CNBC:
Some recent data on real estate investment showed a decline in August and September. What impact has the recent real estate situation had on economic growth? How has it affected consumption? Thank you.
Fu Linghui:
Thank you for your questions. People also pay close attention to issues in real estate. The real estate industry is not only an important part of the national economy, but is also closely related to the lives of residents. In recent years, in accordance with the requirements of the central government, all regions and departments have adhered to the principle of "no speculation in housing," continued to stabilize land prices, house prices and expectations, effectively prevented and resolved potential risks, and promoted the steady and healthy development of the real estate market.
Since this year, by improving the long-term mechanism of the real estate market, curbing unreasonable demand, promoting the stable release of rigid demand, and restricting some real estate enterprises from blindly expanding by borrowing, the real estate market has generally stabilized, and real estate investment, sales and house prices have gradually stabilized. In the first three quarters of this year, the sales area of commercial housing increased by 11.3% year on year, with a two-year average growth rate 4.6%, down 1.3 percentage points than that for January to August. Investment in real estate development rose 8.8% year on year, with a two-year average growth of 7.2%, 0.5 percentage point lower than in the January-August period. In July and August, the growth rates of housing prices in 70 big and medium-sized enterprises were generally declining.
In the next stage, the real estate market is expected to maintain steady development with the continuous improvement of the housing system for both purchases and rentals and as market entities become more rational.
As for the impact of real estate on economic growth, in the first three quarters of this year, the two-year average growth rate of the added value of real estate was 4.8%, which was 1.3 percentage points lower than that of the first half of this year. On the whole, the impact has been limited. Thank you.
