Abstract
China has been attracting overseas real estate developers (OREDs) with its expanding real estate market since the adoption of the Open Door Policy. This attractiveness has been enhanced by China's accession to the World Trade Organization and the Closer Economic Partnership Arrangement and is likely to remain for the foreseeable future. However, OREDs to conduct developments in China which adopts a socialist market-oriented approach is not without difficulties. The study has developed a SWOT dimensional analysis technique which is able to integrate the strengths and weaknesses of OREDs and also the opportunities and threats found in the market for formulating their (s)trategic plans and market positions. Apart from proposing a holistic model for OREDs’ strategic planning, the findings also suggested that OREDs in Guangzhou are in general strong in management and financial capacity but weak in understanding the market conditions. Building up a localized management team which understands the market and has good connection with local officials and business peoplė is of prime concerns. Santrauka Patvirtinus atvirų durų politiką (angl. Open Door Policy), besiplečianti Kinijos nekilnojamojo turto rinka pritraukia vis daugiau užsienio nekilnojamojo turto plėtotojų (angl. OREDs). Toks jos patrauklumas išaugo Kinijai įstojus į PPO ir įgijus glaudesnės ekonominės partnerystės statusą (angl. Closer Economic Partnership Arrangement), be to, numatoma, kad artimiausiu metu jis niekur neišnyks. Tačiau užsienio nekilnojamojo turto plėtotojai, vykdantys plėtrą Kinijoje, kurioje taikomas socialistinis, į rinką orientuotas požiūris, susiduria su sunkumais. Tyrimo metu buvo sukurtas lyginamosios SSGG analizės metodas, leidžiantis integruoti užsienio nekilnojamojo turto plėtros specialistų stiprybes ir silpnybes bei aptiktas rinkoje galimybes ir grėsmes, kurios padės suformuluoti strateginius jų planus ir rinkos pozicijas. Be pasiūlyto holistinio modelio užsienio nekilnojamojo turto plėtotojų strateginiam planavimui, rezultatai rodo, kad užsienio nekilnojamojo turto plėtotojai Guangžou užima stiprią poziciją finansų ir valdymo srityje, tačiau silpnai orientuojasi rinkos sąlygomis. Būtina laikytis esminės koncepcijos – sukurti lokalią valdymo komandą, gerai besiorientuojančią rinkoje ir palaikančią gerus santykius su vietos valdžia ir verslininkais.
Highlights
The housing system in Mainland China has shifted from welfare-based to market-oriented since the adoption of the Open Door Policy in the early 1980s through a series of market reforms to encourage the development of a private housing market (Li and Huang, 2006)
Combining the information collected from the case study and interviews, Section four built up the SWOT(S) in which a strategic plan using the SWOT dimensional analysis is formulated for Overseas developers (OREDs) participating in Guangzhou’s real estate development
Mainland China has been attracting OREDs with its expanding real estate market since the adoption of Open Door Policy in the early 80s. This attractiveness has been further enhanced with the accession to the World Trade Organization (WTO) and the Closer Economic Partnership Arrangement (CEPA) and is likely to remain for the foreseeable future
Summary
The housing system in Mainland China has shifted from welfare-based to market-oriented since the adoption of the Open Door Policy in the early 1980s through a series of market reforms to encourage the development of a private housing market (Li and Huang, 2006). To get a better control on the reforms, the central government set up Special Economic Zones (SEZs) and Coastal Development Areas (CDAs) in 1980s in which foreign investors and overseas Chinese were allowed to conduct business in these areas (Figure 1) These areas were provided with a set of special economic policies which allowed the local governments to utilize an economic management system that did not exist in the rest of Mainland China in order to attract both local and overseas investors. Using Guangzhou as the case, the study has been conducted to investigate the competitiveness of overseas developers in the real estate market on the Mainland using SWOT dimensional analysis technique. Combining the information collected from the case study and interviews, Section four built up the SWOT(S) in which a strategic plan using the SWOT dimensional analysis is formulated for OREDs participating in Guangzhou’s real estate development.
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