Real Estate In China Research Articles

A Study on the Relationship between Civil Automobile Consumption and Real Estate in China

Since the reform and opening up, China’s economy has been booming, especially the real estate industry and the automobile industry, which have become the first and second pillar industries of China’s economy in recent years. Different scholars have studied the impact of the real estate, residential and automotive sectors on other consumption and have different attitudes. However, few studies have analyzed the relationship between the two, and it is impossible to know the specific relationship between them. Therefore, this paper first puts forward a new theoretical hypothesis for the interaction between the two, then uses Eviews7.2 as the main data processing tool, and uses the cointegration test and the Granger causality test to conduct an empirical analysis of the annual number of new registered civil vehicles and the annual real estate and residential development investment amount in China from 2002 to 2022. The results show a long-term and stable equilibrium relationship between civil automobile consumption and the real estate and residential industry and that civil automobile consumption is a one-way Granger reason for the development of the real estate and residential industry, which is in line with one of the hypotheses. Finally, based on the conclusion, this paper proposes policy suggestions to promote real estate development through automobile consumption.

The Current Situation of the Housing Market Bubble in Chinas First-tier Cities

Abstract: With the progression of China's economy and urbanization, the real estate industry experienced rapid growth, accompanied by increasing speculative activities, which led to a continuous rise in housing prices and the formation of a bubble. Therefore, the focus of this study was the current state of China's real estate bubble and potential solutions. Given the issue of excessively high real estate prices, this study specifically examined the price trends and factors contributing to the real estate bubble in four Chinese cities: Beijing, Shanghai, Guangzhou, and Shenzhen. The research methodology was as follows: First, data on the price-to-income ratio was collected to analyze the current state of housing prices in China, revealing that housing prices were still far above their actual value and beyond a reasonable range, thereby indicating the severity of the real estate bubble in China. Second, by analyzing data and reviewing the literature, the factors contributing to China's real estate bubble were identified and categorized into two main groups: policy-related and economic. On the policy side, factors included policy reforms, monetary easing, and reductions in both the benchmark interest rate and the reserve requirement ratio. On the economic side, factors included the growth in per capita disposable income and speculative behavior. Finally, this paper analyzed how a property tax could curb speculative activities by increasing the cost of purchasing properties, thereby reducing demand and speculative behavior. The findings revealed that the real estate bubble in China's first-tier cities remained severe, and that a property tax could help curb speculative activities and slow the pace of bubble expansion.

Research on the Internationalization Strategy of Country Garden Holdings Company Limited

Abstract: For years, China's real estate industry has been in fierce competition. With the development of economic globalization, the domestic market is about to reach saturation gradually. Under these circumstances, Chinas real estate enterprises were obliged to go out to obtain more opportunities to improve their profits and ensure their position in the market. Country Garden Holdings Company Limited, as one of the leading enterprises in the real estate industry, started to invest and expand in overseas markets in 2011. With its forward-looking strategic planning, it has successfully launched projects in many countries and regions, which are worth studying. This paper analyzes the development status of international projects of Country Garden and its internationalization strategy, and explores the reasons for its successful investment, which can provide more information and guidance for Chinas real estate enterprises to invest overseas in the future.

AI in Vocational Training: A Qualitative Interview Study of Early-Stage Practitioners in the Real Estate Brokerage Industry in China

