The real estate market is one of the most important pillar industries in China, and its position in the national economy is very important. The appreciation of RMB will inevitably have an important impact on decision makers in the real estate market. The demand of the real estate market is mainly divided into two categories:

One is real demand, including independent demand and investment demand;

The other is fictitious demand, that is, speculative demand.

First, from the perspective of self-occupation demand, China is in the period of accelerating urbanization, and the upgrading of urban residents' housing structure and the transfer of rural population have intensified the demand for the real estate market. The appreciation of RMB means that the price of imported goods falls, which leads to the decline of domestic general consumer goods prices, the increase of people's real income, the increase of disposable income for buying houses, and the income effect brought by RMB appreciation leads to the increase of real estate market demand.

Secondly, from the perspective of investment demand, faced with the threat of inflation and the pressure of negative interest rates, depositors regard housing as a means to preserve and increase the value of money.

Third, the speculative demand for RMB appreciation may be the main factor pushing up housing prices. Capital is naturally profit-seeking, which is different from the investment demand that attaches importance to the growth of the real estate market. Speculation is just a short-term arbitrage of bid-ask spreads. At present, under the strong momentum of further appreciation of RMB, a large amount of hot money enters the territory through various legal and illegal channels under direct investment projects and trade projects and is converted into RMB assets, which is expected to gain huge appreciation and profit space.

Influence of RMB exchange rate rise on the supply of real estate industry;

The appreciation of RMB will increase the land reserve value of developers, and the value of projects under construction and inventory will also increase; Currency appreciation will also reduce the import price of building materials and residential equipment in the real estate industry and reduce the construction cost of developers.

The appreciation of RMB has enhanced the confidence of foreign capital to enter the real estate sector. Foreign capital not only directly buys properties, but also directly increases cooperation with domestic real estate enterprises. To a certain extent, it has increased the source of funds for the real estate industry. Some powerful enterprises even invest directly. For example, CapitaLand (China) has been active in the real estate investment and development market since 1994 entered China. At present, China's total investment has reached more than1200 million yuan. Although the real estate development investment field is facing regulatory pressure, the return on investment is still as high as 30%. Therefore, real estate development is still an investment "paradise" pursued by funds.