1, land use right system: China implements the state-owned land system, and the land use right belongs to the state. Developers can carry out real estate development after obtaining land use rights. When buyers buy real estate, they actually buy land use rights. Therefore, the term of residential property right is limited by the term of land use right.
2. Policy: According to the People's Republic of China (PRC) Urban Real Estate Management Law, the right to use residential land will be automatically renewed upon expiration. However, the specific renewal policy is not clear, so the actual term of residential property rights is still 70 years.
3. Development of the real estate market: A 70-year property right period is conducive to the development of the real estate market. On the one hand, shorter property rights are conducive to the liquidity of the real estate market, and buyers can buy, sell and mortgage real estate more easily; On the other hand, the setting of property rights also helps to control the bubble in the real estate market and avoid the waste of resources caused by holding real estate for a long time.