of urban safety and resilience enhancement actions.
according to the relevant department head of the ministry of housing and urban-rural development, more than 400 cities have established urban renewal leading groups, 84 cities have issued management measures, and more than 300 cities have compiled special urban renewal plans. the organizational mechanism and institutional policy framework for urban renewal are becoming increasingly perfect. the latest data from the ministry of housing and urban-rural development shows that more than 66,000 urban renewal projects have been implemented nationwide, with a total investment of 2.6 trillion yuan.
at present, my country is constantly improving relevant support policies such as finance, taxation, and land, encouraging social capital participation, and innovating investment and financing models for urban renewal. it is understood that around the investment and financing mechanism for urban renewal, various regions have innovated market-oriented investment and financing models and strived to open up the "source of living water" for the implementation of urban renewal. in may this year, the ministry of finance and the ministry of housing and urban-rural development jointly issued the "notice on carrying out demonstration work on urban renewal", which clearly stated that from 2024, the central government will innovate ways and methods to support some cities in carrying out demonstration work on urban renewal, focusing on supporting the renewal and transformation of urban infrastructure, and promoting the transformation of urban infrastructure construction from "whether there is" to "how good it is".
according to relevant institutions, by 2029, the investment scale of urban renewal will exceed 9 trillion yuan. urban renewal is opening up market space in the era of real estate inventory. from international experience, the government plays an active role in the formulation of policies and regulations, planning management, attracting and encouraging private sector participation in urban renewal. for example, the singapore redevelopment authority, established in 1974, promoted singapore's urban renewal through a combination of reasonable policies, planning and market mechanisms, making singapore revitalized and a highly livable city. at the same time, singapore's real estate companies have established a deeper cooperative relationship with the government and participated in the policy formulation and project implementation of urban renewal, which not only achieved commercial interests, but also assumed social responsibilities and promoted community development and the improvement of residents' well-being.
in the face of the continuous advancement of urban renewal in my country, my country's real estate companies should actively prepare. first, real estate companies should transform from developers to operators and accelerate the cultivation of comprehensive urban operation capabilities to adapt to the arrival of urban renewal. secondly, in view of the long cycle of urban renewal projects, real estate companies also need to have long-term operation ideas and related development capabilities, such as project financing capabilities, to cope with the characteristics of long capital returns and cycles of urban renewal. thirdly, real estate companies must strengthen coordination with the government, owners and other parties to achieve a win-win situation for all parties, and assume social responsibilities while pursuing commercial interests.
executive producerwang hui che haigang
producerli piguang wang yu liu weimin
editor-in-chief: mao jinghui editor: jiang shuai
