Abstract
Considering that the real estate industry is a critical industry to promote the economy in China, it is necessary to measure the real estate performance. However, few studies about the performance evaluation of China’s real estate industry have focused on the production process. To fill this gap, this paper proposes a two-stage framework to investigate the real estate productivity of 30 sample provinces on mainland China from 2008 to 2015, based on a common-weight global Malmquist productivity index (MPI). The major findings are shown as follows: (a) the real estate efficiency is low, and it is mainly caused by the inefficiency in the sales stage, not the development stage; (b) the development trend of the real estate sector in China is sensitive to the government policies, and the fluctuations of MPI are consistent with the direction of policy adjustment during the observation period; (c) as for the regional analysis of MPI, we introduce the concept of the dependence degree of the economy on the real estate industry and predict that MPI in economically underdeveloped regions may decline in the future. Finally, policy recommendations are provided for the high-quality development of China’s real estate industry.
Highlights
Since the reform of China’s housing system in 1998, the real estate sector has become one of the most critical components of improving the national economy
In regards to the operational efficiency, Li (2008) calculates the operating efficiency of the real estate industry in 30 large and medium-sized cities in China using the cross efficiency data envelopment analysis (DEA) model, and the results show that the cross efficiency of 30 cities is distributed between 0.5 and 0.8
Indicators based on a common-weight global Malmquist productivity index (MPI) including the two-stage efficiency and productivity are developed to measure the performance of the real estate sector in 30 sample provinces of China from 2008 to 2015
Summary
Since the reform of China’s housing system in 1998, the real estate sector has become one of the most critical components of improving the national economy. It is of considerable significance to explore how to promote the high-quality development of the real estate sector in China. With the reform of China’s housing system, the Chinese government gradually promotes the commercialization of the real estate industry. Commercial housing in China is the general term for houses sold or rented in the market, including residential buildings, commercial buildings (e.g., office buildings), and other buildings, which refers to houses developed by a real estate company (individual or foreign company) that rents land use rights to government agencies for 40, 50, or 70 years with the approval of relevant government departments (Cao, 2003)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
