Chinese real estate development history The history of the Chinese real estate market and the end of the seventies the twentieth century in China&#39;s reform and opening up simultaneously. As social and economic reform and opening-round is an important part of the national housing problem of the real estate and closely related, but the market is a lagging area. In the planned economy are still strong years, the Chinese real estate as with many new things sprouting on that land in the Pearl River Delta. The mid-eighties, Guangzhou and Shenzhen, the most number of cities receiving the baptism of reform and opening up, China has become in the future cornerstone of the real estate boom. But then the real estate market is only a single spark, not yet formed Negative effect and Precaution. National significance of the real estate market is still far from forming. The context of welfare housing, real estate investment market products also seem quite small. Early stage of development in the industry, because of supply and demand unreasonable extreme form of false prosperity, and finally led to the 1989 &quot;Hainan real estate bubble.&quot; Can be said that the real estate bubble burst in Hainan, China&#39;s real estate was in the throes of a truly embarked on market-oriented development. The history of the real estate market should be counting nineties of last century, while the nationwide market process can be started in 1992. Spring and summer of 1992 after the country from south to north, from east to west in the big cities, the &quot;composite&quot;, &quot;Zone&quot;, &quot;garden community&quot; and other kinds of real estate project site have started, with Some remote coastal location, economic strength is not somewhere, and even the name of the map are hard to find even a small city is no exception. The Chinese real estate development, the ups and downs, gone through the course of 26 years. In these 26 years, China real estate industry, what changes have taken place? What happened enough to affect the whole industry events? Think of the last century 80 real estate from the bud to mature in 2006 the real estate is divided into four stages of this historical process of sorting out briefly: Phase I: Real Estate infancy (before 1991) As early as 1978, Chinese real estate has already begun and the theoretical research, and initiated the preparation of real estate development. In 1987, Shenzhen issued the first new housing policy - the right to use real estate can be traded. This policy broke the house under the planned economy at that time only by the go-vern-ment distribution situation, with the experimental. Subsequently, in Guangzhou, there have been a similar situation. Germination in southern China&#39;s real estate hot spot, and gradually began to infiltrate the country. During the great historical events occurred as follows: In 1978, the theoretical research community began to put forward the commercialization of housing, land property rights point of view, for the Chinese real estate development foundation in theory. September 1980 the Office of the Beijing Municipal Housing Commission built the first listing, the establishment of the Beijing Urban Development Corporation, opened the prelude to the comprehensive development of real estate. In the same year, China Real Estate Development Group (of the Housing Group) was established. In 1982 the State Council house sales in the four pilot cities. Tianhong Group in 1983, the predecessor of Beijing Real Estate Development Corporation to create. In 1984, Guangdong, Chongqing started levying land use fees. November 26, 1987, Shenzhen City, go-vern-ment first public tender sell land for housing. February 25, 1988, the State Council issued State Council Housing Reform Leading Group &quot;on the implementation of China&#39;s urban housing system reform in stages to the implementation of the program.&quot; In 1988, shares of China Vanke through restructuring, renamed as &quot;Shenzhen Vanke Co., Ltd..&quot; November 18 that year, to 20 million yuan price Vanke bidding to buy land, winning the spring block Lai, Vanke officially entered the real estate, becoming one of the earliest residential commercial housing development companies. Shanghai housing reform program introduced in 1990, the housing provident fund system to start building. 1991, the State Council has approved a total of 24 provinces and cities of the housing reform program. 1991, January 29, Vanke A shares in Shenzhen Stock Exchange. The second stage: the outbreak of real estate and stable period (1991-1997) 1991 to 1992, the outbreak of the Chinese real estate, especially Dengxp inspection of the South after the rush all over the country hundreds of billions of funds toward the sea, Beihai, Guangxi, Guangdong and other southern coastal city of Huizhou. Then is: do not know anyone in real estate, but everyone knows that real estate is a lucrative industry, results in the East and West, together forging ahead, only for the money, do not ask means; as long as the results, regardless of the process; the non-rational movement patterns leading to the bust, was devastated. After 1993, the macro-control overheated real estate investment trends have been curbed. Chinese real estate development of this into the relatively stable period. During the great historical events occurred as follows: September 13, 1991, Feng Lun, who signed up for high-tech investment in agricultural co-head of Hainan, when Feng Lun, Wang rights, Liu Jun, Yi Di, Pan Shiyi, Qi-Fu Wang 6 accounted for approximately 65% of the company&#39;s total shares. &quot;Agricultural high investment&quot; as the predecessor of MassMutual. June 12, 1992, Beijing announced go-vern-ment, &quot;the housing system reform plan&quot; and