Chapter 533 Sensitive Issues
The river wind strolls alone on the riverside road. In the evening, people are everywhere along the Shicheng River. Willow branches are flying in the river wind. The wide river surface looks a little turbid. This is the flood caused by heavy rain in the mountains in the upper reaches.
After experiencing the 1998 flood, Shicheng District learned from its mistakes and increased its investment in the next two or three years to renovate several major rivers. Not only did it restore the natural protected forest area, but it also made great efforts on the embankments in the urban area. However, it was because of the collapse of Zong Haicheng and Wan Changling was promoted to the secretary of the district party committee. Of course, this is closely related to Jiang's vigorous investment in Shicheng. After all, the development of the city cannot be separated from the development of the economy, and even more so. Jiang's vigorous investment in Shicheng and the continuous development and growth of Jiangzhou Heavy Industry Group, the country's leading military industry group, has brought rapid development to Shicheng's economy.
In the past, Shicheng River was a Tianshui River.
The so-called Tianshui River is a river when there is precipitation in the sky, and it is usually just a dry ditche. Although the Shicheng River will not be cut off and becomes a dry ditche, the flow rate is very small for most of the year, and the river surface is very narrow, just a few meters wide, and the flow rate is only about ten cubic meters per second.
This has nothing to do with the fact that Shicheng River is not a big river.
However, the annual flow of Shicheng River is relatively stable, and it has remained roughly between 200 and 500 cubic meters per second all year round, which is related to a measure taken by the Shicheng District Government.
The two tributaries of the Shicheng River, the Ceshan River from the west and the Sancha River from the northwest, and the two rivers converge to the urban area, divide the Shicheng city into three areas: Xishan, north of the city and south of the city.
The biggest move by the Shicheng District Government to transform the Shicheng River was to change the original direction of the water flowing out of the Yunu Lake and introduce it into the Sancha River, a tributary of the Shicheng River. In this way, with the flow of Yunu Lake with a water accumulation area of hundreds of square kilometers, the Shicheng River has a relatively stable source of water flow, making the Shicheng River gurgling all year round, which has brought huge changes to the city.
Although the two tributaries of the Shicheng River and the Shicheng River formed by the confluence are dry ditches most of the year, the width of the riverbed is quite considerable. This is mainly because the rainfall in the Shicheng area is relatively large, and once it rains heavily, the flood will be surging and the situation will be fierce.
In the original time, the Shicheng government only built a river embankment within the old city area. The riverside park built in the Zonghaicheng era was built on the basis of building a river embankment and reducing the river surface.
As Shicheng District fully renovated the three rivers, a large area of river beaches was obtained, which even became the main source of territory for two of the three new districts in Shicheng District’s urban construction. Of course, the cost was also very expensive.
Huge investment has brought high returns, especially with the increasing popularity of the real estate market, several new districts in the urban area have been completely hot.
The real estate industry, which has become popular with Shicheng's rapid industrial economy, has been driven by the prosperous tourism industry, and land prices have soared. The commercial and residential land in Chengbei New District and Chengdong New District have quickly risen to between 1,500 and 2,000 yuan, far higher than other second-level cities in the city. Although there is still a certain distance between 2,500 and 3,000 yuan in the main urban area of Jiangzhou, the growth rate is much higher than that in Jiangzhou.
Except for Chengbei New District and Chengdong New District, the land prices in Chengnan New District have risen steadily. Although they are not as fierce as the growth trend of Chengbei New District and Chengdong New District, their original land prices are not low, so it seems to be quite impressive after repeated increases.
This is a problem. It seems more sensitive to issues involving people's livelihood.
Jiang Feng remembered that it had started in 2004. The domestic real estate industry has truly entered a crazy era, making money by acquiring land, and the difference in land prices made local governments willing to flock to it, which also caused two huge unstable factors.
First, in the process of urbanization, the large cakes are constantly spreading outward, and the landless farmers are expropriated. After landless farmers turn to non-government, the policies have lagged significantly in terms of compensation obtained, social security and employment rights. Local governments lack prescient in investment in this regard, or are prescient but unwilling to spend their efforts. This makes it difficult for this group of people who have just entered urban residents to enjoy the benefits of being urban residents, and they also deeply feel the negative impact of the loss of land. If corruption is mixed with, unfair distribution and some cases are involved, it is very easy to cause unstable events.
The second factor involves the group with C. The accelerated urbanization process has caused the population to continue to enter cities from rural areas. Whether it is through university expansion, the urbanization is graduating from university, or the urban economic development attracts various capable people, talents and labor force in rural areas to enter cities. This is a considerable group. The huge increase in urban population and the desire for improvement of living conditions have quickly amplified the demand for housing. This also makes local governments that can obtain huge land transfer fees extremely enthusiastically support the development of the real estate industry, so a wave of almost crazy real estate booms has formed throughout the country. In addition, the prevalence of speculation has led to a rapid rise in domestic housing prices.
