Economic Daily: Objectively Viewing the Reduction of Real Estate Investment in the Era of Stock Assets

In the first half of this year, the national online signing area of second-hand homes increased by 10.2% year-on-year, with second-hand homes accounting for 50.4% of the total transaction volume of new and second-hand homes. In 18 provinces including Beijing, Shanghai, Jiangsu, and Guangdong, the transaction area of second-hand residential properties exceeded that of newly built commercial residential properties. The second-hand housing market is quite active, reflecting China's transition into an inventory era in real estate. In the inventory era, real estate transactions will accelerate the shift from mainly new home sales to a balance of both new and second-hand home sales. In the past, the contribution of real estate to economic growth was largely reflected in the rapid increase in real estate development investment. In the inventory era, there will be no reliance on real estate to drive economic growth. Therefore, it is necessary to view the decline in indicators such as development investment, new construction area, and new home sales area objectively. As various regions actively implement policies to "control increments, reduce inventory, and optimize supply," the decline in real estate development and other indicators reflects local adherence to the central government's strict control over increments, as well as a rapid market adjustment towards a balance of supply and demand. The real estate industry will move towards refined, high-quality, and sustainable development, contributing to the continuous improvement of living environments and high-quality urban development.