Real Estate In China Research Articles

The Impact of Covid-19 on China's Real Estate Market

The real estate industry is one of the most vital industries in any economy. The industry entails improvements to structures, roads, utility systems, and buildings and is responsible for creating many jobs. Many challenges have faced the real estate industry, including outbreaks of COVID-19 and Pneumoconiosis. The COVID-19 pandemic had a huge effect on the real estate industry, with sales of property declining significantly. There are three scenarios that can be used to explain the trajectory of the real estate industry after the pandemic. The first scenario, which is the negative scenario, shows that commercial property sales will decline by 13% year on year. The second optimistic scenario points out that sales will increase during the second half of the year and cause a 7% decrease year-on-year. Lastly, under the neutral scenario, sales will be the same as those of the previous years, and the decrease may exceed 10%. In conclusion, the real estate industry faces significant challenges due to the pandemic. There are likely to be differences in recovery as first-tier cities such as Shanghai and Beijing are expected to rebound due to a fall in mortgage rates and strong talent recruiting. Second-tier cities will experience the quickest recovery due to strong urban foundations, high population, housing demand, and economic resilience.

Comparison of financing models of real estate enterprises: evidence from Vanke and Poly

Contemporarily, the problem of financing plays a critical role in real estate enterprises. As for China, the financing model of real estate enterprises is single, and the capital structure is unreasonable. Therefore, it is particularly crucial for real estate companies to search an appropriate financing model. In this paper, we investigate the financing models based on the case analysis of Poly Development and Vanke, which are both leading enterprises in China's real estate enterprises, and compare the differences in the cost of funds and cash flow. According to the analysis, Vanke's financing model was better than Poly's development. If real estate enterprises want to break through the current predicament, they should change the situation of relying on bank loans, e.g., raise fundings from additional corporate bonds and medium-term notes to increase the proportion of direct financing and reduce the proportion of indirect financing. Enterprises should also explore diversified financing methods and expand financing channels. These results provide clues to guide real estate companies to obtain a more reasonable and perfect further exploration.

The performance of non-listed opportunity real estate funds in China

PurposeOpportunity real estate funds are an important style of real estate investing for institutional investors seeking nonlisted real estate exposure. Importantly, institutional investors have sought exposure to the China real estate market, often via opportunity real estate funds. This has been by a pure China opportunity real estate fund (100% China opportunity real estate) or by a pan-Asia opportunity real estate fund where China opportunity real estate was part of this pan-Asia opportunity real estate portfolio. Using two bespoke China opportunity real estate indices developed by the authors, this paper aims to assess the risk-adjusted performance and portfolio diversification benefits of China opportunity real estate in a mixed-asset portfolio over 2008–2020. It also highlights critical issues for institutional investors going forward to factor into their real estate investment decision-making for effective China real estate exposure.Design/methodology/approachThis paper develops two bespoke China opportunity real estate fund performance indices to assess the risk-adjusted performance and portfolio diversification benefits of China opportunity real estate funds in a mixed-asset portfolio over 2008–2020. An asset allocation diagram is used to assess the role of China opportunity real estate in a mixed-asset portfolio via both the non-listed and listed real estate investment channels.FindingsOver 2008–2020, China opportunity real estate exposure via pan-Asia opportunity real estate funds were seen to outperform pure China opportunity real estate funds. In both formats, China opportunity real estate funds were seen to have a significant role in a China mixed-asset portfolio across most of the portfolio risk spectrum; particularly compared to listed real estate exposure in China. On-going issues regarding real estate risk management in China will take on increased importance for institutional investors seeking China real estate exposure.Practical implicationsOpportunity real estate funds are an important style of real estate investing, often used by institutional investors to gain non-listed real estate exposure in a developing real estate market. This style of real estate investing has been popular with institutional investors seeking exposure to China real estate as part of the China economic growth dynamic. The results of this research highlight the importance of opportunity real estate investing in China, both via a pure China opportunity real estate fund and via a pan-Asia opportunity real estate fund. Based on this empirical analysis, China opportunity real estate exposure is seen to be more effective via a pan-Asia opportunity real estate fund than a 100% China opportunity real estate fund. A range of practical China real estate investment issues are also highlighted for the effective delivery of China real estate exposure for institutional investors going forward; this particularly relates to the on-going risk management for real estate investment in China.Originality/valueThis paper is the first empirical research analysis of the risk-adjusted performance of China opportunity real estate and its role in a mixed-asset portfolio. Using bespoke China opportunity real estate fund indices developed by the authors, this research enables empirically-validated, more informed and practical opportunity real estate investment decision-making regarding the strategic role of China opportunity real estate in an institutional investor's portfolio. It also highlights the importance of various facets of real estate risk management in China going forward.

