The "City Management" Concept Aggressively Promoted by Certain Local Governments in Recent Years Is the True Mastermind Behind Today's Real Estate Quagmire

In recent years, the concept of "managing the city as a business" has been aggressively promoted. Local governments and real estate developers formed cozy little interest circles, jointly directing a spectacular real estate frenzy. Anyone with half a brain knows that the "city management" concept aggressively promoted by certain local governments is the true mastermind behind today's real estate quagmire.

The real estate industry is probably the one with the most taboos and barriers of any industry. From this, it's not hard to understand why so many senior executives at real estate companies nationwide come from government, land administration, and urban planning departments. It can be said that not a single real estate developer in the entire country lacks deep and intricate connections with local government, land, and planning departments. These connections form an under-the-table community of interests. As for above-board interests, the "city management" concept also provided local governments with a perfectly respectable excuse to aggressively involve themselves in the distribution of real estate profits.

The so-called "city management" concept, to put it bluntly, is the foundation upon which an interest group scratches each other's backs. To put it harshly, it was precisely because a platform was needed to distribute profits that the "city management" concept was created as a front. Some might say that now all land must be listed publicly, so this kind of collusion will decrease. Anyone who thinks this is extremely ignorant about the industry. It's like gambling — there are ten thousand different games, but only one purpose. Games are played by people, and wherever there are people, there are unwritten rules. The key is whether you're an insider.

The only way to resolve the current real estate quagmire is to have local governments at all levels completely abandon the "city management" concept, thereby minimizing the possibility and impulse for government involvement in real estate interest circles. Then plug the loopholes between primary development and public listing, strictly enforce the entire auction process, and implement a dual-track system for real estate supply. Only then can the problem be solved at its source.