This study aims to unveil the individual and sectoral factors influencing the integration and utilization of artificial intelligence (AI) in vocational training among early-stage practitioners in China's real estate brokerage industry. The study involved in-depth interviews with 33 participants, each possessing less than two years of industry experience and demonstrating either experience with or a keen interest in AI applications. Rooted in the transformative potential of AI in vocational training, thematic analysis was employed to reveal the intricate interplay of individual factors—motivation, attitude, self-efficacy, and digital literacy—alongside sectoral elements such as policies, practices, and organizational culture. The findings illuminate the significant impact of these factors on the acceptance and utilization of AI, underscoring the complexity of participant attitudes, shaped by perceived usefulness and ease of use. Diverse levels of self-efficacy and digital literacy among participants regarding AI adoption were also evident. On the sectoral front, policies play a dual role, either providing support or imposing restrictions on AI adoption, while practices and organizational culture wield substantial influence over the opportunities and challenges associated with AI use. These empirical insights and best practices offer stakeholders valuable guidance to enhance employability and productivity in this ever-evolving industry. Importantly, this study advocates for a more inclusive approach in future research, addressing limitations in sample representativeness and recommending the integration of quantitative methodologies. This approach is crucial for fostering a comprehensive understanding of AI utilization in vocational training, ensuring robust insights for future advancements in the industry.

China's Real Estate Market: Issues and Countermeasures

The real estate sector plays a vital role in China's economy and is a crucial engine of economic growth. The massive investment and construction activity has promoted the upgrading of infrastructure and the development of manufacturing, construction, and related services, thus strongly supporting the expansion of the overall economy. However, with the rapid growth of the real estate market, some problems that cannot be ignored have also been exposed, including rising housing prices, intensified real estate "speculation," and the environmental impact of real estate projects. These problems may threaten the financial system's stability and negatively impact social equity and the ecological environment. This article aims to delve into the main issues facing the real estate industry today, explore their causes, and propose practical countermeasures, aiming to promote the development of the real estate industry in a healthier and more sustainable model to promote long-term stable economic growth.

Financial Analysis of Real Estate Companies Based on the Harvard Framework: A Case Study of Poly Developments and Holdings

China's real estate market saw considerable volatility between 2019 and 2023. Poly Developments and Holdings Group Co., Ltd. successfully weathered the market downturn of 2020, the rebound in 2021, and the subsequent downturn in 2022 to retain its position as one of China's top real estate companies, which has peaked by 2024. Using the Harvard Analytical Framework, this paper covers strategic, accounting, financial, and prospective aspects of Poly Developments over the past five years, conducting a comprehensive financial analysis. By regularly implementing outstanding financial management strategies, Poly Developments clearly shows that it effectively controlled important market volatility over the past five years. Poly Developments achieved exceptional performance by adopting financial methods that were well-suited to its specific circumstances, avoiding excessive aggression during market upswings and excessive caution during downturns. In addition, the study suggests that Poly Developments should boost its financial risk management, grow its market, improve cost control and operational efficiency, and strengthen asset usage and inventory management.

A Comparative Study of The Application of NPV And IRR To Real Estate Investment Decision- Making

The China real estate industry is undergoing a fluctuation nowadays. And this paper is going to investigate this industry by researching a leading enterprise, CHINA VANKE CO., LTD. with the assistance of two financial instruments, Net Present Value (NPV) and Internal Rate of Return (IRR). Furthermore, the paper has another purpose that is comparing the properties between NPV and IRR. This paper uses literature research method and case study to analyse the situation of Vanke and list the possible considerations while having the analysis. After a series of research, the author considers NPV as a better indicator compared to IRR. NPV has the advantage of simple marginal determination, however, the related indicator, discount rate cannot be determined easily and accurately in the real estate analysis since it can be affected by many factors. For advantage of IRR, it is simple to calculate the value because it is only decided by the cashflows. On the other hand, IRR cannot clarify the real estate investment decision-making by itself, it must have the assistance of NPV versus discount rate graph. Consequently, the mixed employment would present a clearer and more comprehensive analysis for investors.

Research on the Influencing Factors of Rental House Prices

Since the 1990s, China's real estate market has gradually recovered, and has developed into a large and mature trading market today, as the housing price increase, the demand of housing rental also increases a lot. Based on this this article aims to identify the factors that have an impact on rental price. The method of multi-linear regression is used to analyze the factors with over 10,000 samples in Guangzhou from May 2020 to June 2020 from the website of LianJia, one of the biggest real estate agencies in China. The dataset contains 10 variables in total, this research uses VIF, Pearson correlation coefficient to narrow the variables down to District, Rent Type, Area, Elevator Flag and Buld Floor these five variables and considered that they have a significant linear relationship with rental price. By focusing on these variables this study provides a view of the relationship of demand and supply of China’s renting market.

