Premium Essay

China's Real Estate Market

In: Business and Management

Submitted By MonCherry
Words 3453
Pages 14
Index of Contents 1. Definition Real Estate 2 2. Chinese real estate market 2 2.1 overwiev about the chinese real estate market
 2 2.2 chinese real estate market
in the broader economic context 3 3. China’s long-term Real Estate Fundamentals 4 3.1 strong gdp growth 4 3.2 rural migration to cities
 4 3.3 rising middle class and strong upgrade demand 5 3.4 300 million new households in past two decades 6 3.5 limited land supply 6 4. overheating real estate market in the short-term 6 5. government steps in with tough real estate policies 9 5.1 significant increase in land supply and focus on economic housing 9 5.2 downpayment ratios and mortgage rates 9 5.3 Loan restrictions to developers 10 6. summary 10 References 11

1. Definition Real Estate

A piece of land, including the air above it and the ground below it, and any buildings or structures on it. Real estate can include business and/or residential properties, and are generally sold either by a relator or directly by the individual who owns the property. In most situations in the United States, real estate is a legal designation, and is subject to legislation. Also called realty.

2. Chinese Real Estate Market

2.1 Overview about the Chinese Real Estate Market

Global market volatility over the course of 2011 has pushed China's real estate market to the fore, with one commentator recently noting in the Wall Street Journal magazine "in terms of its…...

Similar Documents

Premium Essay

Dubai Real Estate Market

...Dubai Real Estate Market- Steeper the growth faster the decline I still remember the difficulties I faced in finding a house for rent in Sharjah (one of the Emirates of UAE and a neighbouring city of Dubai) in 2007. The rent prices were shooting every day and real estate agents were ecstatic to tell this news to the tenants. I was really contemplating my decision to move to a place where cost of living was rising every day. When I saw Dubai first time, I was really amazed by the development of the city. It takes a lot of Will power to develop a city like Dubai in desert. The plan of action for development of Dubai was to initially invest in its infrastructure and set a platform for further investment. Dubai has given favourable business condition including tax free environment to invite foreign investment and foster its growth. From 2002 to 2008 the demand for real estate increased because of growth in per capita income, increase in foreign investment, easier availability of credit from bank and on a perception that price of unit will rise further seeing the past trend. These factors shifted the demand curve of Real estate to the right. During the same period, supply was inelastic until increase in number of suppliers into the market and ease of capital availability for construction projects. Nevertheless increase in supply never matched the increase in demand and supply shortage further boosted the price. At each price there were enough buyers available in the market and......

Words: 507 - Pages: 3

Premium Essay

Real Estate

...Progress in Planning 64 (2005) 69–175 www.elsevier.com/locate/pplann Global city making in Singapore: a real estate perspective Sun Sheng Han Department of Real Estate, School of Design and Environment, National University of Singapore, 4 Architecture Drive, Singapore, Singapore 117566 CHAPTER 1 Introduction ‘Global city’ is a notion popularly cited among planning academics and practitioners in describing some strategic places in the world economy. Pioneer researchers in this area define global cities as basing points of capital in a world economy (Friedmann, 1986: 71); production centres of specialized information services such as financial services, media services, educational and health services, and centres of tourism (Hall, 1998: 24); and centres for servicing and financing international trade, investment and headquarters operations (Sassen, 2004: 171). Summarizing those perspectives and recognizing the influence of a new economy, which can be characterized as informational, global and networked (Castells, 2000: 27), global cities can be seen as the urban nodes where globalization materializes so that they are (1) highly concentrated command points in the organization of the world economy; (2) key locations for finance and specialized service firms; (3) sites of production of innovation; (4) markets for the products and innovations produced (Sassen, 2001: 3 and 4). Taylor (2004) has argued that these perspectives involve understanding just the attributes of cities and...

