This paper first discusses the problems existing in China's real estate, and explains the outstanding problems. Then, in view of the shortage of the real estate market, the paper puts forward the role that the government should play in real estate regulation and control. The third part of the article focuses on the transformation of government functions in real estate regulation.
Keywords: government; Real estate regulation; Role; function
This paper discusses the problems existing in China's current real estate, and expounds the outstanding problems; Then according to the defects of the real estate market, the role of the government is put forward; The third part focuses on the transformation of government functions in real estate regulation and control.
Keywords: government; Real estate regulation; Role; function
introduce
Under the current market economy, how the government plays a role in the real estate market has become an important issue. Countries at different stages of market economy are discussing the transformation of government behavior and functions according to the needs of social and economic development. The government should not only carry out necessary macro-control on the real estate market, but also regulate the real estate industry to develop healthily in a direction beneficial to people's livelihood through system reform and system improvement.
1 outstanding problems in China real estate market
1. 1 The structural contradiction of real estate supply is prominent.
Housing and non-housing, high-grade housing and low-rent housing are unreasonable in structure and uncoordinated in proportion. On the one hand, blindly going to large-sized and high-grade projects is beyond the affordability of users, resulting in poor sales and high vacancy rate; On the other hand, the supply of low-priced commercial housing is in short supply, the support for the construction of affordable housing is not enough, and the construction standards and purchase targets are not strictly controlled.
1.2 development financing structure is unreasonable
In the mature foreign real estate financial market, the financing of real estate development and operation includes not only debt financing, but also equity financing, as well as securitization secondary market outside the primary market of debt financing and equity financing. However, domestic real estate developers mainly borrow from banks, and the credit ratio is too high [1]. On the one hand, the demand for bank funds is large, which leads to higher interest rates and increases the cost of real estate development; On the other hand, real estate projects occupy a large amount of funds, have a long development cycle and have a high risk of bad debts.
1.3 supply market monopoly
Due to the regionality of real estate, real estate itself has local monopoly, and the government and a few real estate developers constitute the monopoly of the market. Economic principles tell us that the essential source of all high profits is monopoly, and the distribution of profits comes from the size of their monopoly power.
1.4 intermediary market lacks market information transmission mechanism.
Due to the long-term nature of real estate construction and the durability of real estate commodities, the development of real estate intermediary market is a very important part of the development of real estate market. Intermediary market is not only about buying and selling real estate, property management, etc. But its most important function is to convey the information of the real estate market. The development of China's real estate intermediary market is still far from perfect, and it is difficult to play its role as the most important information transmission tool in the real estate market.
1.5 residents' real estate consumption tendency
In many cities in China, the ratio of rent to house price is very low. In other words, the saving tendency of real estate-investment tendency is greater than consumption tendency. With a high propensity to save and invest, there is a great demand for current real estate, which not only directly promotes high housing prices, but also inhibits other consumption, resulting in an unbalanced social investment structure.
2 the role of the government in the real estate market
At present, China's real estate legislation is full of administrative color, departmental rules and local rules, and the phenomenon that administrative power excessively interferes with civil rights is widespread. To reverse this situation, we must first make clear what role the government plays in the real estate market, that is, what functions it should undertake. According to modern management theory, the functions of the government in the real estate market mainly include the following aspects.
2. 1 supervision function
The government is a regulator and assumes the role of an executive agency, rather than a direct participant in the market. This requires the government not to directly operate the land, withdraw from the market, reduce the examination and approval, and strengthen the whole process supervision of the real estate market.
2.2 Adjustment function
The government's regulation of the real estate market is mainly indirect. The government does not regulate specific real estate market behaviors, but regulates and guides the behaviors of market participants through market mechanisms, so as to restrain the speculation in the real estate market (including commercial housing speculation and overheated investment in real estate development) to a certain extent, create fairer conditions for them to enter the market, formulate necessary market competition rules and supervise the implementation of the rules, so as to improve market transaction efficiency and reduce transaction costs.
2.3 Balanced supply function
In the process of the development of the real estate market, the government determines the real estate supply level that is coordinated with the consumption level of other residents according to the scarcity of real estate resources, especially the endowment of land resources, combined with the level of economic development, and guarantees it through policy guidance to achieve the goal of balanced supply in the real estate market [2]. It includes two levels: supply and demand balance. First, the supply of real estate market is relatively balanced with the supply of other commodities, and the consumption level of residential houses is coordinated with that of other commodities; Second, the supply of internal structure of real estate is relatively balanced, and the supply and demand of commercial housing of all grades are basically the same, especially the supply of low-grade commercial housing is basically the same as the housing demand of residents.