Investigation on Influence Factors of the C-REIT Market: Applying the Fama-French Three-Factor Model

This research paper has applied the Fama-French Three-Factor Model to the China Real Estate Investment Trust (C-REIT) market over a two-year period from June 2022 to June 2024. The innovation is recognized as the C-REIT market was established in 2021 with the first 9 REITs issued and few researches were conducted on the C-REITs. The study obtained data from the Wind database in the after-COVID period and concluded that the model fits well for the behavior of the Chinese REIT market. The market premium factor is found to be positive, while the size factor (SMB) is negatively significant, and the value premium (HML) is positively significant. This suggests that REITs with smaller market capitalization and those with a higher book-to-market ratio are more likely to contribute to the portfolio's excess returns. The intercept in the regression is statistically significant and that implies that there may be additional factors that are not captured by the current model. As such, the paper advocates for further research into multi-factor models to explore potential factors.

Using super-efficiency slack-based measure data envelopment analysis with enhanced neural network frontier to evaluate the operating efficiency of Chinese-listed real estate companies

China's real estate industry has faced significant changes and challenges in the aftermath of the COVID-19 pandemic and recent years, and has been unable to maintain its former prosperity. Facing a rapidly changing market environment and new loan restriction policies, real estate companies are encountering unprecedented challenges. Efficiency evaluation and analysis of real estate companies are essential to guide them in improving operational efficiency and adapting to new development models. This paper examines 87 real estate development companies listed on the Shenzhen and Shanghai markets, first evaluating and analyzing their operational efficiency in 2023 using the output-oriented super-efficiency slack-based measure data envelopment analysis (SBM-DEA) method. To address the issue of overestimated operational efficiency in the original model, this paper integrates it with the backpropagation neural network (BPNN) algorithm to obtain more robust re-evaluated efficiency scores. The results align with expectations, showing an overall decline in efficiency scores, and more significant decreases for companies with smaller output shortfalls in the original evaluation. The re-evaluated efficiency scores do not excessively underestimate efficiency and can serve as a reliable proxy for the original scores. The enhanced model combining BPNN with super-efficiency SBM DEA provides reliable and robust efficiency evaluations for these 87 listed real estate companies.

Comparative Analysis Between Japan's Real Estate Economy and China's Real Estate Status

Japan's real estate bubble economy in the 1990s caused a major blow to the Japanese economy, Japan entered the "disappearing 30 years". The causes of Japan's real estate bubble economy and the reasons why the bubble burst are worthy of the world's countries to learn from. 21st century since the rapid development of China's real estate economy, housing prices are growing rapidly. The real estate economy has been overheated in some areas, although the Chinese government has taken relevant measures to cool down, still can't relax the vigilance, people should always pay attention to the overheated areas of real estate prices, land prices. Through the comparison between China and Japan, although the economic structure and development trend are similar when the property overheating phenomenon occurs, the economic development background and international background between the two countries are different, and the governments of the two countries have adopted different strategies to deal with the property overheating phenomenon. So in conclusion, although there are some areas in China where real estate is overheating, China's real estate market will not burst the bubble. In order to prevent China's real estate bubble from bursting and its impact on economic development, China should pay attention to the reasons behind it and make targeted policy adjustments, while also drawing on the lessons learned from other countries to promote the healthy and stable development of the real estate economy.