seven other supporting measures, and was fully implemented on July 1. Vanke established in 1992, dominated the real estate industry, started by the diversified real estate development led to the specific business strategy adjustment. In 1992, the rapid development of China Vanke cross-boundary operations, focusing on development of the southeast coastal areas of real estate and equity investment business. Shanghai, Qingdao, Tianjin, project development success, the size of the company laid a firm foundation. June 16, 1992, approved by the Foreign Economic Relations and Trade, China Overseas Group was formally established. August 20, 1992, China Overseas listed on the Hong Kong Stock Exchange, becoming the first business listing in Hong Kong to Chinese enterprises, was 99 times subscribed, the freezing of funds 75.8 billion Hong Kong dollars, setting a record at that time. September 1992, Guangzhou Poly Real Estate Development Company established national real estate development for the qualification. November 23, 1992, Hengda Real Estate Company A shares issued by an approved circulation in Shenzhen Stock Exchange, stock code: 000 502. December 1993, Vanke renamed &quot;Vanke Co., Ltd.&quot; September 1994, held its tenth anniversary Vanke Series celebration. Participation in decision-making in 1994, 100 Sunshine Plaza, Beijing Vantone New World Development, created the first classic story of Beijing real estate. November 6, 1997, Guangzhou Poly Real Estate to participate in land reform activities in the first land auction bidding to 87.98 million yuan alone Beijing South Block House bid. The third stage: active phase of real estate (1998-2002) In 1998, the Chinese real estate there is a new thing, the so-called &quot;Reformed&quot; direct housing distribution to be flat payment of housing subsidies. This policy came out, hopes for the new mortgage. Since then, gradually enter the Chinese real estate market of the active period, the birth of the real estate market. This also occurred during some of the more influential of the events: Second half of 1998, Vanke launched the &quot;million passengers will be&quot; for the company and effective communication between customers play an important role, being the media as the &quot;trigger estate business innovation initiatives.&quot; February 1999 Bank of China issued the &quot;Consumer Credit regarding the development of guidance.&quot; That &quot;active consumer credit, on promoting consumption, expanding domestic demand, promote production, to support sustained, stable development and Tiaozheng credit structure, Tigao quality of credit assets, has very important Yi Yi.&quot; Ci after the release of the document, China Xin 1 round of bull market officially started in real estate. November 2001, &quot;Forbes&quot; magazine named the &quot;world&#39;s best 300 small businesses,&quot; Vanke Company ranked sixth. March 2002, Pan Shiyi, SOHO China Limited established. August 8, 2002, China Overseas Property Ltd in Shenzhen, incorporated on August 28, formally adopted in the approval of the sea real estate in the mainland A share market into the counseling period. August 2002 Guangzhou Hengda Industrial Group Co., Ltd. (hereinafter referred to as: Hengda Group) through legal person shares 41,864,466 shares of the transferee company and become the largest shareholder of the company. During the year 2002, Vanke sales in the country house more than 11,000 units, according to operators of residential sales area, Vanke has become the world&#39;s first developer. April 1, 2003, Bank of China issued the &quot;Circular on Further Strengthening the Administration of the real estate business credit&quot; (article 121). This document is a new start after a real estate bull market, the central go-vern-ment for the first time to take the &quot;suppress overheated real estate&quot; measures, indicating that the central go-vern-ment on the property from support to &quot; vigilant. &quot; June 2003 restructuring of Beijing Capital Group Co., Ltd. established its real estate Beijing Capital Land Ltd, announced in Hong Kong H share global offering of 564 million shares at an issue price per share not more than 1.68 Hong Kong dollars. Offering first home buyers accounted for about 35% of share capital has increased. July 30, 2003, in the founding of the sea real estate the official signing Shanghai East project. The total development area of about 600,000 square meters, with a total investment of about 6 billion yuan. In 2003, SOHO, annual sales reached 3.32 billion yuan, the highest single item sales high. Phase IV: the real estate regulatory period (2003 - present) &quot;Country 8&quot; to &quot;the six&quot; from &quot;control&quot; to &quot;re-regulation&quot;, the central bank strictly controls the text of heat has not tried the 121 mortgages, real estate in China is facing a new policy challenges. Since 2003, China&#39;s real estate macro control policy continuously, can not be simply interpreted as a developer of survival of the fittest, or merely a redistribution of land resources, but should be phased real estate market adjustment signal, industry standardization , the deep-going structural adjustment will take China&#39;s real estate market will thus entered a new stage of development. October 2003, the Hong Kong Stock Exchange listed company Capital Land (H K2868) and the State Development Bank signed an agreement, reached a 10-annuity amounting to 4.5 billion yuan of credit loans, preferential interest rates than regular loans stood at 10%. These loans will be used for first home buyers credit for a land development. This is the national development bank loans this year one of the largest lines of credit. In 2003, Tianhong Group were involved in