In name only: I will break the chess game in Handong!
Chapter 149 The Greedy Nature of Real Estate Developers
Continental Group headquarters.
Upon arrival, Yi Xuexi was taken to the chairman's office.
Wang Dalu walked in a few minutes later.
"Xiao Jin, make some tea for Secretary Yi!"
After Wang Dalu sat down, he began to give instructions to his secretary. It has to be said that rich people know how to enjoy life. His secretary, Xiao Jin, was really beautiful, with skin that was incomparable to that of older women. Her eyes were bright and gentle, and she was very well-behaved.
"Secretary Yi, please have some tea!"
Xiao Jin first poured tea for Yi Xuexi, and then poured tea for his own boss.
"Xiao Jin, there's nothing more for you here. You can go now."
"Yes, Chairman!"
Only after Xiao Jin left did Yi Xuexi choose to speak.
"Mainland China, it's been a while since we last met."
Wang Dalu nodded and said, "It's been a while since we last met. Secretary Yi's career has been booming these past few months! He's jumped directly from the level of a division chief to the level of a department director. That's a miracle in Handong!"
Yi Xuexi always felt that something was off about what he was saying, even though the person was just stating a fact.
"By the way, I'm here to discuss a project with you—urban redevelopment and construction. I'm wondering if you'd be interested."
"Yes, yes, yes! Secretary Yi, I've got it all figured out!"
Wang Dalu was still excited at this point.
"Here's the thing, there are some old residential areas in Guangming District that need renovation, including road widening, pipeline replacement, and so on. Originally, our district committee and government planned to carry out the renovation in a government-led manner, but the district's financial funds have all been invested in the Guangming Peak project, so the funds are limited and we can only cooperate with enterprises."
"Great idea to collaborate!"
Wang Dalu continued, "Secretary Yi, our Dalu Group is willing to undertake the renovation and construction of this project."
Fortunately, our group also has the capability!
I just don't know... how much the government will pay upfront, at least 30%, right?
? ? ? ? ? ?
"You still want money?" Yi Xuexi's smile froze instantly.
"Mainland, you might not understand, but our district's finances are completely empty right now."
Upon hearing this, Wang Dalu frowned, but still offered a second option.
"In that case, our group will do the pipeline replacement and road widening for free, but can the government offer some discounts for the community renovation?"
For example, in communities where the land is still under the government's name, we will not charge our group the land price, but we will compensate residents of the demolished communities with houses of the same size.
During this period, the government may need to cover the residents' rental costs, and the government also provides some tax incentives when renovated and rebuilt communities are sold.
Secretary Yi, what do you think?
By the way, we need the apartment building to be at least thirty stories high. Will that be approved?
"Mainland China, are you still trying to make money off ordinary people?"
Yi Xuexi frowned and continued, "You haven't forgotten the oath you once made to serve the people for life, have you?"
"Can't the Continental Group just treat this as charity? The people will definitely thank you after the renovations."
Wang Dalu's mood immediately soured.
The offer he made was already very favorable. The Continental Group only makes a small profit from selling houses after the community renovation, but Yi Xuexi is unwilling to accept this and wants the Continental Group to work for free.
"Easy to learn! You're thinking of getting something for nothing, but I think you're mistaken!"
This is a business; we do projects to make money. If we don't make money, how am I supposed to pay my workers' wages?
"you!"
Yi Xuexi pointed at Wang Dalu with obvious disappointment.
Wang Dalu also didn't want to continue talking to Yi Xuexi, who was like a parasite.
"Xiao Jin, see the guests out!"
Wang Dalu isn't afraid of Yi Xuexi; if all else fails, he can just cry to Li Dakang.
It can only be said that Yi Xuexi is an idealist.
After all, compared to the real estate developers in Luzhou, Wang Dalu is a model of kindness.
These days, Chen Luo is also annoyed by these real estate developers. They have won the bid for the land, but they only have a three-year construction period.
These real estate developers started selling houses as soon as the design drawings came out, which was fine, as long as the houses could be completed and delivered in the end, Chen Luo didn't care.
But these real estate developers just raised prices dramatically.
The real estate market in Luzhou was directly and severely stimulated, with all houses, including second-hand houses, experiencing rapid price increases.
The wages of ordinary people cannot be raised in the short term. This is not a problem for other cities, but it will only make life harder for ordinary people.
But Chen Luo didn't want the common people to suffer.
Therefore, Chen Luo has not approved the school district housing system proposed by real estate developers to the Luzhou municipal government in the past few days. Once approved, housing prices will only rise even more dramatically.
In reality, neither the exam-based school admission system nor the school district system can ensure fair and just access to education for children from poor families. The former is based on grades, but wealthy families can easily afford tutoring. The latter is even simpler: just buy a house and you can get into a good school.
Education can only achieve relative fairness.
It seems there is only one way to solve this problem: to balance educational resources.
At the same time, the government's involvement in real estate development and sales, using affordable housing to boost housing prices, puts a tight rein on real estate developers and prevents them from raising prices arbitrarily.
In the short term, the rapid rise in housing prices will make Luzhou's GDP look very good. However, in the long run, once the supply exceeds the demand, the real estate bubble will burst. Using real estate as the engine of economic growth obviously has great hidden dangers.
Against this backdrop, the Luzhou City Industrial Development Conference was held.
Chen Luo attended and chaired the meeting.
The auditorium, which can hold over a thousand people, included real estate developers, representatives from various sectors, and a group of officials from Luzhou.
When Chen Luo stepped onto the platform, the entire audience erupted in thunderous applause.
"Everyone, please be quiet."
The room fell silent after the microphone rang.
"Thank you all for taking time out of your busy schedules to attend this Luzhou Development Conference. There is actually only one theme for this conference."
Luzhou's economic engine is positioned as high-end manufacturing!
The industrial park will be able to attract industries in a few months. During this gap, I noticed an interesting phenomenon: housing prices in our Luzhou have risen by 50%, and the rise is accelerating.
I want to remind you of something here!
Houses are for living in, not for speculation!
School district housing will not take root in Luzhou; Luzhou will increase its investment in education resources.
Except for a few key high schools, all other schools will be guaranteed the most basic financial support and construction.
Narrowing the gap in educational resources between urban and rural areas will allow educational equity to benefit all the people of Luzhou.
At the same time, the government will take the lead in constructing a number of affordable housing units, which will be sold to all residents with Luzhou household registration through a lottery system.
As soon as he finished speaking, the real estate developers backstage all looked grim. This was tantamount to having their Achilles' heel gripped, preventing them from expanding their capital recklessly.
However, the balance was just right; they didn't oppose their price increases, nor did they prevent them from making no profit.
It's simply a matter of government regulation compressing their profits to a reasonable range.
Even if they were dissatisfied with these real estate developers, they could only grit their teeth and accept it, at least they wouldn't lose money and could still make a profit.
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