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War for Talent, One of the Drivers Behind the Rise in Housing Price

Post time: 2018-05-24 22:00:12    Source: Translated from news.fang.com


In recent days, Tianjin's "Haihe Talent" action plan has been a topic of the town. From policy easing to tightening, people were also full of hopes to hopes that were shattered into pieces.
 
China's household registration system has been criticized for long time, but so far there is still no better solution. Under such a situation that the household registration system remains unchanged, how to attract more talents has become a question that all urban rulers have to consider about it. In particular, those cities that have little changes in population, or those cities that have a net loss in population, it is sure that the governors of those cities will try their best to retain people. Only in this way can these cities have a greater potential for development. For the reason that only if there are enough people, can the power of purchase be strong, can these cities create more value.
 
Therefore, there are dozens of cities which implemented the policy of introducing talents, triggered a war for talent. Among which Xi'an, Wuhan and other hot second line cities are, and when Tianjin announced the plan to start the "Haihe Talent" action, the battle of robbing people has a sign of white hot.
 
However, the war for talent had also caused certain negative effects, especially for the real estate market. Under the situation that the overall housing price is rising, the implementation of the city's talent introduction policy created an demand eruption of buying a house in a short period of time, and in which there is a crowd which has the purpose of speculation in real estate, and this may further increase house prices.
 
For example, in March last year, Xi'an released a more liberal talent introduction policy, and opened up restrictions on graduates of ordinary secondary and technical secondary schools. Many of these new residents who were successfully for their household registration were eligible for the purchase, and Xi'an's housing prices began to rise in a straight line.
 
In fact, not only Xi'an, but also the cities that have recently participated in the war for talents, have the pressure of rising house prices. Because the newly introduced people are mainly young people, most of whom haven’t owned property yet, they are potential house buyers. Moreover, some cities open their household registration restrictions, not only to attract talents, but also to attract buyers. When the buyers are attracted, the sales volume of the real estate market will increase in a short term, which will further make the supply and demand relationship of the property market even more intense.
 
People from real estate industry pointed out that the talent policy should not be linked to real estate restrictions. For real talents, we should provide a direct source of housing, the way that just simply puts talents on the market will also bring instability in the real estate market.
 
In fact, the war for talents is more reflective of the anxiety of urban development. Just like what we often say god is always on the side of the strongest battalions, the development of the cities has similar laws. Taking the 4 first tier cities of Beijing, Shanghai, Guangzhou and Shenzhen as an example, if there is no restriction, there will be more people now. The more concentrated the resources of the cities are, the more pooled the population will be, and the more opportunities and creativities they will have. In recent years, the economic downturn of the 3 eastern provinces is also related to the large population loss.
 
But, the retention of people is not just to move residence, sell a few sets of house, but to do a good job in urban infrastructure, create more employment opportunities and a better welfare, allow new residents to see a better future in the city and have a better future Life.

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