The National Housing and Urban-Rural Development Work Conference held at the end of last year made specific arrangements for building a new model for real estate development, which indicates that this work has entered the implementation stage and is of great and far-reaching significance for promoting high-quality real estate development.

The connotation of the new model for real estate development has undergone a process of evolution. The issue of the "new model" was first proposed at the 2021 Central Economic Work Conference; the new development model was mentioned again at the 2022 Central Economic Work Conference; and when it was mentioned for the third time at the 2023 Central Economic Work Conference, the requirement was to "improve relevant foundational systems and accelerate the building of a new model for real estate development." The new model is positioned as a new model of "real estate development," highlighting the strong correlation between "improving relevant foundational systems" and building the new model, thereby enriching its connotation. Accordingly, the connotation of the new model for real estate development can be described along three dimensions: first, a new model of the housing system, whose focus is to optimize and improve the housing security system by introducing allocation-sale-type affordable housing, and to achieve the optimized reconstruction of the relationship between the housing market and housing security, and between homeownership and renting; second, a new model of the real estate management and regulation system, including improving the foundational systems related to the full life cycle of real estate by strengthening institutional development for the management of housing during its maintenance and use period, and, taking advantage of the gradual withdrawal of current administrative regulatory tools, establishing a new regulation model centered on tax instruments and supplemented by market-based instruments such as finance; third, a new development model for the real estate industry, referring to the new enterprise development model formed by real estate enterprises as they adapt to the new models of the housing system and the management and regulation system as well as to changes in the internal and external environment of the real estate market, including strategy models, business models, and product and service models.

Building a new model for real estate development is a new requirement for achieving high-quality and sustainable development in the housing and real estate fields during the process of Chinese-style modernization, and is the fundamental remedy for resolving the difficulties of real estate development and promoting the steady and healthy development of the real estate market; it is essential to adhere to both goal orientation and problem orientation. It is necessary to combine the new development philosophy and the essential requirements of Chinese-style modernization to determine the values that should be followed and the objectives that should be strived for in building the new model for real estate development, including achieving high-quality development, achieving common prosperity for all people, promoting harmonious coexistence between humanity and nature, adhering to a people-centered approach, and delivering fair benefits to all people. It is necessary to resolve the prominent problems existing in the traditional real estate development model; the new model can remedy the institutional defects of the traditional model and can effectively resolve the problems it brings, such as high land prices and high housing prices, supply-demand imbalance, and dependence on land finance. Therefore, in the process of building the new model for real estate development, it is necessary to adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old; advancing the new model must not be rushed, and efforts should be made to achieve a smooth transition between the old and new models. The National Housing and Urban-Rural Development Work Conference that concluded recently made specific arrangements for building the new model for real estate development, and this work has now entered the implementation stage.

First, "establishing a new mechanism for the linkage of the factors of 'people, housing, land, and money'" falls within the scope of improving the housing system and the market regulation model, and is mainly intended to resolve the imbalances caused by the misallocation of these four factors in the past, such as imbalances in supply and demand, in the housing price-to-income ratio, and in the housing price-to-rent ratio. As for the "linkage of the factors of people, housing, land, and money," although this is common sense in a market economy, it is by no means easy to achieve the linkage and equilibrium of the four factors due to competition among cities and regions, constraints on resources such as land, and even departmental interests; therefore, establishing a new mechanism for the linkage of the factors of "people, housing, land, and money" is a key link in building the new model for real estate development. In addition, "people, housing, land, and money" are all multi-dimensional variables—people with various economic and social attributes, housing with different functions and uses, land with different locations and ownership attributes, and money involving investment, finance, and fiscal and tax matters—which further intensifies the complexity of linkage and equilibrium. Scientific and forward-looking "housing development plans" at all levels that can build consensus are an important vehicle for the new mechanism of "linkage of the factors of people, housing, land, and money."

Second, "improving the foundational systems for the full life cycle of housing from development and construction to maintenance and use" falls within the scope of improving the new model of industry and market management, and is intended to take residential or non-residential real estate projects as the object and, in light of the pain points, difficulties, and bottlenecks existing in the operation and development of the real estate market as well as the new requirements for high-quality and sustainable real estate development in the future, to "reform the development mode, financing mode, and sales mode, and establish systems such as housing inspection, housing pension, and housing insurance." The current management system, which is mainly oriented toward the development and management of newly built commercial housing, will be extended to full life cycle management of housing, ensuring that housing in use remains in a good state that is safe and healthy, smart and convenient, and suitable for the elderly and livable.

Third, "implementing the construction of the 'three major projects' well and accelerating the resolution of the housing problems of new urban residents, young people, and migrant workers" falls within the scope of improving the housing system, and is intended to optimize and improve the existing housing security system and form a new model of housing security development in conjunction with the construction of the "three major projects," especially the supply of allocation-sale-type affordable housing. The "three major projects" are an important lever for implementing the new model for real estate development and also a long-term mechanism and important entry point for stabilizing the real estate market. Among them, planning and building affordable housing is a major reform to improve the housing system and supply system and to reconstruct the relationship between the market and housing security; the focus of this reform is to expand a new path of allocation-sale-type affordable housing and establish a housing system that promotes both renting and purchasing. Urban village renovation is a major livelihood project to resolve the urgent difficulties and worries of the people, with the focus on eliminating safety risks and hidden dangers, improving the living environment, and promoting industrial transformation and upgrading. The construction of "dual-use for normal and emergency purposes" public infrastructure is a major measure to coordinate development and security and enhance urban resilience, ensuring that it is usable in normal times and available in emergencies.

Fourth, "making efforts to build good housing and creating a new track in the housing sector" is a requirement put forward from the perspectives of institutional goals and industry development. Good housing is a systematic project involving multi-dimensional indicators such as structural safety and durability, flexible and efficient functions, healthy and comfortable interiors, intelligent and convenient facilities, ecological and environmentally friendly surroundings, and inclusive and livable communities. In addition to encouraging enterprises to create new tracks and new models, building good housing also requires strengthening source governance through improving systems. For example, land auction methods such as "capping housing prices and bidding on land prices" generally pursue the maximization of short-term government revenue, excessively compressing construction costs and development profit margins, and some real estate enterprises respond by sacrificing quality, causing "bidding on quality" or "bidding on high-standard construction plans" to become mere formalities.