[Explanation] After the epidemic, the Chinese economy is restarting. What is the positioning and trend of the real estate industry? The 2020 Boao Real Estate Forum will be held in Lingshui Li Autonomous County, Hainan Province from August 11th to 13th. Hundreds of guests discussed this topic.
[Explanation] Zhu Zhongyi, former vice president and secretary-general of the China Real Estate Association, pointed out in his keynote speech that the impact of the epidemic is phased and market demand will be released sooner or later. From the perspective of market demand, at the end of 2019, the urbanization rate of the permanent population in China was 60.6%, and the urbanization rate of the registered population was 44.38%. The newly-increased population and newly-employed people in the cities all need housing, plus pension and health real estate, With the development of cultural tourism real estate and logistics real estate, there is still a lot of room for real estate development in the future.
[Concurrent] Zhu Zhongyi, Former Vice President and Secretary-General of China Real Estate Association
After the epidemic, the people even hope that our living environment and quality will be more in line with green requirements. Therefore, how our real estate focuses on scale and quantity in the past to improve its quality and efficiency in the future is a consideration. In addition, how our company pays more attention to the concept of green development, and further improve the environment and quality of the house is the main thing.
[Explanation] During the forum, Fan Gang, vice president of the China Economic System Reform Research Association and director of the National Economic Research Institute, said in an interview that after the outbreak, people's economic activities have been restricted, which has brought new real estate demand.
[Concurrent] Fan Gang, Vice President of China Society for Economic System Reform and Director of National Economic Research Institute
In this round of demand, to be honest, a lot of it is because a lot of money is withdrawn from other investments and withdrawn to buy consumer goods. What consumer goods to buy? The biggest consumer product is our house. He didn't buy a house for speculation, he just wanted to improve (living environment), he just wanted to live in a bigger house, and he wanted to live in a house with good environment. For real estate, the recovery after the epidemic is still very fast. I believe this trend will continue in the second half of the year.
[Explanation] The sudden epidemic has brought many uncertainties to the development of domestic real estate companies. Pan Jun, chairman of the board of directors of Fantasia Holding Group Co., Ltd., believes that due to the impact of the epidemic, insufficient consumption growth is the next challenge that developers will face.
[Concurrent] Pan Jun, Chairman of the Board of Directors of Fantasia Holdings Group Co., Ltd.
I think the pressure on the real estate market in the second half of the year is enormous. Because without income growth, there will be no growth in consumer confidence, and there will be no specific consumer behavior. Insufficient growth in consumption power is the next challenge we face. I believe this part will appear at the end of the third quarter and the beginning of the fourth quarter.
[Explanation] The Boao Real Estate Forum has been held for 20 sessions since its establishment in 2001. Every year, many real estate leaders and benchmarking companies gather to discuss and exchange hot topics in China's real estate industry.
Reporter Lin Shijie reports from Lingshui, Hainan
Editor in charge: 【Luo Pan】