What Is Wholesale Real Estate?

Real estate is a comprehensive and complex concept. From the perspective of physical phenomena, it is composed of buildings and land. Land can be divided into undeveloped land and developed land. Buildings exist on land and are combined with land. Building refers to the product of artificial construction, including two categories of houses and structures. ^[1]

[fáng dì chn]

Judging from the composition of the total funding sources from January to March 2013, domestic loans accounted for

1. Sales price data.

In 2019, the increase in sales prices of commercial residential buildings in 70 large and medium-sized cities has steadily declined in June.

According to preliminary estimates, the sales prices of newly-built commercial houses in four first-tier cities rose by 0.2% month-on-month, a decrease of 0.1 percentage point from the previous month. The sales prices of newly-built commercial houses in 31 second-tier cities increased by 0.8% month-on-month, the same increase for the third consecutive month; the sales prices of second-hand housing increased by 0.3%, a decrease of 0.2 percentage points from the previous month. The sales prices of new commercial residential buildings in 35 third-tier cities increased by 0.7% month-on-month, a decrease of 0.1 percentage point from the previous month; the sales prices of second-hand housing increased by 0.7%, an increase of 0.1 percentage point from the previous month.

2. Development investment data.

In the development stage, real estate investment data also remained stable. The latest data show that from January to June 2019, the national real estate development investment was 6,09609 billion yuan, an increase of 10.9% year-on-year, and the growth rate fell 0.3 percentage points from January to May. Among them, residential investment was 4,461.7 billion yuan, an increase of 15.8%, and the growth rate dropped by 0.5 percentage points. ^[3]

Regarding the positioning of the Central Committee of the Communist Party of China on whether to live or not.

In December 2016, the Central Economic Work Conference proposed that "the house should be used for living, not for speculation", and comprehensive use of financial, land, fiscal and taxation, investment, legislation and other means should be used to accelerate research and development in line with national conditions and adaptation The basic system and long-term mechanism of market laws not only suppress the real estate bubble, but also prevent large fluctuations. ^[4-5]

First, the average sales price. According to the National Bureau of Statistics, the average sales price of commercial housing nationwide has changed as follows.

For the whole year of 2004-2017, the average sales price (yuan / square meter) of commercial housing nationwide was about 2778, 3167, 3366, 3863, 3800, 4681, 5032, 5357, 5790, 6237, 6324, 6793, 7476, 7892. ^[9]

In October 2013, Wang Jianlin (Chairman of Wanda Group) was named the richest man in mainland China with RMB 86 billion. ^[16]

In 2012, Greenland Group entered the Fortune Global 500 and ranked 483, becoming the first Chinese real estate company to be listed on the Fortune Global 500. ^[21-22]

From 2011 to 2017, the revenue from the transfer of land use rights across the country was 3,331.6 billion yuan, 28,422 billion yuan, 4,125 billion yuan, 429.4 billion yuan, 3,254.7 billion yuan, 37,457 billion yuan, and 525.9 billion yuan. ^[26]

Real estate is also called real estate in economics because of its own characteristics, namely the fixed and immovable location.

There can be three forms of existence: the integration of land, buildings, and land. In the real estate auction, the auction target can also have three forms of existence, namely land (or

(1) The real estate industry refers to the industries engaged in the development, operation, management and service of land and real estate.

(2) The real estate industry mainly includes the following:

1. State-owned land

There are many ways to ensure the quality of real estate development, but conscientiously implementing the ISO9000 standard and implementing quality certification are indeed the only way. Real estate development enterprises must pay close attention to the following five links in the ISO9000 implementation.

1. In the process of project establishment, the overall planning and regional planning of the city shall be obeyed, the opinions of the planning department shall be fully respected, and the bids and contracts shall be strictly reviewed.

2. Do a good job in the planning of each project. The entire process from market research, investment approval, land acquisition, demolition, commissioned design, and commissioned construction to completion and delivery should be carefully and carefully planned to achieve strategic planning and win thousands of miles; According to the results of the planning, a quality plan is prepared to guide the implementation of project development and construction, and to ensure that the quality indicators, construction period and cost of project development and construction are reasonable.

3. In strict accordance with the requirements of ISO9000 for procurement and the provisions of the State's "Regulations on the Quality Management of Construction Projects", the evaluation and selection of sub-contractors in planning, design, construction, and supply shall be made.

