Pan Shiyi and Ren Zhiqiang Don't Even Have That Much Money — Why Fixate on Them?

2006/5/22 12:57:18

Real estate has become a so-called hot topic again recently, and whenever real estate is mentioned, the likes of Pan Shiyi and Ren Zhiqiang get all the attention. How strange — Pan Shiyi and Ren Zhiqiang don't even have that much money, so why fixate on them? For example, any small-time player in futures or securities has more capital than they do. Even Martians know that acquiring a parcel of land in real estate and cornering a stock position are entirely different concepts. For the latter, having money and skills is basically enough. For the former, money and skills are useless — without connections and inside channels, it's all nonsense. But with connections and channels, even without money you can strut around like a big shot pulling off empty-handed tricks. What those connections and channels are related to — even Martian worms know!

When Pan Shiyi was doing Modern City, he nearly got wiped out. His later resurrection didn't make him much money either — things only improved a bit with Jianwai SOHO. As for Ren Zhiqiang, he's even more peculiar — frankly speaking, he's just slightly better off than a hired worker. The "down with capitalists" banner doesn't quite apply to him. Pan Shiyi and Ren Zhiqiang just happen to be based in Beijing, and Beijing being the center of gossip, they became supposed spokespeople for the wealthy. Ask yourself — are they qualified? There are plenty of people far more capable than them. The nonsense that big-mouths like Pan Shiyi and Ren Zhiqiang spout — what does it represent besides themselves?

A market economy is a profit-driven economy. Where there's profit, what can't be done? Never mind affordable housing — any kind of housing can be built. Is the crux of the problem with the developers? The crux is with the government. For developers, if demolition costs plus the government's miscellaneous fees already amount to 2,000 per square meter, can you expect them to sell at 2,500? Are the steel and concrete falling from the sky? Ask any developer how much in under-the-table expenses they have to spend beyond normal costs to acquire a parcel of land, and you'll know where the problem lies.

Setting aside the abnormal costs of land acquisition, the biggest problem in real estate right now is still with the government. To solve the real estate problem, a dual-track system for real estate development must absolutely be implemented. For housing targeting low-to-middle income groups, the land must be allocated free by the government. With developers' costs plus construction costs and reasonable profit margins, prices will naturally come down. Large state-owned enterprises could even be established specifically for this purpose, operating entirely on a non-profit basis. For housing targeting high-income groups, land acquisition should go through auctions and similar methods, though the procedures must continue to be improved, with developers bearing their own risks. Of course, ordinary housing definitely won't be in prime locations — prime locations cost who knows how much in demolition alone. If the demolition compensation is too low, you think those so-called poor demolition-affected households would accept it? Does the government even have that money? This kind of housing can only be fully market-driven — as long as there are buyers, any price is normal.

There's no such thing as perfect fairness in this world. Back in the era of government-allocated housing, didn't those with power and official positions also get priority? Now things are actually much fairer than before — at least everyone is equal before the renminbi. That is historical progress. As for those developers — tone it down a bit. In other fields, there are plenty of people more impressive than you. If you don't have a penchant for being a kept man or a call boy, showing your face in public a few fewer times won't kill anyone!