Words: 47333 - Pages: 190

Premium Essay

Real Estate

...ANALYSIS OF REAL ESTATE SECTOR IN INDIA REPORT SUBMITTED TO Dr. Dennis Raj Kumar Submitted by (GROUP-9) Lavanya Sriharshini Vinod Varun Ashok P Manju harsha Pramit CONTENTS CHAPTER NO. | CHAPTER NAME | PAGE NO. | | ABSTRACT | 3 | 1 | INTRODUCTION | 4 | 2 | MARKET STRUCTURE | 6 | 3 | ANALYSIS OF INDIAN REAL ESTATE IN HOUSING SECTOR | 11 | 4 | PRICING STRATEGIES | 16 | 5 | ADVERTISING STRATEGIES | 19 | 6 | FINANCIAL ANALYSIS OF INDIAN REAL ESTATE COMPANIES | 21 | 7 | FUTURE OUTLOOK OF REAL ESTATE | 32 | | CONCLUSION | 35 | | REFERENCES | 36 | ABSTRACT EXECUTIVE SUMMARY: Real estate sector in India is assumed greater heights with the labor migration, liberalization of economy which led to raise for commercial and housing space.2012 was very sluggish year in terms of growth where GDP contribution of real estate declined from 10.6% to 6.5% due to raise in input cost, high lending rates which impacted sales as a result of inflation. Real estate sector is described as cyclic moments in terms of price over a period of time which caused fluctuations in commercial and residential markets. This resulted in change in economic policies of Indian market environment. The change in macro-economic factors such as GDP, employment rate, population growth, House hold disposal income, stock market values, Price to income ratio, Net rental yield, Household debt service ratio, interest rate / mortgage rate, demand......

Words: 8860 - Pages: 36

Premium Essay

China’s House Price: Affected by Economic Fundamentals or Real Estate Policy?

...ARTICLE Huayi Yu China’s House Price: Affected by Economic Fundamentals or Real Estate Policy? © Higher Education Press and Springer-Verlag 2010 Abstract Many theory and empirical literature conclude that house price can reflect economic fundamentals in the long-term. However, by using China’s panel data of 35 main cities stretching from 1998 to 2007, we find that there is no stable relationship between house price and economic fundamentals. House price has deviated upward from the economic fundamentals since government started macro-control of the real estate market. We consider that the mechanism between the house price and economic fundamentals is distorted by China’s real estate policy, especially its land policy. Meanwhile the policy itself is an important factor in explaining the changes of China’s house price. Then we estimate the dynamic panel data model on house price and the variables which are controlled by real estate policy. The result shows: land supply has negative effects on house price; financial mortgages for real estate have positive effects on house price; and the area of housing sold and the area of vacant housing, which reflects the supply and demand of the housing market, has negative effects on house price. We also find some differences in house price influence factor between eastern and mid-western cities. Finally, we propose policy suggestions according to the empirical results. Keywords house price, economic fundamental, real estate......

Words: 11366 - Pages: 46

Premium Essay

Real Estate

...COMPETITION COMMISSION OF INDIA A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE INTERNSHIP REPORT DECEMBER 2012 SUBMITTED BY: Kirti Dashora, IV Year, Gujarat National Law University (GNLU), Gandhinagar A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE ACKNOWLEDGEMENTS The successful completion of this project could not have been completed without the valuable guidance and insights of many people. I would like to thank Mr. Yogender Chaudhary, Adviser (Law) for guiding me throughout my internship period. I would also like to thank Ms. Bhawna Gulati, Deputy Director (Law) for providing me helpful suggestions regarding the project. I also thank all the officers in the Commission who provided knowledge of the working of the Commission during the rotation exercise. The library staff also provided help whenever it was required. Page 2 A REVIEW OF THE COMPETITION ISSUES IN THE REAL ESTATE SECTOR: AN ANALYSIS OF THE POSITION POST DLF CASE TABLE OF CONTENTS ABSTRACT…………………………………………………………………………………5 OVERVIEW OF THE REAL ESTATE SECTOR IN INDIA…………………………..….6 Regulation of the Sector………………………………………………………..……7 The Real Estate (Regulation and Development) Bill, 2011………………………....7 ABUSE OF DOMINANCE IN THE REAL ESTATE SECTOR……………………..……9 Relevant Market…………………………………………………………………..…9 Assessment of dominance………………………………………………………..….9 Abuse of......