1. When commissioning planning and design, based on the review of qualifications, general projects can use the method of negotiation, and major projects can use bidding, or even international bidding. In addition to complying with laws and regulations, design output must meet the design intent of urban planning and development enterprises. Whether it is a single building or a joint development, it should be in harmony with the surrounding buildings and environment, and reflect the superb architectural art of the design masters, beautify the city, and provide a comfortable and elegant living space for the citizens. Development enterprises must not only care about their own economic benefits but not social benefits.

2. When commissioning construction, the method of project bidding can be adopted. On the basis of reviewing qualifications, priority is given to construction enterprises that have passed ISO9000 certification.

3. It is necessary to evaluate and select suppliers to ensure the quality of the three major materials, engineering equipment and other materials.

Fourth, according to the requirements of ISO9001, do a good job of quality control in the construction process to ensure project quality.

After the project bidding, the development enterprise should not let it go, but strictly monitor it. After making the pre-construction preparations, detailed technical explanations should be made. Regardless of whether the construction enterprises have passed the quality certification, they should be required according to the ISO9000 standard.

1. Cannot subcontract the main structure and other illegal subcontracting;

2. For each project, a quality plan must be prepared to clarify the requirements for construction process control;

3. For key processes and special processes, work instructions must be prepared and operated strictly in accordance with regulations;

4. Use qualified construction equipment and testing equipment, and ensure construction safety;

5. Special processes must be strictly controlled to eliminate hidden dangers of future accidents;

6. Comply with laws and regulations, and should not cause pollution to the surrounding environment.

5. In strict accordance with the requirements of ISO9001, strictly control the quality of construction materials and engineering.

1. For the project entrusted with supervision, the development enterprise must conduct qualification review, evaluation and selection of the supervision enterprise, and then entrust supervision;

2. During the incoming inspection, emergency release is not allowed (it is put into use before the inspection), at least the steel and cement are prohibited from being released;

3. During process inspection, exceptions are not allowed to be reordered (the construction of the next process is too late for inspection) or must be strictly approved;

4. When qualified inspection results are not obtained for sub-items and branch projects, no final inspection (completion acceptance) is allowed.

Of course, real estate development enterprises still have a lot of important work to do in the implementation of the standard, this article does not intend to describe them one by one.

For real estate development enterprises, in addition to implementing ISO9001, they must also implement ISO14001 (International Standard for Environmental Management) and OHSAS18001 (International Standard for Occupational Safety and Health), so as to make housing or workplaces suitable, safe, durable, Environmental, economic and other five major properties; can the city's three-dimensional environment (water, soil, atmosphere, etc.) can be controlled and improved, and can make people and nature harmonious; only in this way can we win the favor of modern urban residents, broaden the market Real estate development companies bring benefits and promote development in this area.

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Real estate is a symbol of wealth. It is estimated that China's national real estate market value in 2017 was about 300 trillion yuan, about 4 times the GDP, and 6 times the market value of the stock market. U.S. President Trump is a real estate agent, and Hong Kong family wealth managers are mostly real estate agents. At one time, China's richest man was a real estate agent. The real estate industry has long been super-rich.

The real estate market is a place or field that engages in the sale, lease, sale, and mortgage of real estate and land. Real estate includes residences as personal consumption materials of residents, as well as factory buildings and office buildings as production materials. Therefore, the residential market is part of the subsistence market, and the non-residential property market is part of the factor market. Real estate is also a natural commodity, so establishing and developing a market for real estate transactions is a requirement for economic operation.

The real estate market is the basic condition for social reproduction in the real estate industry, and can drive the development of many industries such as the construction industry and the building materials industry. The real estate market can realize the real estate value and use value in time through the market mechanism, which can improve the economic benefits of the real estate industry, promote the effective allocation of real estate resources and a virtuous circle of real estate construction funds. The real estate market can guide the rationalization of residents' consumption structure, which is conducive to improving living conditions and raising the living standards of residents. Therefore, the real estate market is the most representative and most important part of the real estate market system, and it is in a dominant position.

According to data released by the National Bureau of Statistics, national real estate development investment increased by 34% year-on-year, but the growth rate fell by 1.1 percentage points from January to February. This shows that developers are cautious about the market outlook and have begun to reduce the scale of real estate investment. In addition, the proportion of developers' self-raised funds continued to rise, reaching 36.98% as of the first quarter, which indicates that the credit environment is still not optimistic.