Analysis of Japan's Real Estate Regulatory Policies and Their Effects

The development of real estate is closely related to China's national economy, and in recent years, China's real estate industry has experienced rapid development and change. With the continuous expansion of the industry's development scale and the increasingly complex market environment, the real estate industry is also facing a series of challenges and problems. Japan also faced the bursting of its real estate bubble in the 1990s. Reviewing the history of the bursting of the real estate bubble in Japan in the 1990s has important research and mirror value for us to clarify the formation and bursting of real estate risks and how to implement appropriate policies. This study analyzes the negative and positive impacts of policies implemented before the bursting of the real estate bubble, and the policies introduced by the Japanese government to address the bursting of the real estate bubble. Based on the results of the analysis of Japan real estate, suggestions are made on the idea of regulating China's real estate industry, the means of regulation and the rhythm of regulation.

Research on Influencing Factors of China Real Estate Price Based on Multiple Linear Regression

Research on Influencing Factors of China Real Estate Price Based on Multiple Linear Regression

Real Estate Economy in the Post-epidemic Era

The COVID-19 outbreak has had a significant impact on China's real estate market, with the sector's recovery lagging behind the overall economy. This study evaluates the pandemic's influence on consumer behavior, housing demand, and preferences, highlighting substantial declines in real estate development investment and commercial housing sales. Key factors contributing to reduced demand include a shift towards remote working models, heightened health and safety concerns, and evolving perceptions of urban living. To stimulate the market, government incentives such as tax breaks and housing subsidies are recommended. Additionally, developers are encouraged to embrace smart city technologies for optimizing energy consumption and providing convenient community services. Emphasizing health-conscious design is crucial for improving air quality and increasing green space while investors should diversify their portfolios to mitigate market volatility risks and enhance resilience. The objective of this study is to devise an appropriate real estate economic recovery plan that aligns with the changing urban to sustain economic growth.

The Impact of Urban Planning on House Prices in China

Urban planning is a major part of urban development and leads the future direction of the city. In different times and social situations, urban planning can change, and this change can have an impact on house prices. This paper analyzes the changes in house prices due to urban planning, with China as the main subject. China's real estate market has changed significantly. Housing prices have changed more dramatically and are more susceptible to external factors. Through the collection of data on house prices in Beijing, Jiangsu, and other regions and the development of urban planning, it summarizes the important factors of urban planning affecting house prices and provides an in-depth analysis of different factors. Through the conclusions obtained from different analyses, this essay summarizes the relationship between urban planning and house prices and provides certain suggestions to the government on plans and improvements to address the issues involved.

Quantifying embodied energy consumption and air pollutant emissions in China's real estate development in 2000–2020

The real estate industry, an end user and pivotal economic driver worldwide, significantly affects material and energy consumption, and indirectly determines air pollutant emissions. Assessing these variables from the angle of end users is essential to provide a national evaluation strategy for energy consumption and air pollutant emissions, particularly for future policies. As the first step, this study aims to develop a framework to estimate the consumption of building materials and energy, and the resultant embodied pollutant emissions from real estate development in China between 2000 and 2020. Data derived from the framework indicate a rise in building material consumption from 111.8 Mt. in 2000 to 325.1 Mt. in 2020, despite a post-2014 decline due to reduced construction activities. The real estate sector is integral to the demand for key materials, such as steel, cement, and glass, although their relative consumption has decreased within the sector. In detail, energy use in real estate development increased from 57.1 Mtce in 2000 to 134.7 Mtce by 2020, representing 3–5% of China's total energy consumption. A substantial decrease in major pollutant emissions from the real estate occurred from 2010 to 2020 in China, which is attributed to improved control measures and technologies. In addition, a focused regional analysis indicated a developmental shift towards the central and western provinces, emphasizing the need for tailored emission-reduction strategies therein. These findings underscore the substantial role of China's real estate development in material, energy consumption, and pollutant emissions. The insights provided by this study are vital for formulating strategic plans and foundational data to support China's continuous efforts to improve air quality.