Visual recognition and prediction analysis of China's real estate index and stock trend based on CNN-LSTM algorithm optimized by neural networks.

Today, with the rapid growth of Internet technology, the changing trend of real estate finance has brought great an impact on the progress of the social economy. In order to explore the visual identification (VI) effect of Convolutional Neural Network and Long Short-Term Memory (CNN-LSTM) algorithm based on neural network optimization on China's real estate index and stock trend, in this study, artificial neural network (ANN) algorithm is introduced to predict its trend. Firstly, LSTM algorithm can effectively solve the problem of vanishing gradient, which is suitable for dealing with the problems related to time series. Secondly, CNN, with its unique fine-grained convolution operation, has significant advantages in classification problems. Finally, combining the LSTM algorithm with the CNN algorithm, and using the Bayesian Network (BN) layer as the transition layer for further optimization, the CNN-LSTM algorithm based on neural network optimization has been constructed for the VI and prediction model of real estate index and stock trend. Through the performance verification of the model, the results reveal that the CNN-LSTM optimization algorithm has a more accurate prediction effect, the prediction accuracy is 90.55%, and the prediction time is only 52.05s. At the same time, the significance advantage of CNN-LSTM algorithm is verified by statistical method, which can provide experimental reference for intelligent VI and prediction of trend of China real estate index and property company stocks.

Research on the Development of China Real Estate in the future of health care Industry

The healthcare industry is one of the fastest-growing sectors globally, and its expansion has implications for a wide range of industries, including the real estate sector. In China, the real estate market has been closely linked with the healthcare industry due to the growing demand for healthcare facilities, particularly in urban areas.This research aims to explore the development of the China real estate market in the future of the healthcare industry. It will examine the current state of the healthcare industry and the key trends driving its growth in China, as well as the role of real estate in facilitating this growth. The research will draw on a range of data sources, including government reports, industry publications, and academic literature, to provide a comprehensive overview of the current state of the healthcare industry and its future trajectory. The research will also include case studies of successful healthcare and real estate development projects in China to provide a practical perspective on the opportunities and challenges in this space.The findings of this research will have implications for a wide range of stakeholders, including real estate developers, investors, and policymakers. By better understanding the link between the healthcare industry and the real estate sector in China, stakeholders can make more informed decisions regarding investment and development opportunities in this rapidly growing industry.Overall, this research will contribute to a better understanding of the complex interplay between the healthcare industry and the real estate market in China and will provide insights into the future of these industries in the country

Strategic Choice of Commercial Real Estate in China's First-Tier Cities in The Oost-Epidemic Era

