Chapter 2177 No way to go
As soon as Ma Cunzhuang finished speaking, Xie Xiansheng's eyes turned to Mu Guoxing. This was a new situation. Xie Xiansheng had never heard Mu Guoxing's statement on this aspect, nor did he understand what the provincial party secretary was thinking. He now also wanted to know what the provincial party secretary wanted to do in the future.
Mu Guoxing smiled and shook his head: "It is unnecessary to spend another sum of money. Considering that your company has suffered huge losses in this sudden financial crisis, the provincial party committee also needs to provide you with some help within its ability. After all, the central government still vigorously advocates the development of the private economy, love business, protect business, and benefit business are an important principle that we must adhere to in our investment promotion work.
Not only Ma Cunzhuang, but also Xie Xiansheng and everyone here were confused. They just took back their land, so they had to give it to them for free? If that were the case, why bother so much at the beginning? Isn’t it enough not to take it back directly!
Mu Guoxing signaled everyone to drink tea together, put down the teacup and said with a smile: "The provincial party committee and government are preparing to issue a document. After the land is collected free of charge, the government is not ready to be listed for sale. Land selling finance is not advisable, and that is a stupid way to kill chickens and get eggs. We are planning to use these land to invest in shares and cooperate with all interested real estate companies. In each land opening, we must ensure that a certain number of affordable housing is established. The provincial government will obtain ownership of these properties according to the proportion of the investment and sell it to people who really need housing at a cost price."
Xie Xiansheng looked at Mu Guoxing with a nearly admirational look. He believed that Secretary Mu is worthy of being a doctor of economics and has a set of things in economic development. Now the land in the hands of business owners is very promising and has the best geographical location. The province takes out these lands to invest in it, on the one hand, it can reduce the expenses of real estate developers when auctioning land, and on the other hand, it can also sell a large number of affordable housing to people who really need housing through strict systems.
In this way, there will be several great benefits. First, Mu Guoxing further bought people's hearts. The price of affordable housing generally only accounts for 60% of the price of commercial housing. The working class should also be able to afford it. How can the masses not support him sincerely? Another advantage is that Mu Guoxing sold these housing at the cost price and could recover huge amounts of funds. This is actually selling the land again. Then he used this money to support the real economy. I believe that it will take no long before the economy in Jiangnan's economy will inevitably embark on a healthy and fast development path.
Another biggest advantage is that Mu Guoxing can use these affordable housing to further stabilize housing prices in Jiangnan Province. The people see that the government is building affordable housing for them. Who would spend a high price to buy commercial housing for those who really need housing? The price of goods is determined by the supply and demand relationship. In this case, the developers will take the initiative to reduce prices. At the same time, banks will strengthen their credit management and eliminate the entry of housing speculation groups. The housing prices in Jiangnan Province will soon fall back to a normal level.
Ma Cunzhuang felt dizzy, as if a soap bubble flashed in front of his eyes, and hope disappeared so quickly. He was calculating his pros and cons with his businessman's eyes. At this time, he felt that Mu Guoxing, the secretary of the provincial party committee, was different from other officials. He was not a bureaucrat who only knew how to talk big, but also a businessman with a very smart mind and very skilled abacus.
Ma Cunzhuang could also estimate that according to Mu Guoxing's idea, the next step for the provincial government is to require developers to build affordable housing for them for free. Imagine that the opening of a community requires 1 billion yuan of funds. If 300 million yuan of land is used to invest in the shares, the provincial government will inevitably obtain no less than 300 million yuan of real estate. As for how to price it, it is the government's business. In this way, these real estate developers will take the initiative to reduce prices.
This provincial party secretary is simply amazing. This method is not just killing two birds with one stone, but also killing one stone. In this way, it is absolutely impossible for real estate developers to have huge profit-making returns like before.
Mu Guoxing looked at Ma Cunzhuang with interest. He wanted to leave Ma Cunzhuang an opportunity to think. Since he decided to treat Southern Real Estate as a pilot for the rectification of the real estate market, Ma Cunzhuang's attitude is also crucial.
After a few minutes, Ma Cunzhuang raised his head and said, "Secretary Mu, your method is good. If we want to continue to survive, it seems that we must follow your method."
Mu Guoxing smiled and said, "Chairman Ma, the development of Jiangnan real estate has been in a disorderly state for a long time, and it can even be said to be an anarchic state. You know more than us how high the profits of real estate are. Do you think this is a normal situation? The prices of the buildings you built are inflated, and the people can't afford them at all. Most of them are bought by the real estate speculation group. After the Jingrong Storm came, these people could no longer get loans from the bank, and the capital chain was broken.
If the factory does not produce a large number of workers, how can they have money to buy houses? This is a vicious circle. If you want to break this circle, you must start by regulating the real estate market. Of course, we should still guarantee reasonable profits. In this regard, the provincial party committee and the provincial government will still provide you with several preferential policies."
Ma Cunzhuang knew that Mu Guoxing was telling the truth. Before the financial crisis, Southern Real Estate's profit in a single project had reached 40%, which obviously did not conform to economic laws. However, this cannot be blamed on them. Merchants are all profit-seeking, so who doesn't want to make more money and make money come faster?
"Secretary Mu, how much do you think the profits of our real estate should be controlled at is a more reasonable level?"
Mu Guoxing smiled: "This is a new problem. According to international practice, the profits of real estate should be between 5% and 8%. Considering the actual situation of our country, I think it should be controlled within 10%. We are also the first to try it out. If you succeed in Jiangnan, it will be a great promotion to the national real estate market. Your Southern Real Estate has made great contributions, and your Chairman Ma's name will also be heard all over the country. The Jiangnan Provincial Party Committee will also mention this in its report to the Central Committee, and the provincial government will also commend you Southern Real Estate."
Mu Guoxing drew a bright future for Ma Cunzhuang, and Ma Cunzhuang was also very clear that he had no second way to go if he didn't do this. Now the real estate markets in various provinces have so-called spheres of influence. If Southern Real Estate wants to leave Jiangnan and move to other provinces, due to one or another, they will not be tenable at all. If Southern Real Estate wants to continue to survive, in addition to transformation, it will do it according to Mu Guoxing's method.
Ma Cunzhuang looked at Mu Guoxing carefully and thought to himself that the provincial party secretary was simply terrible. He had considered all the ways and had only one way to go. Not only that, he also painted a very good prospect for them. At this time, Ma Cunzhuang absolutely believed that as long as the Jiangnan Provincial Party Committee gained experience in rectifying the real estate work, other provinces would definitely do it. Since there is no other way now, what can we do if we don’t follow the path that Mu Guoxing has set.
"Secretary Mu, I can't decide on such a big thing alone. I want to go back and hold a board meeting to study it and then give you a reply?"
Mu Guoxing smiled and nodded, politely sent Ma Cunzhuang away, and when he returned to the office, Xie Xiansheng followed him in: "Secretary Mu, do you think they can follow the route you set?"
Mu Guoxing laughed: "Comrade Xiansheng, since ancient times, there is an endless road in Huashan Mountain, with infinite scenery on the top. If you want to go up, do they have any other roads to go besides? Haha..."
Chapter completed!