This also brings a huge problem, that is, the rate of housing prices rising far exceeds the rate of income growth of ordinary workers. In 2001, a month's salary might be able to buy two or even three square meters of housing, but by 2006, you might not be able to afford even one square meters.
Moreover, as time goes by, this trend is becoming more and more obvious. Inland cities like Shicheng are in a slightly better situation, while the speed of housing prices and rockets in coastal first-tier cities has been shocking, and this speed will continue for a long time.
The rise in housing prices will not only make ordinary urban workers feel the crisis of survival, but either buy a house with a mortgage loan and become a house slave, or watch the price rise make the dream of buying a house and getting married farther away from you, but will also greatly increase social instability factors.
When a large group lives in an environment with insecurity, the negative emotions it brings to the entire society will cause a city, region, and even a country to appear in an unstable state that is prone to anger, and this point is easily pointed at as a government that undertakes housing price regulation policies.
As an emerging city, Shicheng, especially with rapid economic development and rapid expansion of the city, makes the situation quite serious in this regard.
The only advantage is that Shicheng has gained the lead and started in the demolition of the three new districts in the urban area, which can also be regarded as laying a good foundation for the urban development of Shicheng. Since Chengbei New District and Chengdong New District were originally both boulderless river beaches and old rivers, it took a huge advantage in demolition and compensation. This is also the source and foundation for the development of urban construction in Shicheng District. If this piece of boulderless land was not developed and transferred, the entire urban construction in Shicheng District could be like water without a source, at least it would have to be delayed a lot.
It is precisely because we have dug the first pot of gold from the development of the first phase of the two new districts that we have supported the huge amount of funds needed for the infrastructure construction of several bridges in the urban area and the Chengbei New District and the Chengdong New District, as well as the urban style renovation and repair of the old city, and it is also possible to support the infrastructure of the second and even third phases of the Chengbei New District to take the lead. It is also possible to invest in urban construction in Shicheng District as a virtuous cycle like a bottomless black hole. Without this first pot of gold, it is entirely impossible to promote such a large-scale construction of Shicheng City through loans.
However, what made Jiang Feng a little worried is that in the current Shicheng District government team, whether it is district mayor Zhang Chengru, executive deputy district mayor Gu Yunjian, or even deputy district mayor Zhang Wenkang, who is in charge of construction, they only saw the beautiful side brought by the development and construction of several new districts. Of course, they also felt the great benefits brought by the further acceleration of the urban process and the rapid development of Shicheng's industrial economy and the tertiary industry. However, many people more or less intentionally or unintentionally ignored the huge impact of the soaring housing prices brought by the urbanization process on ordinary citizens, especially the middle- and low-income classes.
Jiang Feng realized this problem from the very beginning. From the planning of Chengbei New District and Chengdong New District to the second phase expansion of Chengnan New District, he keenly realized that the development of Shicheng City has increased rapidly due to the rapid growth of industrial economy, and this has also promoted the already rising land prices and housing prices in a certain aspect.
The rise in land prices can undoubtedly bring generous benefits to the government. Land transfer fees have already made the fiscal revenue of many cities called land finance, ranging from 30% to 40%, and from 60 to 70%. Due to the rapid development of industry and tertiary industries in Shicheng, the tax growth rate is very fast, so the proportion of land income in fiscal revenue is not high, only about 10%.
In Shicheng's tax revenue, Jiang's family is a well-deserved main force, because since its inception, the Jiang family has invested nearly 100 billion yuan in Shicheng District. Even the entire Shicheng Development Zone was established based on Jiang's family and Jiangzhou Heavy Industry Group. Even the companies and manufacturers that later entered Shicheng Development Zone were basically the upstream and downstream industries of Jiang's family and Jiangzhou Heavy Industry Group. It can be said that these companies and manufacturers gathered here because Jiang's family and Jiangzhou Heavy Industry Group settled here.
Nowadays, the taxes paid to Shicheng District by Jiang’s industry in Shicheng District are calculated in one billion every year, which is also the fundamental reason why Jiang’s industry has a transcendent status in Shicheng District and even Jiangzhou City.
As for Jiangzhou Heavy Industry Group, although it is a centrally-owned enterprise, it is on the ground of Shicheng after all, and the employees of the enterprise also live in Shicheng, which also plays a huge role in the development of Shicheng.
Although urban development is increasingly dependent on land, urban development has indeed brought great development to service industries such as construction and real estate industries.
Chapter completed!