In recent years, affected by the Covid-19 and the current policy regulation of China's residential real estate market, the commercial real estate market has shown repeated fluctuations. During a historical period (2005-2015), thanks to the government's vigorous development of real estate and the influx of many people into large cities, commercial real estate in first-tier cities have experienced long-term prosperity. Some leading companies have earned high profits and occupied a large market share through the cycle of "financing - investment and construction - selling or operating - refinancing...". However, this phenomenon began to change in 2015. As the country adjusted its macro policies, financing costs continue to increase, the total area of new commercial real estate projects is decreasing year by year, and the market size of traditional commercial real estate is also shrinking, making people soberly aware that the prosperity and success of commercial real estate are deeply dependent on national development strategies, while depends on social and economic development and people's consumption habits. The study's results found that since 2019, the expansion scale and profitability of China's commercial real estate have both shrunk. On the one hand, residents' consumption ability and willingness have weakened due to the impact of Covid-19 and the business cycle. On the other hand, young consumer groups are no longer satisfied with a single business model; the upgrade of the consumption content and the rise of e-commerce shopping have had an impact on traditional commercial real estate, which forces companies to make corresponding adjustments to changes in the external environment when deciding long-term strategies. Using the PEST analysis tool to create a comprehensive and objective analysis of the current political, economic, social, and technological environment will help enterprises better judge external factors. Therefore, when formulating development strategies, they can better align their development plans with the country's new development strategy, earning strategic initiative and maintaining competitive vitality in the recent historical period.

Derisking Real Estate in China's Hybrid Economy

Derisking Real Estate in China's Hybrid Economy

RESEARCH ON BUSINESS PROCESS REENGINEERING OF REAL ESTATE ENTERPRISES

With the deepening of economic globalization, the global market has gradually changed from the situation dominated by sellers to the era dominated by buyers. This change makes the competitive environment in which enterprises are in become increasingly complex and the market competition becomes increasingly fierce. Due to the change of market environment, the field of management theory is also quietly changing, such as learning organization, virtual management, flexible organization and other new management models. Learning organizations strive to adapt to the changing market environment by constantly updating and improving their own skills; With the help of information technology, virtual management transfers part of the management functions inside the enterprise to the virtual space, realizes the cross-region, cross-time and space management, and improves the management efficiency. Flexible organization emphasizes that enterprises should be as adaptive as organisms, and constantly adjust their organizational structure with changes in the external environment to better adapt to market competition. These new management models provide new ideas and methods for enterprises to win the opportunity in the fierce market competition. In the early 1990s, the business process reengineering (BPR) theory proposed by American management scientists Michael Hammer and James Champy set off a process revolution in the world. The BPR project is a large and comprehensive issue. It involves the process setting and organizational structure of the enterprise, and is also linked to human resource management, IT system application and other links. It is a systematic project. This paper analyzes the background and significance of BPR appearing in the modern economic environment. The concept of BPR is introduced, and the three key principles of BPR (target process, customer research, and technical conditions) are analyzed. By studying the development process of enterprise BPR, the article discusses the BPR scheme of real estate enterprises according to the development status of China's real estate. The article is based on the "6 stages" (strategic conception stage, project initiation stage, analysis and diagnosis stage, process optimization design stage, process organization reengineering stage, and process evaluation and improvement stage) reengineering and optimization ideas. Starting from the business characteristics of the real estate market development department, cost management department, engineering management department, technical management department, and procurement management department, provide standardized and effective real estate enterprise business process management methods and practices to promote the successful implementation and operation of real estate projects.

The impact of continuous tightening policies on China's real estate industry

The impact of continuous tightening policies on China's real estate industry

Measuring China's Real Estate Financial Innovation from the Perspective of Government, Enterprises and the Public: Index Compilation and Its Spatial-Temporal Characteristics Analysis

Measuring China's Real Estate Financial Innovation from the Perspective of Government, Enterprises and the Public: Index Compilation and Its Spatial-Temporal Characteristics Analysis

A Method for Classifying Residential Prices in Apartment Complex Using Computer Simulation Analysis: A Case Study

The price fluctuation of the real estate market has become an important factor affecting the stability of the national macro-economy. In the history of the worldwide financial crisis, there have been many times related to the real estate market. China's real estate industry occupies a pivotal position in the national economy, and entered a rapid development period in 2000, gradually becoming a pillar industry of the national economy. It ushered in the process of rapid expansion, with investment scale, construction scale, transaction scale and transaction price rising. From the perspective of noise and landscape, this paper discusses the possibility of applying landscape analysis to the price and pricing of apartment complexes. The noise, landscape and sunlight are analyzed based on the landscape analysis (including the point and line through the view analysis, and the line of sight analysis) to provide a basis for the unit price classification of the area.