2.4 Social security function
The government's function in housing is to manage different levels of social interest groups and realize the housing rights of all citizens by establishing a housing security system. The government should ensure to meet the basic housing needs of the middle and lower classes and vulnerable groups in society, provide some residents with certain real estate consumption benefits, fully realize the public value of real estate products, provide suitable housing conditions for low-and middle-income residents, realize the optimal utilization of housing resources, and realize the social ideal of "home ownership".
3 the government should play a role in real estate regulation and control
Friedman, a famous American economist, believes that there are four main functions of the government: ensuring national security, maintaining judicial justice, making up for market failure, and protecting and helping the poor. In Economics (the first edition 16), Malsen thinks that there are four main economic functions of the government: improving economic efficiency; Improve income distribution; Stabilize the economy through macroeconomic policies; Implement international economic policies. Based on the above point of view, there are two basic starting points and ends for government regulation and control of China's current real estate economy. First, stabilize the real estate economy through macro-control, make up for market failure, promote the healthy development of the industry and improve economic efficiency; The second is to improve income distribution, ensure housing for low-income people and ease the housing difficulties of middle-income people. Specific measures can be:
3. 1 The government has changed from a "profiter" to a "referee"
An important crux of soaring housing prices is the "perversion of interests" in the exercise of administrative power-local governments become the profit-making parties in real estate transactions by recovering huge land deposits and withdrawals. According to the report of the State Council Development Research Center, as real estate is a local pillar industry, the five highs of high profits, high taxes, high prices, high output value and high GDP are very attractive to government departments. The scarcity of land resources, the impulse of local governments to seek profits (political achievements) and the opacity of land transfer procedures make the competent officials face great "public relations" pressure and prone to collective or individual power rent-seeking.
At present, as far as the government's land supply mode is concerned, there are inevitable defects in both land transfer by agreement and land auction. The former is easy to lead to corruption in the process of operation due to the large discretion of the competent officials, while the latter makes the government the biggest winner in the auction process. In order to solve this problem effectively, the government must first withdraw from the position of "stakeholders" and become a "referee". This requires promoting "procedural justice": limiting the space for officials to rent through the openness, fairness and transparency of land acquisition procedures; Through the transparency of the management and use of land transfer fees, the freedom of local governments and their officials to dispose of transfer fees will be reduced, and the impulse of officials and local governments to "grab" land transfer fees will be reduced. Commercial land in land supply should be auctioned by the government to ensure the paid choice of the market; Land used for mass housing must be transferred through government policies, and taxes and fees should be reduced and control should be strengthened to ensure that citizens can meet their basic housing needs at the lowest cost in housing consumption. In this process, it is necessary to strengthen the supervision of legislation, judicature, political parties, public opinion, citizens and citizens' collectives in order to reduce the possibility that land will become a profit-making tool for a few people.
3.2 Direct production and provision of public goods, focusing on the construction of low-rent housing.
At present, there are some problems in the construction of low-rent housing, such as insufficient housing, unstable sources of construction funds and unfair lease distribution. Some experts suggested [3]: First, implement the financing channels for the construction of low-rent housing, and use a certain proportion of the net income of municipal government land transfer for the construction of low-rent housing; The second is to formulate policies and select a group of state-owned real estate companies to specialize in the construction, operation and management of low-rent housing to solve the problems of construction and management. Franchised low-rent housing companies are no longer engaged in commercial housing development, not for profit; Thirdly, to solve the land problem of low-rent housing construction, we can adopt the way of directional auction, and at the same time avoid building low-rent housing in the suburbs to form new "slums"; The fourth is to establish a strict and standardized low-rent housing lease audit system and determine a reasonable hierarchical rent. Therefore, to solve the current housing contradiction, the government's policy goal should be to realize "everyone has a house to live in" as soon as possible, rather than "everyone has a house and property rights". The focus of the policy has shifted from affordable housing to low-rent housing construction.