the National Olympic Stadium and Olympic Village project, and the Wukesong Olympic Games in Shunyi Olympic Water Sports Hall of tender of the Commonwealth, and all were successful. Subsidiary of Network Po industry has developed Huilongguan Longhua Park Area, En Jizhuang Second District North Project, Shuguang Garden, Huilongguan Dragon Court, Mission Hills International Garden and other projects. January 2004, China Vanke was &quot;21st Century Talent Report,&quot; and other units selected for the &quot;top ten real estate industry employers&quot; one. February 4, Vanke Group, China Merchants Bank awarded &quot;Diamond Customer&quot; No.. March 30, 2004, Ministry of Land Resources, Ministry of Supervision jointly issued &quot;on the continued operation of the bidding auction of land use right transfer cases to monitor the work of law enforcement notice&quot; (the &quot;Decree 71&quot;), provided on August 31 after , no further grounds of the historical legacy operating lease agreement with the land use rights. But the state-owned land use rights to public auction and sell standard way. South Meijiang Investment and Development Co., Ltd. Shenzhen, set up the background of the total assets of more than 4 billion yuan in Tianjin Binhai Investment Holding Group to enter the Pearl River Delta area of real estate investment company established specifically. Development in Shenzhen, the first item is the right court left hospital. First half of 2004, &quot;Hengda Real Estate,&quot; to maintain the sound development trend, the State Council Development Research Center of Enterprise Research Institute, Tsinghua University Real Estate Institute as a &quot;Chinese real estate wealth creation ability of the company top 10.&quot; September 2, 2004, the CBRC issued &quot;commercial bank real estate loan risk management guidelines&quot; to control the risk of commercial banks, mortgage requirements accordingly. October 2004, the Ministry of Construction Policy Research Center of China issued a comprehensive denial, &quot;said real estate bubble,&quot; the special report. The report by China&#39;s current real estate market analysis and judgments, concluded that: &quot;The bubble that does not hold, there is no sign of China&#39;s real estate financial crisis.&quot; This document will each sector differences on the open real estate issues . November 6, 2004 a value of more than 900 million yuan of land transfer contract signed in Beijing, which is Land and Natural Resources prohibits the transfer of land by agreement after the sale by tender, Beijing, the first piece of land. Access to land is the Beijing Capital Land. This is a total of more than 120,000 square meters land. March 2005, the State Council issued the &quot;stable housing prices on the real notice.&quot; The document stressed that: &quot;housing prices rose too fast direct impact on urban households to improve housing conditions, financial security and social stability, and even affect the healthy operation of the national economy&quot;, and called the local go-vern-ment attaches great importance to the Housing real estate prices, clearly stated: &quot;inadequate control measures, resulting in the local real estate market fluctuations, economic stability and social development of the region is running, to investigate the responsibility of the person in charge.&quot; This notice is known as the &quot;national eight.&quot; Spring Real Estate Fair in Shenzhen in 2005, the court left to the right hospital is similar to &quot;performance art&quot; of marketing, and carefully arranged the &quot;hand art&quot; theme of the scene, stunning the audience, and was a great buzz. May 27, 2005 China Resources was awarded in 2005 (fifth) a strong Chinese real estate companies. July 1, 2005, Beijing Capital Land Ltd (2868.HK, hereinafter referred to as BCL) announced on, will be the world&#39;s largest real estate investment companies - Singapore GIC Singapore go-vern -ment Industry Investment Ltd&#39;s (RecoZiyangPteLtd) second &quot;marriage&quot;, a joint venture in Shanghai, &quot;a new real estate investment&quot;, business scope includes the development, operation and management of domestic residential, commercial and office property, and engaged in real estate-related investment, acquisition. July 14, 2005, R &amp; F to H shares listed on Hong Kong main board model. July 24, 2005, Beijing Poly ridge villas for sale. Introduced the basic villa opening day sold out, turnover of more than 3 million. August 2005 China Resources Land (Beijing) Co., Ltd. to 2.565 billion Qinghe Town, Haidian competition to obtain the high price of residential and ancillary land. In 2005, as a professional developer, the sun has developed a total of 100 in the country more than 10 projects have been built with total construction area of over 4 million square meters; At present, an annual increase of more than 1 million square meters development area. By the end of March 2005, the State Council promulgated the &quot;effective stabilizing housing prices on notice&quot; that the &quot;national eight.&quot; April 28, 2006 the central bank announced: RMB benchmark lending rate by 0.27 percentage points. May 17, 2006, &quot;six countries&quot; issued, caused a lot of controversy, great response. ... ... Vanke cut prices now of reasons: 1. Difficulties in financing As you may know real estate and capital-intensive industries, whether there is sufficient funding is the key to success or failure, but this year the state&#39;s macro regulation and control continuous days of making real estate business is not better than, Vanke may be no exception, not the stock market this year economy, like last year&#39;s casual issuance of the bond issue may be this year, investors voting with their feet, not to mention its stock price has dropped Vanke comparison, therefore the price reduction is probably Vanke financial difficulties in recent Vanke to the people&#39;s livelihood 3.0 billion of bank loans is said to have been rejected. 