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Real estate

2024-12-25

Real estate

Real estate is a comprehensive and relatively complex concept. From a physical perspective, it consists of buildings and land. Land can be divided into undeveloped land and developed land, with buildings existing in conjunction with the land. Buildings refer to products constructed by humans, including two main categories: houses and structures.

Real estate is both an objectively existing material form and a legal right. The former refers to the general term for property and real estate, including land and permanent buildings on the land, as well as the rights derived from them. Property refers to various houses built on land, including residential shops, factories, warehouses, and office spaces. Real estate refers to land and a certain space above and below it, including various underground infrastructures and surface roads. Due to its fixed location and immobility, real estate is also referred to as immovable property in economics. There are three forms of existence: land, buildings, and the integration of land and buildings. In real estate auctions, there are also three forms of auction items: land (or land use rights), buildings, and material entities with their rights in a state of integration. Legally, real estate essentially represents a type of property right, which refers to various economic interests contained within the real estate entity and the various rights formed as a result, such as ownership, usage rights, mortgage rights, pawn rights, leasing rights, etc. Due to its close relationship with government fiscal revenue and the excessive issuance of currency by the government after 2008, China's real estate began to develop abnormally after 2008, causing serious impacts and burdens on urban industry and commerce as well as citizens' lives.

In June 2020, Hainan made a decision: resolutely break the "real estate dependency syndrome," continue to strictly implement policies such as universal purchase restrictions, and implement a system of selling existing houses. In March 2021, Guo Shuqing stated: "The core issue in the real estate sector is still that the bubble is relatively large; there is a strong tendency towards financialization and bubbling; it is the biggest gray rhino in the financial system."

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