Chapter 3 Chapter 1 The Source of Rivers and Lakes (1980～1983)

The reason why we regard 1980 as the first year of the real estate industry is because the two wheels of the development of the real estate industry - "land reform" and "housing reform" both turned simultaneously in this year, but the rotation of the two wheels The methods are different: "housing reform" is top-down, while "land reform" is bottom-up.Real estate expert Gu Yunchang said the same thing, "Land reform and housing reform are the two engines of China's real estate market, driving the entire real estate market to take off." April 2, 1980 is the birthday of contemporary Chinese real estate.On this day, Deng Xiaoping boarded a high-rise building in Qianmen, Beijing, overlooking the surrounding gray low-rise and old houses, and talked about the construction industry and housing issues:

Regarding the construction industry, Deng Xiaoping said: "From the perspective of most capitalist countries, the construction industry is one of the three pillars of the national economy. Problem. The built houses certainly serve the people’s lives. But this kind of production and consumption materials sector is also an important industrial sector for developing production and increasing income. To change a concept, it is that the construction industry loses money. You should look at It is understood that the construction industry can make money, and it is an important industrial sector that can increase the country's income and accumulation. Otherwise, it cannot explain why capitalist countries regard it as one of the three pillars of the economy. Therefore, in the long-term planning Among them, the construction industry must be placed in an important position. In connection with this, the development of the construction industry can solve the employment problem of a large number of people, build more houses, and better meet the needs of urban and rural people. The development of the construction industry, It also drives the development of the building materials industry.”

Regarding the housing issue, Deng Xiaoping said: “We must consider a series of policies for urban construction and distribution of houses. Individual urban residents can buy houses or build them themselves; new houses can be sold, and old houses can also be sold; Pay in installments and pay off in 10 or 15 years. After the house is sold, the rent may have to be adjusted. It is necessary to adjust the rent in relation to the housing price to make people consider buying a house more cost-effective. Therefore, it is necessary to gradually increase the rent. If the rent is too low, people will not buy a house .Rents for houses in prosperous city centers and remote areas, houses in convenient and inconvenient areas, and houses in urban and suburban areas should be different. In the future, rents will be raised, and subsidies should be given to low-wage workers. These policies should Think about it in conjunction. Building houses can also encourage public-private partnerships or private construction and public assistance, or private individuals can find their own way. Rural houses must have new designs, not always small courtyards, but development of buildings. Changing bungalows into buildings can save arable land. Building What kind of buildings should suit the needs of different regions and different residents."

This historically important speech, which was later titled Deng Xiaoping's "Talks on the Construction Industry and Housing Issues", directly promoted the wheel of "housing reform" and gave birth to the real estate market in contemporary China.Regarding the housing issue, Deng Xiaoping clarified the following points: "House can be sold" because it is a commodity, and before that, housing has always been distributed as a welfare, and the only way for Chinese people to solve the housing problem is to distribute housing among different units; People in the city can buy houses or build them themselves; new houses and existing public houses can be sold and paid in installments; the rent of public houses distributed as welfare should be raised to “force” people to buy houses, and rent subsidies should be given to employees .

The commercialization of housing, the sale of public housing, and rent-raising subsidies cover the core content of China's housing reform in the next 30 years.The great man draws a circle, and we keep going in the circle.In the past 20 years, we have made four rounds: in the early 1980s, the first round of housing reform focused on new housing and the sale of existing public housing; in the late 1980s, the second round of housing reform started from Yantai Housing Reform Focusing on rent-raising subsidies to encourage people to buy houses; the third round of housing reform was marked by the establishment of the housing provident fund system in 1994; in 1998, the fourth round of housing reform completely terminated the physical distribution of housing, and the housing mortgage loan system was established. A gorgeous turn from welfare to commodity.

On June 22, 1980, the Central Committee of the Communist Party of China and the State Council approved and forwarded the "Outline of the National Capital Construction Work Conference Report" issued by the Party Group of the State Construction Commission, and the main content of Deng Xiaoping's speech was distributed to the whole country in the form of a central document. The wheel of "housing reform" is turning, and the wheel of "land reform" is also turning.One person cannot but be mentioned here——Luo Jinxing, whose status in the world can be described as "the patriarch", and today's real estate developers are all his descendants.

