Niu Xiaojuan, deputy general manager of the property business department of China Index Research Institute, told the client that there is a huge development potential for the transformation market of old residential areas in the future. First, the number of old residential areas that need to be transformed is huge and is still increasing. Second, the transformation of old residential areas will bring huge social and economic benefits, stimulate investment, promote employment, and improve the grassroots social governance time. Third, it will bring huge development opportunities for related industries, which will have a strong direct pulling effect on the construction design, building materials, construction, property management and other industries. It will also create a huge development space in the service industries such as pension, care, medical and domestic services.
Shao Yu, chief economist of Dongfang securities, also believes that the transformation of old residential areas will bring more obvious pulling effect to home decoration, building materials, including upstream industries.
It does not stimulate the real estate market
However, different from the shed reform, the transformation of old residential areas will not bring changes in quantity, so the direct pulling effect on the real estate market is limited. Shaoyu said: the transformation of old residential areas has increased investment. Relatively speaking, the added value of the house itself will increase to a certain extent, which will increase the investment value of the house itself. However, for the whole market, it may bring some optimized supply, which may not have a greater pulling effect like the shantytown renovation. However, Yan Yuejin, director of Shanghai E-House Real Estate Research Institute, believes that the transformation of old residential areas will help stabilize house prices. Yan Yuejin pointed out that the renovation of old residential areas is equivalent to the revitalization of property services, which helps to introduce more demand, thus helping to stabilize house prices. In addition, the performance of many old residential areas in the rental market is not particularly good. After the transformation, the supply and demand of the rental market will be changed, thus affecting the rental market. Source: editor in charge of Sino Singapore Jingwei: Yang Zeyu_ NF6036
However, Yan Yuejin, director of Shanghai E-House Real Estate Research Institute, believes that the transformation of old residential areas will help stabilize house prices.