A Study of Debt Problems in the Chinese Real Estate Industry

This paper will focus on real estate industry in China, uses Evergrande group as a case to compare with another Chinese real estate company Vanke and a real estate company of United State which is AvalonBay Communities, Inc. This paper will introduce the background of real estate industry in China, and base on the case which is bankruptcy of Evergrande Group to throughout the causes find out the issues of real estate in China, in causes is discuss of three factors: Industry characteristics, financing channels, loan evaluation, analysing what make Evergrande can owe a massive $2.4 trillion in debt, and analysing the United States real estate industry not usually having such high leverage. Essay will tell the strategy of real estate companies in China usually do. The strategy led to Evergrande group bankruptcy and compare with Vanke uses what strategy avoid debt crisis. Finally, conclude the chaos of real estate industry in China reflected by Evergrande group, recognise the issues of Evergrande group and prevent the significant consequence occur again.

Assessing green production efficiency and spatial characteristics of China’s real estate industry based on the undesirable super-SBM model

As China strives to balance rapid urbanization with environmental conservation, increasing attention is being paid to the pursuit of green production efficiency (GPE) in the real estate industry. The undesirable super-SBM model was used to calculate the GPE of China's real estate industry from 2001 to 2020. Additionally, GPE spatial distribution characteristics in China's real estate industry were analyzed using the standard deviation ellipse (SDE), Moran’s index, Theil index, random kernel density estimation (RKDA), and spatial Markov chain (SMC) methods. The GPE exhibited a U-shaped trend, with 2008 as the inflection point, first decreasing and then increasing. It reached a maximum value of 0.747 in 2020. The Theil index increased from 0.043 to 0.121 nationwide, indicating the overall characteristics of low-level slow growth, and imbalance. Discrepancies in input–output scales, the southward shift of economic centers, and population movements contribute significantly to the disparities between the east and west, north and south, and regions divided by the Hu Huanyong Line (Hu Line). The GPE exhibited club convergence characteristics; however, polarization phenomena exist in local areas. Spatial spillover effects were also observed in GPE. Finally, we provide recommendations for promoting green development in the real estate industry, including green building technology, fiscal subsidy investment, and population migration management.

Research on the Motivation and Effect of Longfor Group's Transformation to Asset-light Operation Mode

Since the real estate marketization reform in 1998, China's real estate industry has continued to focus on asset operation mode, at that time in the golden period of the industry, real estate enterprises only need to hoard a lot of land, wait for the appreciation of the land and then resell, you can get considerable returns. However, in the context of the current slowdown in the economic growth of China's real estate industry, it is difficult for commercial real estate enterprises to continue to operate with heavy assets, so such enterprises begin to seek transformation, and want to change a profit model to match the current market. As a new way for enterprises to accumulate core competence and maximize value, "asset-light operation" model has been highly valued by the academic and business circles. This paper takes Longfor Group, a representative real estate enterprise, as the research object, and makes an in-depth analysis of the company's finance from the perspective of its financial characteristics and financial performance, in order to provide certain theoretical references for the successful application of the transformation and development of similar companies.

Examining the integration of real estate into financial assets: A critical analysis of China's regulatory framework for nonreal estate corporations

This study explores the integration of real estate into financial assets within the context of China's regulatory framework for nonreal estate corporate listed companies (NRELCs). The purpose is to assess the impact of NRELCs’ involvement in the real estate market on housing prices as influenced by monetary policy. The need for a solution is driven by the significant role of real estate in China's economic strategy and the challenges posed by speculative investments. Utilizing a mixed-method approach, this study employs empirical models to analyze data from 2007 to 2018. The key findings indicate that NRELCs’ entry into the real estate market significantly stimulates housing prices, with monetary policy acting as a critical driver. The interaction between credit expansion and NRELCs’ real estate activities exacerbates price fluctuations. Our findings highlight the necessity of controlling the financial attributes of real estate and suggest regulatory measures to curb speculative demand. The potential impact includes informing policy decisions to stabilize the housing market and promote sustainable economic growth.