Study on the Impact of Stock Market Performance on REITs Market in China

China's real estate trust business started in 2002, and has experienced four stages: germination, stagnation, pilot operation and practical development. In the financial market, the stock market will directly reflect the macroeconomic factors represented by monetary policy, external financial market, interest rate and exchange rate, and have an impact on REITs through the secondary market. With the development of China's domestic REITs market, to evaluate the risk impact of the REITs market more accurately and form a stable risk early warning and prevention mechanism is quite important. This paper expounds the basic connotation and main characteristics of real estate investment trust, through the TVP-VAR model, analysis of the mainland REITs influenced by the stock market, it is concluded that the domestic stock market responds directly to the domestic and international monetary policy, and through the stock market to REITs market, and the effect time is mainly short-term, but the impact effect is more obvious.

Assessment and Control of Investment Risk in Real Estate Projects

The fast rise of China's real estate business has efficiently propelled the country's economy, and it is also profoundly entwined with the daily lives of the Chinese populace. There are more investment risks associated with real estate projects due to the size of the investment funds, the length of time required to accomplish the task, the effect of regulatory changes, the market climate, and other variables. If these risks are not appropriately managed, they will lower the investment's return. Real estate project investments should be more cautious and scientific, fully assess investment risks, and target the appropriate control measures to reduce the impact of risk factors and ensure the smooth implementation of investment activities. This is particularly crucial in light of the new normal, which involves increased uncertainty.

Prospects of China’s Real Estate Market

The outlook for the expansion of China's real estate business is a popular topic of conversation. In 1980, Comrade Deng Xiaoping recommended that the housing reform should follow the path of commercialization; by 1998, the commercial housing system had been formally implemented. Throughout the past 24 years, China's real estate market has endured periods of prosperity, depression, and crisis. The purpose of this essay was to assess the goods and financial status of key Chinese real estate companies and provide more precise solutions to difficulties. Due to the rapid economic development of China's real estate business, some regions refer to the real estate economy as a bubble economy, and it is crucial to examine the industry's trends and demands. Excessive housing costs, over-development, overwhelmed individuals, and other issues require immediate resolution. In this post, we will give real estate sector proposals based on China's national conditions, including government-guaranteed low-rent housing, affordable housing, etc. Propose a new sort of community to alleviate the strain on the populace and resolve a portion of the subsistence issue. Considering the issue from the standpoint of development, the demand potential for Chinese real estate is enormous, and the development potential is vast.

The Impact of COVID-19 on China's Real Estate Industry and the Outlook for Industry Trends

Contemporarily, the worldwide spread of COVID-19 has had a negative impact on economic activities globally, and the property sector in China has inevitably been affected. This paper focuses on three main areas of analysis: firstly, the impact of COVID-19 on housing transactions, secondly, the impact of COVID-19 on house prices and thirdly, the impact of the COVID-19 outbreak on property supply. According to the analysis, the outbreak definitely has some negative impact on housing transactions, house prices and supply in the Chinese real estate market in the short term. However, the property market in China is currently relatively stable. For China's super tier 1 cities and new tier 1 cities, the real estate market will recover relatively quickly. With regard to the second-tier cities, owing to their own disadvantage of being relatively backward economically, the real estate market will have some difficulty in recovering through their own efforts, i.e., policy support and assistance are required. Overall, these results shed light on guiding policy implementation for real estate industry in China.

Explore the Password of the Current Real Estate Market

In recent years, the heat of the real estate market has decreased, and the price of real estate in a few places has declined slightly, mainly due to the effect of the purchase restriction policy and the slowing down of economic growth. Is it difficult to develop the real estate industry in the future? Will the real estate market be depressed for a long time? For example, some people think that the real estate cannot be sold, and the price must be greatly reduced? I believe that the real estate industry will continue to develop. It is only the subjective desire of some people that the long-term price reduction of real estate will not rise. This desire is neither in the interests of the state nor in the interests of society, nor in line with the laws of the socialist market economy. Based on the comprehensive analysis of various factors, China's real estate industry will continue to develop, the real estate market will be more sound, and the real estate price will definitely not fall all the time, and will certainly "rise steadily".