In 1979, Luo Jinxing came to Shenzhen and served as the deputy director of the Real Estate Administration Bureau.The leader gave him a task: to build 20,000 square meters and more than 300 sets of dormitories for cadres within one year.At that time, Shenzhen's local fiscal revenue was only about 30 million a year, which was stretched.To complete the construction task of 20,000 square meters, at least 2 million funds are needed, but the finance can only allocate 500,000 to Luo Jinxing.In order to complete the tasks assigned by his superiors, he had to find ways to find money. Once, Luo Jinxing complained in front of a Hong Kong friend. The Hong Kong friend told him: "You, the director, are begging for a golden rice bowl. Why don't you turn the land into gold like Hong Kong?" Luo Jinxing was shocked when he heard this. : "This is illegal. The Constitution clearly stipulates that land cannot be occupied, rented out, or traded."

But the grim reality forced him to think and try this "unconstitutional" approach.One day, Luo Jinxing accompanied the leaders to inspect the housing conditions of the residents. They saw that some couples were married and their children were about to go to school, but they still had no house. Three generations lived in a small house. Ditch - "Shenzhen Longxugou".At that time, Luo Jinxing thought: If Shenzhen is like Hong Kong, it can turn land into money. With so much land, it will not be a flood of money. How many houses can it be used to build? The superior leader told him that he could walk on the fringe of the policy and play the "edge ball". This is also an excusable approach under the background of that special era, and it also requires courage and courage.Luo Jinxing came up with a flexible method - "compensation trade", that is, the government provides the land, Hong Kong businessmen pay for it, cooperate to build houses, and share the profits.

After all, leasing land is against the constitution. In order to find a protective umbrella for himself, Luo Jinxing turned to the "father of Marxism-Leninism" Lenin for help.He found in the "Residential Questions" section of "Selected Works of Lenin" that Lenin quoted Engels as saying: residential buildings, factories, etc., at least during the transitional period, may not necessarily be handed over to individuals or cooperatives for free.Likewise, the abolition of private property in land does not require the abolition of ground rent, but the transfer of ground rent—albeit in a modified form—to society.

This "trick" played by Luo Jinxing was approved by the superiors, who added: Marx and Engels also said in the "Communist Manifesto" that "deprivation of real estate and use of land rent for state expenditures", you should try it first! After the news of the cooperation with Hong Kong businessmen spread, a Hong Kong businessman named Liu Tianjiu first came to Shenzhen to invest.Luo Jinxing negotiated with him, and the two hit it off.Luo Jinxing drafted a two-page "compensation trade" agreement, Shenzhen organized the construction, and Liu Tian sold the house in Hong Kong.

