Real estate market downturn security industry is affected

After the domestic real estate experienced unusually explosive market conditions in 2009 and 2010, the State Council held a meeting on January 26, 2011 to release the real estate “State of the Eight” requirement to further regulate the real estate market. All localities must determine the target of price control and make public announcements. Immediately following the gradual tightening of domestic monetary policy, the major banks increased the proportion of loan repayments, gradually implemented the purchase restriction measures in various regions, and the tightly and tightly controlled policies made the transaction price and transaction volume of the real estate market apparently declined in the second half of the year. The monthly real estate industry report of Galaxy Securities showed that the transaction prices of 30 monitoring cities in October were steadily decreasing, the average price of half-year cities was within 5%, and the average price of 30% cities was down. Key cities all showed stable or declining prices, of which the Shanghai and Hangzhou metropolitan areas all fell by more than 15% compared with the previous month, and the decline in Chongqing exceeded 10%.

With the shrinking volume and price, the financial situation of real estate companies began to crumble. The recent "Green City" incident was quite eye-catching. Analysts believe that, recently, the primary task of real estate companies is to increase revenues and reduce expenditures, compress land purchases and investment projects, and the subsequent growth in real estate investment falls.

In the voice of falling house prices across the country, the land market, which is closely related to the property market, has become increasingly cold. The data released by the China Index Research Institute in November showed that in October, 1365 cases of land were sold in 133 cities across the country, with an area of ​​55 million square meters, a 40% decrease compared to the previous period and a 37% year-on-year decrease; of which 408 were for residential use, and the transaction area was 408. In 2004, it was reduced by 37% from the previous quarter and 45% year-on-year. Among the hot-spot cities, Shenzhen, Xiamen, Fuzhou, Luoyang, Jilin and other cities showed no residential land for the entire month. In Guangzhou, 19 land plots with a total area of ​​410,000 square meters were unattended. The real estate "golden nine silver ten" vision was completely shattered.

The state's control policies on the real estate market, as well as the recent decline in a series of transaction volumes and transaction prices in the real estate market and the increasingly colder land market, will affect the security market demand? Will it affect the continuous development of the security industry? In particular, will there be any adverse impact on the building intercom, smart home, and surveillance alarm market?

Real estate is one of the major application markets for security products. As people's demands for home security and intelligence continue to increase, the degree of integration between the real estate industry and the security industry has further deepened, and the use of security products in the new residential communities has reached a point where it is ubiquitous. The application of real estate projects to new security products and the upgrading of old facilities are all growth points that stimulate the demand of the security market. Among them, the building intercom, entrance and exit control, smart home, and monitoring and alarming areas have become more apparent.

The first recommended standard for the security of residential quarters in China, "General Technical Requirements for Security Protection Systems for Residential Quarters," has been officially implemented since December 1, 2008. Standards stipulate the monitoring centers, fences, and video surveillance systems of residential quarters, including the building of visitor intercom systems and access control systems at the entrances and exits of buildings and residents' offices.

On November 6, 2011, Premier Wen Jiabao said in St. Petersburg, Russia when attending the Shanghai Cooperation Organization Summit that China's downward adjustment of housing prices is a firm policy of the country. Adjusted housing prices will enable the people to accept and also make the real estate industry develop in a healthy and orderly manner. Real estate regulation and control, we have said that for two years, some major measures have been introduced, especially this year we must ensure the construction of ten million sets of affordable housing projects, which is bound to ease the pressure on housing prices, ease the residents Demand, the overall situation of house prices is still in a stalemate, but this month has also begun to loosen. Here I particularly want to emphasize that for a series of real estate control measures, we must not shake in the slightest. Our goal is to make house prices return to reasonable prices.

From the speech of Premier Wen Jiabao, we can basically get the answers to the above questions. The phenomenon that real estate market control policies and real estate market demand is temporarily not flourishing will not fundamentally affect the sustained and rapid development of the security industry, from a more far-reaching level. Seeing also will promote the sustainable and rapid development of the security industry.

First of all, the state's real estate control policy goal is to make house prices return to reasonable prices.

At present, the domestic housing prices are too high, the real estate bubble is too large, not the housing consumer's supply and demand tension pushed up, but the housing speculation speculators speculation high. If the housing market is a market where speculative speculation is prevalent, it will not only be detrimental to the healthy development of the national economy, but will also harm the interests of the general public. Therefore, the current real estate market regulation is to return to basic residential functions, that is, to make housing prices return to rationality.

At the same time, as China's urbanization process continues to deepen, the demand in the real estate market is a rigid demand, and real estate is also involved in the survival and development of some important production industries such as steel and cement. The use of land, finance, and taxation by the state to stabilize the real estate market is to stabilize the real estate in a certain area by means of policies and cannot grow too fast. A stable and reasonable price is the real goal. These policies may affect the direction of the property market and may have more or less impact on the security industry.

However, when the price of housing returns to rationality, the real estate market will return to a consumer market, and most people will also have the ability to purchase. In this way, it will be more conducive to the development of the real estate market and, in turn, promote the development of the security market.

Secondly, Premier Wen emphasized that this year we must ensure the construction of ten million sets of affordable housing projects.

Affordable housing is a concept corresponding to commodity housing, which refers to the government's limited standard, limited-price or rent-providing housing for low-income housing families. Generally speaking, low-rent housing, affordable housing and Policy-based rental housing. In recent years, China has vigorously strengthened the construction of affordable housing, further improved the living conditions of the people and promoted the healthy development of the real estate market.

In the next five years, the country plans to build 36 million new affordable housing units, about twice the scale of the past 10 years; at the same time, more than 1.5 million dangerous houses in rural areas will be renovated each year.

In 2011, 10 million sets of affordable housing and shantytown reconstruction will be started nationwide, an increase of over 70% over the previous year, setting the highest in calendar years. On October 25, 2011, the Ministry of Housing and Urban-Rural Development revealed that 10 million sets of affordable housing in 2011 can be fully started before the end of November. Safeguarded housing will be built in accordance with national standards for the development of residential security facilities, which will give security monitoring, building intercom, access control, perimeter alarm, parking area to bring attractive market.

With the continuous strengthening of the construction of affordable housing, the investment of national and local governments in the protection of housing has continued to increase. It will certainly promote the rapid development of the security industry.

From the point of view of the security industry itself, although the security industry, such as surveillance, security, building intercom, access control card, and parking lot, has a close relationship with real estate, real estate is only a relatively limited component of security applications. The security products used in housing construction are not To the entire security market, 30%, a larger market in the city's prevention and control of public order, traffic monitoring and emerging high-definition network monitoring market.

In addition, security is a product of social development and a rigid demand for economic development and changes in social structure. With the improvement of living standards, people's demand for security will be even higher. Therefore, the state's control policy on real estate will not affect the general trend of the security industry's upward development, but it will bring impacts to certain enterprises to a certain extent.

With the deepening of the real estate market's regulation and control policies and the strengthening of state-sponsored housing construction, China’s real estate market will develop towards healthy and sustainable development. The demand for security products will continue to increase, and the penetration rate of security products will continue to increase, plus security. The popularization and intelligence of the industry products have been continuously improved. We remain optimistic about the prospects of China's real estate security market in the next few years.