2. Rapid capital return Vanke has been &quot;advertised&quot; themselves never cover their plate, has always been rapid development, fast sales, but this idea is the most important thing is a lot of financial support, and a similar reason, due to financing difficulties, so I want to get from the bank funds, then sell their products through mortgage is also a good way to get the other side, bank loans is difficult because the problem, and very anxious, because the banks lend out money if, the next unfortunate that bank, bad that time assets increased, (such as residential flats there), so in the moment this stage, companies need money cut prices by means of the original cash in bank funds is understandable. 3. Lot problem Vanke projects beyond doubt is not how it seems like lots. The real estate sector proverb: lots lots lots lots Vanke problem because it can attract the consumer groups is limited, and because there are many properties for sale around the considerable number of lots to be far superior to China Vanke, such as Lijiang, apartments, and Vanke City of Charm in the industrial area, they will have many hidden costs of living, supporting a problem, children&#39;s education is a big problem, so in addition to the brand outside of Vanke&#39;s house and not much advantage, to attract people to take lower prices, after all, non-bought-not many people there, a house, sell a set of the operator! 4. Out dead or alive? Last year, Green City is said to balance the financial reports more than 100% than the simple sense that is insolvent, it is estimated Vanke It does not figure to go, but at least better than some small businesses, so Vanke will cause some developers to cut prices cater to the trend, China Vanke can take the opportunity to reshuffle, Gaosi those small developers, as engaging in immortality can make peace together to form an oligopoly, re-completion of the real estate market pricing. By that time, or that Wanke Wanke, may be more cattle x. 5. Where is that house prices would fall? According to UN reports, in a perfect state benefits (please pay special attention) and reasonable price should be the family income of 5 to 10 times, according to this theory, Hangzhou revenue last year, about 21,689 yuan, according to the price calculation, price set should all be considered in the middle price between 22w to 44w is 33w, but according to the urban average price 1.2w count now, 90 of the price is down 70% to about 108w, while the figure in Hong Kong and 97 from the highest to the lowest price The decline actually surprisingly similar. 6. Why house prices risen so a brain will fall? In accordance with the above said, or in accordance with the theoretical analysis, China&#39;s housing prices can not be absolute to the high, but why they arrive at a so high? Many people say they have no money to buy a house, but also the last to buy the so-called discount house, and lose his own rest of my life, even if when the house slaves. You may have a little no attention to real estate speculators who purchase more than welcomed by the developers, because the same have 100w, buyers may buy a house, the money to pay off, and real estate speculators who will buy three sets, to pay the down payment, then it is equivalent to the real estate agency to sell three houses, three sets of banks is equivalent to lend the money out of the house, although the so-called risk, but compared to other projects, the lowest mortgage risk , and in housing prices, when the most profitable last year, CCB called Asia&#39;s most profitable bank, the main contribution, everyone in this. By now, wait until the real estate speculators who have found another way to die, this is the real form of the so-called problem of insufficient effective demand. Then reverse the result of supply and demand is very simple and very clear. The invisible hand will eventually play the role it should play. 7. What is difference between home and stock? Many people like to check out, I am sympathetic, but there is one thing, houses and stocks What is the difference? Or you buy a house and stock of mind What is the difference? I&#39;m afraid not want the house down, you are not using it, and there is no direct relationship from the living. So, anyway, at least when you buy a house, possibly in part be used to invest in, why, if you know the future of house prices to fall 50%, you will definitely sell their houses now, when you do not say this house is brought live. Of course, this does not mean that developers will not be liable, as a market leader, Vanke before the price cuts still continue to advocate on housing prices, although this text does not enter the contract, then such behavior for a consumer selection will play a subtle change, because now playing 7.5 fold Wanke, who can guarantee to the New Year not to play 5 discount? Well, now playing off of people are not the same as 7.5 units in it? Therefore, this behavior is a great harm to the brand, and now that China Vanke good discount, I guess no one actually buys the house Vanke, because they are waiting for a bigger discount, the formation of this and the stock market bear market totally a token, if the price is now confirmed that the peak, then any sell a house are correct. Vanke, but is just one step ahead. Maybe wait until the market react, may buy a house off of 7.5 is likely to be a great joke. From this perspective, it is easy to see why China Vanke cut prices, which fled the stock market inside the top of essentially the same reason.