Profit sharing was originally mentioned as "30% to 70%", but Luo Jinxing learned that as long as there is land in Hong Kong, the bank will provide loans, which means that as long as the land price is paid off, the construction cost will be borne by the bank. Qicheng.He tentatively said to Liu Tian: "Three sevens can't be done, if you want to do it, it's 85:15, we get 85%, you get 15%." Unexpectedly, Liu Tian readily agreed, "OK!" On January 1, 1980, the two parties signed the contract.A week later, Luo Jinxing was ordered to set up the first real estate company in Shenzhen and the country - "Shenzhen Special Zone Real Estate Company".At this time, there were still 8 months and 18 days before the establishment of the Shenzhen Special Economic Zone. Luo Jinxing and Liu Tian jointly developed China's first commercial housing complex - Donghu Liyuan.The design drawings have just been released, and the project has not officially started. Liu Tian has already started pre-sales in Hong Kong. The average price is 2,730 yuan per square meter, which is less than half of the property price in Hong Kong.In addition, there is a 5% discount for one-time payment, and each household has 3 account quotas when purchasing a house.As a result, the house was sold out, and Shenzhen Real Estate Company earned more than 5 million yuan.The land literally turned to gold! As a pioneer in reforming the land use system, Luo Jinxing encountered resistance and risks that we can hardly imagine today.As soon as he signed the contract with Liu Tian, ​​some colleagues said to him: "You are not small! This is against the Constitution. If there is a second 'Cultural Revolution', you will not be able to escape." Some people accused He said: "The cadres and the masses in Shenzhen have no houses to live in. Instead, you, the housing management bureau chief, built a comfortable home for the capitalists." Some people publicly publicized: "Shenzhen has a shocking case of treason", and what's more, they criticized Luo Jinxing by name. .Some newspapers published an article—"The Origin of the Old Chinese Concession", which actually alluded to the "land lease" that Luo Jinxing engaged in as the "Concession". Despite such great resistance, the wheel of land use system reform is still turning faster and faster. The real estate profits of "compensation trade" can only be obtained after the house is built, and the cycle takes two to three years; and the cooperative house building, even if the house is built, can only be allocated to the house first, without cash.For Shenzhen, which is in urgent need of construction funds, "far water cannot quench near thirst". After research, Luo Jinxing and his colleagues boldly proposed to charge a land transfer fee and allow foreign investors to develop it solely.The first step of the plan is to develop 0.8 square kilometers in Luohu, take out 400,000 square meters of land, and collect land transfer fees.At that time, a far-sighted city leader proposed to change the "land transfer fee" to "land use fee", which sounds less "harsh" and can also reduce some unnecessary arguments.This is the origin of the term "land use fee" that we are familiar with today. In the Luohu area, Shenzhen Real Estate Company introduced 10 wholly foreign-owned real estate projects, leased 45,400 square meters of land, collected 220 million Hong Kong dollars in land use fees, and attracted foreign investment of 4 billion Hong Kong dollars. The 900,000-cubic-meter Luohu Mountain was razed, and the 0.8-square-kilometer land in the Luohu area increased by an average of 1.07 meters, and the lowest depression increased by 4 meters.Buildings such as Guoshang Building, Guomao Building, Development Center, and Shangri-La Hotel have sprung up one after another.Relying on the income from land use fees, Shenzhen has carried out large-scale infrastructure construction, laying a solid foundation for the rise of the special zone. In August 1980, the Standing Committee of the National People's Congress passed the "Guangdong Provincial Special Economic Zone Regulations", which affirmed Shenzhen's bottom-up land use system reform from top to bottom. Sole proprietorship, joint venture, cooperation" and other methods of developing land resources have been recognized in the form of laws and regulations. The "National Urban Planning Work Conference Minutes" issued in the same year pointed out: "For new small cities, satellite cities, existing urban new areas, and old city reconstruction areas, consideration should be given to organizing development companies and implementing comprehensive development." Real estate in various places Development companies have been established on the basis of the original "Unified Construction Office". The following year, with the support of Vice Premier Gu Mu of the State Council, Xiao Tong, director of the State Administration of Construction Engineering, and Wu Boshan, president of China Construction Bank, co-founded the first national real estate company - China Housing Construction and Development Corporation (renamed China Housing Construction and Development Corporation in 1987 Real Estate Development Corporation, renamed China Real Estate Development Corporation in 1993). In the 1980s, China Real Estate was once the leading enterprise in China's real estate industry.At that time, the highest real estate development volume in the country was 100 million square meters a year, while the annual development volume of China Real Estate Company was 20 million to 22 million square meters, accounting for more than 20%. Also in 1981, the first real estate company in the mainland was established.The first residential area to introduce property management is Donghu Liyuan jointly developed by Luo Jinxing's Shenfang Company and Hong Kong businessman Liu Tianjiu. In 1982, Deng Xiaoping's assertion that "houses can be sold" began to transform from theory to reality.Four cities, Changzhou, Zhengzhou, Shashi, and Siping, have carried out pilot housing sales. Newly built housing will be sold with subsidies in accordance with the "three-three system" plan, and the government, enterprises and individuals will each bear 1/3 of the purchase price.The price of the house is between 150 yuan/square meter and 200 yuan/square meter, and the part of the personal burden is about twice the family's annual income.In order to encourage everyone to buy houses, many preferential measures have been introduced in various places, such