The brief rebound in the Zhongxiu real estate market

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There is a typo

Just asking, didn’t these plots of land exist before as well? Why didn’t such a situation occur before, but only now? Is it because these plots of land were not allowed to be auctioned before?

No, these core area lands, as high-quality assets, were not arbitrarily auctioned off by the government of Zhongxiu before. Now they are unsold, and the real estate groups willing to take them are because they believe in the market principles of capitalism. They believe they can use imperialist methods to resolve current class contradictions, and after the “capitalist economic crisis passes,” they can leverage this high-quality land to obtain higher profits.

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I see

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Just like during an economic crisis, many bourgeoisie prefer to seize land plots, real estate (large apartments), and storefronts with extremely advantageous locations.

If we only talk about the rise in land prices, on one hand it is because some high-priced plots of land are not randomly auctioned by the government. On the other hand, land rent is not fixed; as the population in large cities continues to gather and the demand for housing increases, monopoly land rent also rises. At the same time, the government has been actively developing urban infrastructure, building subways, roads, and large-scale urban commercial complexes, which changes the original significance of these non-core plots of land, further increasing their land rent. Additionally, land prices are determined by land rent and bank interest rates; recently, bank interest rates have been lowered, which also drives up land prices.

Moreover, during economic crises, many small and medium asset owners go bankrupt and the people suffer, while the monopoly bourgeoisie can leverage the state machinery to acquire these small and medium capital through various government funds, expanding monopoly. This also intensifies competition; these large, wealthy monopolistic groups continually raise bids to compete for good land plots, causing the premium in land auction markets to skyrocket.

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Does this phenomenon belong to Keynesianism? :thinking:

This year should be a period of qualitative change. Just wait.