Real estate bubble economy is broken, furniture companies will face reshuffle

 

According to the analysis of the "First Financial Daily" recently, the monthly rent ratio of house prices in China has reached a maximum of 800 times, and the real estate bubble will burst in 2015.

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In the last month or two, China's property prices have risen sharply compared to 2012. Among them, Beijing house prices rose 19.3% year-on-year, ranking first in the country, followed by house prices in Guangzhou and Shanghai, which rose by 19.0% and 18.5% respectively. The American "Atlantic" magazine wrote: Seven of the world's ten most expensive and unbearable real estate markets are Chinese cities-Beijing, Shanghai, Shenzhen, Hong Kong, Tianjin, Guangzhou and Chongqing. According to the two most commonly used standards, the housing bubble in China is extremely serious: the price-to-income ratio in first-tier cities is generally more than 25 times, and the ratio of the price of the property to the monthly rent has generally reached 500 to 600 times, and even appeared. More than 800 times.

In the rise in property prices in the past year, we can once again clearly see the push of local governments-reducing land supply and pushing larger plots to stimulate the birth of high land prices. In this game, land finance clearly became the biggest winner. In the first six months of 2013, a total of 15,493 land transactions were conducted in 306 cities across the country, and land transfer fees reached 1.13 trillion yuan, a substantial increase of 60% year-on-year. This land finance has caused such a big bubble in China's real estate. This kind of bubble is caused by the local government, so it is a hard bubble, that is, a bubble that is not easy to be broken. Therefore, the prediction of the new Conobel Prize for Economics Chairman Le is also inaccurate. But this bubble will eventually be broken, and the central government may decide to ask local governments to reform their existing land finances and replace land finances with real estate taxes.

After the real estate bubble economy is broken, it is not necessarily a good thing for the furniture industry. Because by 2015, China will usher in the last population of "birth peak sequelae" and "first death peak", the number of property purchases will not increase too much. After more than ten years of rapid development in the furniture industry, furniture companies will face a comprehensive reshuffle and the overall industrial structure of the furniture industry will be adjusted.

Facing the reshuffle of the furniture brand industry, furniture companies should focus on creating their own furniture brand . Furniture companies must concentrate resources and keep their advantages tightly. Furniture should implement a short and sophisticated strategy to refine and highlight the advantages of the brand and create a distinctive brand. Furniture companies must cater to the needs of consumers. On the other hand, they must not only cater to the needs of consumers, but to vigorously develop their own advantages and build them into an important element that ultimately attracts consumers, so that the brand will eventually gain respect. And recognition. (Editor: Peter)

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