Household indebtedness, financial frictions and the transmission of monetary policy to consumption: Evidence from China

This paper studies the impact of household indebtedness on the transmission of monetary policy to consumption using the Chinese household-level survey data. We employ a panel smooth transition regression model to investigate the non-linear role of indebtedness. We find that housing-related indebtedness weakens the monetary policy transmission, and this effect is non-linear as there is a much larger counteraction of consumption in response to monetary policy shocks when household indebtedness increases from a low level rather than from a high level. Moreover, the weakened monetary policy transmission from indebtedness is stronger in urban households than in rural households. This can be explained by the investment good characteristic of real estate in China.

How China's Real Estate Investments Are Transforming and Growing Under Pandemic and Restrictive Policies

This study reviews and synthesizes the difficult status of investigating real estate in China. Previous studies have included different aspects of factors that contribute to China's real estate woes, including epidemic effects, market effects, policy effects, and many other aspects. And each factor has played an important role in influencing the current predicament of Chinese real estate. This paper evaluates the epidemic impact, market impact, policy impact, and other factors work together to cause China's current real estate dilemma. The current analysis shows that the combination of these factors has led to a vicious cycle of high debt and low liquidity in Chinese real estate.

The History of China’s Real Estate Market and The Risks It Faces

Today, China's real estate market is facing various crises, and the development of real estate market contributed a lot to the growth of China's economy. Therefore, it is crucial to understand the Chinese real estate market and the problems it faces today. This paper briefly analyzes the history of China's real estate market and positively affirms the contribution of the real estate market to China's economy by analyzing the data. In addition, this paper also analyzes the dangers faced by China's real estate market based on the current market conditions in China and discusses possible solutions. Based on these analyses, this paper suggest that people need to pay more attention to the real estate market and highlights the significance of real estate market to the Chinese economy.

Dynamics and Driving Mechanism of Real Estate in China’s Small Cities: A Case Study of Gansu Province

(1) Background: China is beginning to see increasingly complex real estate development dynamics as urbanization, industrialization and globalization advance. As a key driver of economic and social development in China’s cities, real estate has created prosperity while facing the risk of capitalization and a “hard landing”, making it increasingly difficult to bring it under control. (2) Methods: a new approach that integrates “evolution dynamics–driving mechanism–policy design” is constructed based on the Boston Consulting Group matrix, exploratory spatial data analysis, GIS and Geodetector, and this paper empirically studies the dynamics and driving mechanism of real estate development based on the case study of small county-level cities in Gansu, China. (3) Results: Firstly, real estate development in Gansu is characterized by significant spatial differentiation, heterogeneity and autocorrelation, and its distribution pattern comes into being from unsynchronized macroeconomic, population, social, industrial, institutional and policy development interweaved with the real estate control. Secondly, the real estate is diversified in spatiotemporal evolution models, and the cold and hot cities of different models are in quite different geographical patterns with high spatial agglomeration. Thirdly, there are many driving factors affecting the distribution patterns in real estate. These factors are in complex relationships and they are classified into three categories of “Scale–Contribution–Comprehensive”-oriented driving factor and three sub-categories of “Key–Important–Auxiliary” factors. Fourthly, the factors show large differences in the interaction effects, with the real estate industry scale influencing factors being dominated by bifactor enhancement and the economic contribution influencing factors being dominated by non-linear enhancement. Notably, factors such as permanent resident population, urbanization and government revenue have a strong direct influence on the industry scale and economic contribution of real estate, and factors such as expenditure, output value of industry, urbanization rate and number of secondary schools all have a strong interactive influence. (4) Conclusions: The cities are divided into four policy areas of comprehensive development, contribution improvement, scale growth and free decision. Furthermore, differentiated and adaptive measures are proposed for each zoning, which significantly improves the accuracy and synergy of urban real estate management.