Why does the growth rate of real estate investment in China keep declining?

In recent years, the real estate market continues to be hot, and house prices are rising, which has aroused the concern of public opinion and the government. In order to curb the excessive rise in housing prices and speculation in the real estate market, the government has successively introduced a series of regulatory policies, such as restricting purchases, loans and sales. These policies have a significant impact on residential investment, and investors' enthusiasm for buying houses has been restrained to some extent, resulting in a decline in residential investment.

2. The impact of the epidemic

From the end of 2020 to the beginning of 20021,the COVID-19 epidemic broke out on a global scale, which had a great impact on the global economy and all walks of life. Residential investment is no exception. Affected by the epidemic, many people's incomes are reduced or unemployed, the demand for buying houses is declining, and investors' willingness to invest is suppressed to some extent. In addition, the epidemic has also led to the stagnation of the real estate market in some cities, and the demand for new houses is in short supply, which has intensified the wait-and-see mood of investors.

3. Tightening the bank credit policy

Bank loan is one of the main sources of funds for buyers, and the bank's credit policy also has a certain impact on residential investment. In recent years, with the rise of housing prices and the intensification of the bubble trend in the real estate market, the government has strictly supervised and controlled bank credit, and the bank mortgage policy has been tightened accordingly. This makes it more difficult for homebuyers to get loans, and reduces investors' enthusiasm for investment, thus affecting the scale and growth rate of residential investment.

4. Decline in return on investment

The ultimate goal of residential investment is to get a return on investment, but with the rise of housing prices and the regulation of policies, the return on investment has gradually declined, and investors' willingness to invest has also decreased accordingly. In addition, there are some risks in residential investment, such as asset depreciation, declining rental returns, property management and other issues, which may also lead to a decline in investors' investment enthusiasm.

To sum up, the main reasons for the decline in residential investment are policy regulation, the impact of epidemic situation, the tightening of bank credit policy and the decline in return on investment. These factors interact with each other, leading to a decline in the scale and growth rate of residential investment. In the future, with the changes of policies and markets, the trend of residential investment may also change.