In 1994, the times required Chinese companies to pay attenti
In July 1994, the State Council promulgated the "People's Republic of China Urban Real Estate Management Law", which provided the formal legal basis for the real estate industry for the first time.
But for Chinese real estate companies, 1994 is still a very difficult year.
On June 23 of the previous year, the State Council terminated the listing of real estate companies, fully controlled the bank funds into the real estate industry, and introduced 16 strong control measures for the real estate industry, including strict control of credit scale and reduction of infrastructure investment. .
The real estate bubble in Hainan and Beihai was broken.
Feng Lun once described this huge bubble that started in the early 1990s:
"At that time, the real estate speculation was almost fanatical. Everyone said hello every day. They all said that they didn't pay attention to it and made money. At that time, the tip was given 200,000 yuan at a time. At that time, the local population of Haikou was less than 300,000, and the entire Hainan Island was 6 million people, 20%. In the city. The rest are in the country. But this is the population base, and the real estate company in Hainan has reached 18,000.”1
That is to say, on the Hainan Island at that time, an average of 80 people owned a real estate company. These companies are playing an old game of "drums and flowers" enthusiastically, and everyone wants to pass the "flowers" (land and house) to the next receiver before the end of the game.
The data is enough to explain everything:
In 1988, the average price of commercial housing in Hainan was 1,350 yuan / square meter, and in 1991 it was 1,400 yuan / square meter. In 1992, it rose to 5,000 yuan / square meter, and in 1993 reached a peak of 7,500 yuan / square meter. In just three years, house prices have grown more than fourfold. In 1992, 40% of Hainan’s fiscal revenue came from the real estate industry. 2
In 1994, the times required Chinese companies to pay attention to business reputation.
Realize that there are not many people at risk. I bought five pounds of oranges and one cigarette, and Pan Shiyi, who went to Haikou City Planning Bureau to check the information, was an exception. He accidentally turned to a set of numbers: Haikou's per capita housing construction area has reached more than 50 square meters, while Beijing in the same period, the per capita housing area is only 7 square meters. Intuition told him that the real estate market in Hainan is going to have an accident.
In 1993, the real estate bubble in Hainan and Beihai burst, and the impact was not limited to Hainan and Beihai. It also hit the entire Chinese real estate industry.
The industry later recalled:
"In 1993, macroeconomic regulation and control, 1994-1997 was the most difficult day for the real estate industry in the country. The profit of the whole industry was negative. The annual development area is diminishing, the house is difficult to sell, and the days are very sad."3
1994 was also a tough year for urban residents who wanted to buy a new home and wanted to trade in and change from small to large.