Real estate investment growth slows

Data show that from January to March, the national real estate development investment was 884.6 billion yuan, a year-on-year increase of 34.1%, a 1.1 percentage point decrease from the January to February period, and a 1 percentage point decrease from the same period. It is expected that in the next few months, the enthusiasm of developers for investment will continue to gradually cool down. Sheng Laiyun, a spokesperson for the National Bureau of Statistics, pointed out that from the situation in the first quarter, the effect of real estate regulation continues to show, one is that the investment demand for real estate has been significantly curbed, and the other is the trend of excessive real estate prices in some cities. The housing price data of 70 large and medium-sized cities monitored has shown that the real estate price data of 7 of these cities fell in February, and the growth rate of house prices in 35 cities fell.

While the scale of investment declined, the national real estate development prosperity index was 102.98 in March, a decrease of 2.91 percentage points over the same period. Under the strict control, the state-of-the-art prosperity index has not yet stepped out of the downward channel, and it is expected that it will bottom out in the second half of the year, and the valley value will be higher than the valley value of the previous round before it is likely to enter the upward channel.

Commercial housing sales area rebounds

From January to March, the newly started floor space of real estate development enterprises nationwide was 208 million square meters, a year-on-year increase of 23.4%, a decrease of 4.5 percentage points from the first two months, and a decrease of 37.4 percentage points from the same period last year. From the monthly situation, the floor space of newly started housing in the country in March was 208 million square meters, a year-on-year increase of 19.3% and a month-on-month increase of 8.8%. It is expected that in the next few months, new housing starts will continue to rise, mainly driven by 10 million units of affordable housing. In addition, the large scale of land purchased by development companies will also increase the amount of new starts. Of course, due to the market downturn, it will also appear. The slow start of some enterprises.

Housing companies' funding situation is still tight

From January to March, the source of funds for real estate development enterprises was 1,926.8 billion yuan, a year-on-year increase of 18.6%, an increase of 2.3 percentage points from the first two months. This is the first time that the year-on-year increase has continued to decline for a year, but the increase is still higher than the same period last year The sharp drop of 42.8 percentage points is still significantly lower than the historical average of the past ten years.

In terms of the composition of funding sources for development enterprises, domestic loans have reached 383.8 billion yuan in the three months, an increase of 4.4%; foreign capital utilization of 14.4 billion yuan, an increase of 45.2%; self-raised funds of 712.6 billion yuan, an increase of 27.2%; other funds of 818.6 billion yuan, an increase of 18.7%. Among other funds, deposits and advances were 482.5 billion yuan, an increase of 28.7%; personal mortgage loans were 207.6 billion yuan, a decrease of 5.3%.

Lack of trust in the real estate industry

The "Social Psychology Blue Book" released today by the Chinese Academy of Social Sciences pointed out that in 2010, survey results in Beijing, Shanghai and Guangzhou showed that the overall social trust of citizens in the three cities was a low level of trust. Among them, the citizens of the three places believe that the trust in the advertising and real estate industries is lacking, and the trust crisis in the food and pharmaceutical industries is serious. Residents have the highest level of trust in government agencies and the lowest level of trust in the business sector. The social trust of Shanghai and Guangzhou is slightly higher than that of Beijing.

Among the three cities, Shanghai's total social trust score is 65.7, ranking first in the three cities; Guangzhou's social trust score is 63.7, ranking second; Beijing has the lowest level of social trust in this survey, with a score of 59.3 .

Housing market focus

Due to severe purchase restrictions and overcapacity in first- and second-tier cities, a large number of developers have entered and transferred to third- and fourth-tier cities.

Eight restrictions on buying new homes

Real estate development five certificates and one booklet application process

In principle: construction land planning permit-state-owned land use right certificate-construction project planning permit-construction project construction permit (also known as construction project start permit)-commercial house pre-sale permit

See below for details:

I. Construction land planning permit and state-owned land use permit

1. Opinions on site selection (checking whether the nature, scope and area of the land conforms to the overall urban planning) (30 working days)

program:

(1) The enterprise provides an application report, planning application form, general floor plan, land transfer agreement or state-owned land use certificate, business license and qualification certificate, and reports it to the Planning Bureau for land use.

