A sharp drop of 10.2%! Real estate investment has cooled down. Is your house still worth the money?
Recently released data show that national real estate development investment fell by 10.2% year-on-year from January to July this year, which is a very shocking drop.
This figure reveals many aspects of information and will have a profound impact on the real estate market, home buyers and investors.
So, what is the reason behind this and how should we deal with such market changes?
Let's explore some of the reasons why real estate investment has cooled.
On the one hand, as the country continues to increase its regulation of the real estate market, including the introduction of policies such as purchase restrictions and loan restrictions, the market's heat has declined.
On the other hand, affected by the global economic environment and domestic market consumer confidence, capital flows have changed. Real estate is no longer the only investment outlet, and a lot of funds have begun to turn to other industries or fields.
In addition, adjustments to the housing supply system are also a major influencing factor.
The country encourages "housing for living, not for speculation" and promotes the development of the long-term rental market and affordable housing, which directly leads to changes in the supply and demand relationship in the traditional commercial housing market.
Faced with such a situation, it is particularly important for home buyers or investors to make wise choices.
For homebuyers, the first thing to do is to understand their own housing needs. Is it for self-use or investment? If it is for self-use, it is more important to pay attention to the actual living value and living convenience of the house; as an investment, it is necessary to pay more attention to the long-term appreciation potential and rental return rate of the property.
In the current market environment, choosing locations with good educational resources, convenient transportation and complete living facilities may be a relatively safe choice.
For investors, risk diversification has become one of the important strategies at present.
In addition to traditional purchases of physical properties, you can consider investing part of your funds in financial products related to the real estate market, such as real estate investment trusts (REITs) or real estate-related stocks, to diversify your portfolio.
In addition, it is also very necessary to pay close attention to policy trends and adjust investment strategies in a timely manner.
When the real estate market goes through such an adjustment period, it is particularly important to maintain calm analysis and rational decision-making.