For a city, the most direct reflection of the achievements of economic construction is the level of infrastructure construction and real estate development.

Many people have a misconception that real estate development = high housing prices = original sin.

But everyone seems to have forgotten what the housing conditions of the urban population in China were like in the era of welfare housing.

Housing conditions like Zhang Guoqiang and Su Wenjin before are actually not the worst, and they can be assigned a two-bedroom apartment with a small area from the unit, and it is barely enough for three generations of a family to live together.

But Zhang Guoqiang and Su Wenjin are both high-level workers after all, and they are already the elite of their age, and a large number of ordinary workers in the city still live in the compound until the beginning of the 21st century, and it is not uncommon for three generations of a family to live in a ten-square-meter bungalow.

Not only Bincheng, but also Kyoto, Shanghai, Yuzhou, Rongcheng... In almost every city of a certain size in China, the housing conditions of the ordinary urban population need to be solved urgently.

Otherwise, how could there be so many shantytown renovations in later generations?

The original intention of the original reform of housing commercialization was to solve the problem of people's housing difficulties. Welfare housing has been practiced in China for thirty or forty years, and many drawbacks have been exposed.

The administrative efficiency is low, the grassroots power is rent-seeking, the quality of housing is uneven, and it is difficult to break the barriers of departmental interests. There are so many that the time has come when we have to change it.

After the implementation of the housing commercialization policy, from an objective point of view, it really improved the living conditions of a considerable part or even most of the urban population in China, and achieved its original purpose. In fact, there are only two reasons why housing commoditization is demonized: First, housing commoditization has pushed up housing prices, which in turn have pushed up consumption, constituting substantial inflation and affecting the actual interests of the people. Second, do not suffer from widowhood but suffer from unevenness.

But in fact, neither of these two points is caused by the commodification of housing, and what really pushes up housing prices is not the commodification of housing, but land finance. It is true that real estate is a profiteering industry, but its profiteering refers to the use of a large amount of capital leverage for their own benefit, under the leverage of leverage, 30% of the profit of a single project is 100% or even higher than the actual investment of funds.

The real estate company develops a project, the complete development cycle of a project is about three years, and the average profit margin of a single project is 30%, that is, the annual profit margin is only 10%, so it seems that the real estate profit is still high?

Even if the 10 percent profit is reduced, the real estate developers will work on a voluntary basis, and they will not earn a penny, and those who shout that they can't afford to buy a house can afford it? No, they still can't afford it.

As for land finance, to a certain extent, it is also a mixed success, but in that respect, it is not that land should not be sold, but that land should not be sold by local governments.

It is often said that without land finance, there would not be so much infrastructure construction in the country, such as high-speed railways, highways, etc., but national infrastructure construction and land finance really have little to do with it.

The land transfer fee obtained from the land bidding, auction and listing of Huaxia does not need to be handed over or included in the budget, and all of it is retained by the local government. In the face of such a simple, direct, and effective way to make money, it is difficult for any local ruler to resist this temptation.

As a result, land prices are getting higher and higher, and the cost of real estate companies to acquire land is getting higher and higher, and this high-cost real estate company does not care, and the construction company does not care, and finally, the high cost is directly passed on to the buyer.

The slow rise in housing prices is one of the signs of the healthy development of the national economy, but if the rate of housing price growth exceeds the GDP growth rate, it will gradually lead to real estate speculation.

Therefore, the marketization of real estate is not a bad policy, and the construction of high-end commercial complexes is a good thing that is beneficial to the national economy, and the key depends on how specific policies are implemented.

As the saying goes, the butt determines the head, and with great ability comes how much responsibility you have. With the continuous improvement of Zhang Chen's strength, he will also think about many things that he has not considered before, constantly revise his line and strategy, and make some contributions to the progress of the whole society while achieving an increase in personal wealth.

In the past, Zhang Chen only wanted to copy the Wanda model, first pilot it in Bincheng, and then expand to second- and third-tier cities across the country, and did not plan to enter high-end business on a large scale.

But that thinking was changed by a paper he had read some time ago.

The paper, titled "Urban Complexes: A New Tool for Urban Revitalization," published in the SSCI journal Urban in '96, is actually nothing new, with only ten citations a year, but the author of the article listed a set of data that caught Zhang's attention.

Compared with low-end commercial complexes, although the return on investment is not much different, the driving effect on the urban economy is 5-10 times that of the latter, and with the increase of high-end business in the same city, its effect will be marginally decreasing, but its life span is about three times that of ordinary commercial complexes.

On a whim, Zhang Chen sent this set of data to the analysis center for analysis, and although there was a gap between the results and the author of the article, the gap was not large.

At this time, Sun Hongbin called Zhang Chen and said that the city hoped that Guangsha would take over the unfinished building of the concert hall plot. Zhang Chen naturally would not give up this land, and asked Sun Hongbin to strive to get a few plots of land around him, at least 60,000 square meters, to facilitate subsequent development.

Zhang Chen noticed that the rejection in Delfina's tone was not strong, and pushed the sunglasses on his eyes: "You foreigners only know that there are more than 1.2 billion people in Kyoto and Shanghai, and there are more than 50 cities with a population of more than 1 million. Bincheng is the second largest city in northern China except for Kyoto, with a population of more than 10 million. As for the spending power you mentioned, I'm not worried at all. ”

"Now that my project in Bencheng has just been approved, including the design, the entire project period is expected to take at least four to five years, and in five years, whether it is Bincheng or China, there will be a number of high-end consumer groups, even if this group is only one-tenth of that of Europe, and it is also LVMH's largest overseas market outside the United States. ”

This is a 72-foot Sanlorenzo SL82 with a hull length of more than 24 meters, which is considered a medium-sized yacht. In addition to Delphine and Zhang Chen, there were a total of 3 crew members on board, a captain, two sailors and waiters, all of whom were men with a height of more than 1.85 meters.

Delfina is not a pure gentleman, and the six months of working at McKinsey have not been in vain, and she has long believed that Huaxia will become one of LVMH's largest markets in the future, but LVMH's store opening strategy has always been cautious, and she is unwilling to blindly open stores and destroy her brand image. But if Bencheng can really have this population base and a stable middle-class consumer group, it is not impossible to open another store in Bencheng.

Delphina's expression moved slightly: "Zack, what is the total investment of your commercial project?"

Zhang Chen rested his head on his arms, and his six-pack abs loomed, "It should be around 600 million US dollars, and it is claimed that it will reach 1 billion." ”

Delfina was not surprised by this figure, although even in Europe, the total investment is already a large amount, but the total investment is a bubble, and it is good enough to be able to use one-twentieth of the initial start-up capital for the project.

Commercial real estate, in fact, is neither business nor real estate, but finance.

There is also a shift in the evening

(End of chapter)