(2) Examination of the site transfer to the head office

(3) Approved by the newspaper bureau business meeting

(4) Obtaining opinions on site selection

2. Plan the field survey of the institute, place the location map and collect the measurement fee

3 Construction land planning permit (30 working days)

(1) The enterprise holds the location map, site selection opinion, and application for land use for review

(2) Approved by the competent director and mayor

(3) Pay the bill and obtain the land use planning permit

4 State-owned land use certificate (60 working days)

(1) Application for land use, aerial survey plan, floor plan, land transfer agreement, construction land planning license, relevant documents from both parties of land transfer, and power of attorney to the Land Utilization Division of the Land Administration

(2) Land evaluation

(3) Land bureau survey vs. on-site survey and demarcation map

(4) Pay land transfer fees and deed tax, and obtain a state-owned land use certificate

Construction project planning permit

1. Municipal fire brigade stamp (15 working days)

(1) Hold the fire approval form and a full set of construction drawings to the Construction Fire Examination Division of the Municipal Fire Brigade for approval

(2) Issuing the fire protection design review opinion and seal of the construction project planning permit application form

2. Civil Air Defense Certificate Municipal Air Defense Office handles self-construction procedures within 60 working days

3 Real estate development and construction scale (30 working days)

The construction unit holds the unit application, general plan, and fund certification to the Planning and Development Office of the Municipal Housing Management Bureau.

4 Construction project planning license (30 working days)

(1) The construction unit holds the application report, construction project planning application form (fire seal), land requisition, land use planning permit, general floor plan, full set of construction drawings, and four sets of aerial survey drawings to the Construction Management Office of the Municipal Planning Bureau.

(2) The above materials shall be submitted to the Director and the Director for signature after being reviewed by the General Office and the Bureau Business Council

(3) Pay the bill and pay the fee, obtain the construction planning permit, and the inspection line notice

5. Release report (15 working days)

Hold the release notice and the construction drawing and red line drawing to the survey team of the Planning Institute for release.

Construction Permit (Construction Committee)

1. Report construction (1 working day)

Information provided: construction project planning permit, land use planning permit, land permit, 4 application forms for application for construction, red line drawing, construction drawing, general plan

2. Site survey (3 working days)

3 Organize tenders

4 Seismic review

5. Review of construction contracts

6. Payment of fees, application for construction project construction permits (construction contract, survey contract, design contract, supervision contract, application form for construction, project budget, bid winning notice, payment invoice

Fourth, commercial housing pre-sale permit (15 working days)

The applicant unit holds the business license, qualification certificate, land acquisition, annual development and construction scale, construction project planning permit, red line diagram, construction contract, construction permit, sales control table, standard floor plan, property management content, Sales section, issued on the 15th

Five, supporting projects

Construction pipeline project planning permit (15 working days): construction unit holding application report, construction project planning application form, land requisition, land use planning permit, general floor plan, pipeline approval plan, pipeline planning office of the Municipal Planning Bureau

History of China's real estate market development

Phase I : Theoretical breakthrough and pilot stage (1978-1991)

In 1978, the theoretical circles put forward the views of housing commercialization and land property rights. In September 1980, the Beijing Municipal Housing Integration Construction Office took the lead in listing and established the Beijing Urban Development Corporation, which opened the prelude to comprehensive real estate development. In 1982, the State Council conducted pilot sales of houses in four cities. In 1984, Guangdong and Chongqing began to collect land use fees. 1987-1991 was the initial stage of China's real estate market. On November 26, 1987, the Shenzhen Municipal Government issued the first public tender for the sale of housing land. In 1990, the Shanghai housing reform plan was introduced, and the housing provident fund system began to be established. Since 1991, the State Council has approved the overall plans for housing reform in 24 provinces and cities.

The second stage : the stage of irrational speculation and adjustment (1992-1995)

The housing reform was fully launched in 1992, and the housing provident fund system was fully implemented. The "Residential Project" started in 1993. After 1992, the real estate industry grew rapidly and rapidly, with the highest monthly investment growth of 146.9%. The real estate market was chaotic in some areas for a time, and a more obvious real estate bubble appeared in some areas. After the macroeconomic control at the end of 1993, the growth rate of investment in the real estate industry generally fell sharply. The real estate market began to recover after a period of downturn.

The third stage : the stage of relatively stable and coordinated development (1995-2002)

With the continuous deepening of the reform of the housing system and the improvement of residents' income levels, housing has become a new hot spot for consumption. After 1998, with the cancellation of the housing distribution system and the implementation of the mortgage policy, real estate investment has entered a period of steady and rapid development, and the real estate industry has become one of the pillar industries of the economy.

The fourth stage: prices continue to rise, a new stage of the introduction of a number of control measures (since 2003)

Since 2003, housing prices have continued to rise, and the prices of housing sales in most cities have risen significantly. Subsequently, a number of regulatory policies for the real estate industry were introduced. The earliest was 1978, and it has gone through 40 years of history.

What Is Wholesale Real Estate?

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