as one-time payment discounts and installment payments.Therefore, this pilot project has mobilized people's enthusiasm for buying houses to a certain extent, and there has been a scene of enthusiastic subscription. In fact, the same pilot project was carried out as early as 1979. At that time, the pilot cities were Xi'an, Nanning, Liuzhou, Guilin, and Wuzhou, and the price was 120 yuan/square meter to 150 yuan/square meter.However, due to factors such as low wages and public housing rents, that round of pilots did not make substantial progress.Until 1981, more than 60 cities in 23 provinces, autonomous regions, and municipalities directly under the Central Government conducted pilot projects for the sale of new houses, and only 366,000 square meters of houses were sold. However, this round of pilot projects launched in 1982 was extended to 1,604 cities and 300 counties and towns across the country by the end of 1985, with a total of 10.958 million square meters of houses sold.Although such achievements have been made, due to the reform of delegating power and transferring profits to enterprises at that time, the sale of housing subsidies caused a heavy burden to enterprises, which was opposed by enterprises, and there was a wave of cheap public housing in various places (in June 1984, the State Council Approved pilot cities to implement "subsidized sale of public housing"), housing reform pilots have been stopped or nothing. "Buying a house means owning private property. Who would dare to buy a house?" "If you live in a public house, not only the rent is low, but if the water pipe is broken, someone will repair it, and if the light bulb is broken, someone will replace it. Why buy a house?" This was a common Chinese saying in the 1980s idea. The "housing reform" is advancing with difficulty, and the "land reform" is also moving forward with twists and turns. The new "Constitution" adopted at the end of 1982 still stipulates that no organization or individual may occupy, buy, sell, lease or illegally transfer land in other forms.It was not until 1988 that the "Constitution shall not lease land" was deleted, and "the right to use land may be transferred in accordance with the provisions of the law." At the beginning of 1982, a Shanxi native named Shang Zhian came to Shenzhen to seek gold. He walked into the Shenzhen Municipal Government and said: "Give me the policy, don't need a penny to allocate funds, and I can open up an industry in the barren mountains and wild ridges." Come to the district." Several city leaders discussed, "Since the government does not need to invest money, give him a piece of land and let him toss it on his own!" It seems like a fantasy, but Shang Zhian seized the opportunity like this . The land given to him by the government is indeed barren mountains and overgrown with weeds. This place is called "Shangbu".After receiving the government's land approval, Shang Zhi'an borrowed 18 million from the bank, and the first factory building started construction soon.A few days later, a Hong Kong company approached him and paid for the factory.Shang Zhian said confusedly: "The factory building has not been built yet, how can I collect your money?" The other party explained to him: In Hong Kong, you pay for the subscription first, and then accept the house.Shang Zhian suddenly realized that he immediately began to pre-sell the factory building, and then used the advance payment received to build a new factory building. The funds expanded like a "snowball", and 18 million yuan turned into 144 million yuan in a blink of an eye. The first industrial zone in Shenzhen - Shangbu Industrial Zone was built in this way.The industrial zone includes 17 factories, 3 staff dormitories, 1 management building, a warehouse, restaurants, substations, sports fields and other facilities.This is the earliest industrial real estate in China, and it is also the starting point of real estate pre-sale.The source of the pre-sale of commercial housing that is in full swing and controversial today is here.The pre-sale of commercial housing speeds up the sales progress and capital turnover, broadens the financing channels of real estate companies, reduces financing costs, and adds wings to the development of real estate companies.In the initial stage of real estate development, its role in solving the problem of shortage of funds cannot be denied. In 1983, two laws and regulations were promulgated——"Urban Individual Housing Construction Management Measures" and "Urban Private Housing Management Regulations". "Construction of houses" gives individuals the legal right to build houses; the latter is the first law in New China to protect private ownership of urban houses. And this year, in terms of protecting private property rights in houses, a more notable event was the "rental house" that surfaced after more than 20 years.As early as 1958, the policy at that time required that private houses with an area exceeding a certain area in the hands of urban residents be leased to the state to ease the tension in urban housing.For example, in Beijing, private houses over 225 square meters have to be leased by the state, and the private houses of as many as 240,000 households have become rented houses. Many years later, some of these people became "extremely poor households" and "houseless households" with housing difficulties, and even lived on the streets.Now, they suddenly discovered that the property rights of the houses leased by the state still belong to them, so these people began to claim back their ancestral houses through various means.The rental housing issue was also linked to the overseas Chinese affairs policy and investment attraction at that time.To attract overseas investment, we must give overseas Chinese and overseas Chinese confidence and tell them that the Chinese government respects private property rights.In this way, whether the private houses of overseas Chinese who have been leased by the business can be returned has become a problem related to the overall situation of reform and opening up. The state has successively issued policies to implement the private housing of overseas Chinese, and Guangdong is at the forefront of the country.The solution to the problem of renting houses has given people a sense of security in property and encouraged people to invest in real estate, which has a profound impact on the prosperity of real estate and even the entire national economy.