China housing rental market will enter the REITs era. What exactly is the REITs era?

It is to package real estate into financial assets, and then let investors share the long-term benefits of real estate. This year, the state began to focus on renting houses, saying that renting houses may solve the long-standing problem of high housing prices in big cities in China. More importantly, the promotion of long-term rental housing can revitalize idle land, especially in some cities where there are many commercial and collective land, so it is very complicated to change the nature of land. Therefore, through leasing, revitalizing these lands and then pushing them to new markets, it not only increases the land supply, but also solves the housing problem of new citizens.

REITs is actually a kind of financial means, which can reduce the cost of real estate development and help the government or individuals to build more rental housing by turning real estate, which was originally a heavy asset, into financial assets and selling it publicly to let more people participate. Moreover, REITs model can distribute the rights and interests of this property to more people and attract more people to join it.

Although REITs projects in many places are only pilot projects at present, it is inevitable to improve the safety of rental housing from the perspective of national planning, and this financial asset model is expected to appear in more cities in the future.

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The report also puts forward and discusses REITs, a real estate trust and investment fund, and holds that the maturity of the housing rental market is inseparable from financial innovation tools and a set of policies and preferential tax policies behind them. By the end of 20 19, China has successively launched more than 30 REITs for housing leasing, which has made beneficial exploration in this field.

China housing rental market is about to enter the REITs era. ? According to the estimation of ICCRA Housing Leasing Industry Research Institute, the overall scale of China's housing leasing market is 2.52 trillion RMB. Referring to foreign experience, the scale of housing leasing REITs is about 300 billion RMB.