3.3 Standardize and stabilize the market order and ensure full competition as far as possible.
"A completely free competitive market" requires four conditions: sufficient information; Goods of the same nature; Buyers and sellers are free to enter and leave; There are many parties involved in the transaction. Compared with the completely free competition market, the real estate market has the characteristics of insufficient information, huge investment, long payback period, high risk, difficulty for investors to enter the market, and difficulty for both parties to enter or exit the market completely freely, so the real estate market is not sufficient. Although the "completely free competitive market" is only an imaginary state in theory, we can use it as the coordinate of policy adjustment to shorten the distance between the real estate industry and IT.
In order to regulate and stabilize the market order, the government should play a role in the following aspects:
3.3. 1 Promote information flow
Due to the lack of information of buyers and the asymmetry of information, developers cheat consumers through "internal subscription" and other means, resulting in the illusion that the house is in short supply and disrupting fair trade to some extent. The government should strengthen and improve the macro-monitoring system, collect, sort out and analyze the national real estate market information in time, evaluate and predict the market operation, issue market analysis reports regularly, guide the market reasonably, and be a good staff member of the government's macro-decision. Increase market participants
Wang Guangtao, Minister of Construction, made it clear that the current real estate market mechanism in China is too single to meet the diversified housing demand. And that this is "an important reason why real estate prices have been chasing high in recent years". Therefore, adding some new market elements to the real estate market, lowering the market threshold, allowing more market participants to have the qualification to build houses and diversifying the real estate market as much as possible can make the competition more full.
3.3.3 Promote the transparency of commodity quality.
In addition to the macro information mentioned above, the micro-level information asymmetry in real estate transactions is also very serious. Developers frequently speculate on "smart residence", "green residence", "landscape residence", "new concept residence" and "ecological residence", exaggerating the application of science and technology, environmental protection and other factors in it, speculating on seasonal concepts such as "Olympic bid", "WTO entry" and "CBD", and covering up many shortcomings of their products, which is more serious in the sales of faster houses [4]. However, individual consumers are in a weak position in information, and it is often difficult to determine the real quality of houses. Therefore, the index system of housing evaluation should be improved, and the government or the third party should conduct objective evaluation and certification to make the housing quality transparent. In addition, both parties and consumers in real estate quality disputes are in a weak position, and the cost of safeguarding rights is huge. While guiding the establishment of the owners' committee and standardizing its activities according to law, the government should also be a "law enforcer" and punish violators according to law.
3.3.4 Standardize the real estate transaction order.
Focus on preventing and stopping all kinds of behaviors of evading structural adjustment policies and hoarding houses in disguise, and severely investigate and deal with illegal real estate development enterprises and intermediaries such as illegal sales, driving up house prices, taking bank loans under false contracts, evading taxes, and disrupting market order.
3.3.5 Strengthen macro-control to prevent industrial "bubbles" and financial risks.
We should correctly use government regulation and market mechanism, maintain a reasonable scale of real estate investment, optimize the supply structure of commercial housing, strengthen the supervision and regulation of housing prices, curb the excessive rise of real estate prices, and maintain a reasonable price level. The inflation of real estate price caused by irregular mortgage loan operation will increase the burden on consumers and increase the default risk of buyers. Once the economy is depressed, a large number of buyers default, forming non-performing assets of banks, which eventually leads to financial risks. In recent years, China's real estate industry has sustained rapid growth, attracting a large number of enterprises to invest in real estate. Accelerate the establishment and improvement of the macro-control system of real estate, intervene and control in time through land supply, taxation, improving pre-sale management and other means to prevent the real estate industry from appearing a "bubble". Thoroughly rectify and standardize the order of the real estate market, strengthen the supervision of the real estate market, and punish illegal acts in real estate development, trading and intermediary according to law. Local governments at all levels should earnestly assume the responsibility of regulation and supervision of the real estate market.
3.4 Strengthen power restriction and curb corruption.
Montesquieu said: "All people with power are prone to abuse their power, which is never an easy experience. People with power use power until they meet a border. " At present, there are some problems in real estate transactions, such as excessive administrative power and insufficient sunshine in administrative process. While perfecting administrative power, we should establish a reasonable restriction mechanism. In view of the current real estate market management, we should establish various channels of restriction mechanisms, such as legislation, judicature, auditing, public opinion, official discipline inspection, and citizen and citizen group supervision, to supervise the behavior of the government and its members.
refer to
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