I. Policy control
In the past year, real estate control policies continued to increase, and many cities introduced policies such as restricting purchases and adjusting housing provident fund policies. At the same time, the central bank also began to tighten the supply of funds and raise the loan interest rate to curb the rise in housing prices. These policies and measures make the liquidity of the real estate market worse and the cost of buying a house increase. For property buyers, the threshold and risk of investing in real estate are rising.
Second, the imbalance between market supply and demand.
The relationship between supply and demand in the real estate market has always been an important factor affecting housing prices and real estate investment. At present, the supply of real estate market in many cities in China is relatively large, but the demand of buyers has dropped significantly. On the one hand, due to the economic downturn and unstable employment situation, some property buyers are cautious about the future economic prospects, and the demand for real estate investment has declined. On the other hand, the increase in the threshold for buying houses, such as loan restrictions and the increase in the down payment ratio, has also made buyers more cautious and the demand in the real estate market has declined.
Third, the impact of the epidemic.
The outbreak of COVID-19 epidemic has also had an impact on the real estate market. Due to the epidemic, the global economic situation is uncertain, and China's economic growth has been hit. In this case, some property buyers may need to pay more attention to family livelihood and financial situation, and suspend or postpone real estate investment plans. In addition, the epidemic has also increased buyers' worries about the uncertainty in the future, further curbing the demand in the real estate market.
To sum up, there are many reasons for the current decline in housing investment, including policy regulation, imbalance between supply and demand in the market, and the impact of the epidemic. In the future, with the increasing regulation of the real estate market, the liquidity of the real estate market will continue to tighten, which will bring new challenges to the recovery of the residential investment market.