Words: 10071 - Pages: 41

Premium Essay

Real Estate

...Relationship between Real Estate and Financial Sectors in Dubai Economy Dr. Eisa Abdelgalil Data Management and Research Department Table of Contents Table of Contents............................................................................................................i ‫......................................................................................................................ﻣﻠﺨﺺ ﺗﻨﻔﻴﺬي‬ii Executive Summary ..................................................................................................... iii 1. Introduction................................................................................................................1 1.1 Background ..........................................................................................................1 1.2 Objective ..............................................................................................................1 1.3 Research questions...............................................................................................1 1.4 Methodology and data..........................................................................................2 1.5 Outline of the study..............................................................................................2 2. Dynamic of Real Estate Market.................................................................................3 3. Impact of Real Estate on Financial Institutions ........................................................

Words: 6149 - Pages: 25

Premium Essay

Real Estate Market in New Zealand

...The real estate market in New Zealand has been showing signs of major growth in recent times. Major cities such as Auckland and Christchurch have been major contributors to this boom. In these two cities real estate prices have seen a major rise. In Auckland, the real estate prices have increased by approximately 17 percent. In Christchurch real estate prices have also been on the increase significantly though not as high as Auckland. Christchurch has seen a rise in housing prices by 8 percent over the last 12 months. Both of these two cities are major players in the New Zealand real estate market. When combined, both cities represent about half of all the real estate sales for New Zealand. There seems to be no end in sight for this real estate explosion. In fact, even in the face of the introduction of limits on Reserve Bank mortgage loans the real estate market has shown no significant signs of slowing down. Housing prices have continued to increase consistently since March. This is purported in the findings of leading real estate firm Barfoot and Thompson. For September, the median sales price for a home was $600,000. This highlights an improvement of $38,500 more than the previous month. Interestingly, the average cost for a home in the month of September was $657,912. This represents growth of approximately a little over $10,000. This recent real estate boom means that it would be an extremely fruitful endeavor for anyone wanting to enter real estate as a career.......

Words: 634 - Pages: 3

Free Essay

China's Real Estate Bubble

...China’s Real Estate Bubble China has been nothing short of a financial miracle. In just 30 years, this state-controlled economy became the world’s second largest, deftly managed by government policies and decrees. But one of the biggest concerns is the real estate and construction that may have created the largest housing bubble in human history. If you go to China, it’s easy to see why people concerned about this problem. Many place in China are building new apartments and houses right now. But nobody is living inside, many cities are just like ghost city, Why are they empty? They have actually been sold, but most of them are sold to those investors. Owned by people in China’s emerging middle class, who now have enough money to invest but few ways to do it. They’re not allowed to invest abroad, banks offer paltry returns, and the stock market is a rollercoaster. 15 years ago, the government changed their policy and allowed people to buy their own homes and the floodgates opened. People believed that their property price would always go up by more than inflation. Actually, property values have doubled and tripled and more. So people in the middle class have sunk every last penny into buying five, even ten apartments, fueling a building bonanza unprecedented in human history. No nation has ever built so much so fast. As we know, the growth of GDP is very important to a country, and one of the biggest facts inside the GDP is the real estate. Real estate has become the......

Words: 609 - Pages: 3

Premium Essay

Cadim: the China and India Real Estate Market Entry Decisions

...Cadim: The China and India Real Estate Market Entry Decisions I. INTRODUCTION Cadim is a real estate division of Caisse de Depot et Placement du Quebec (Caisse), Canada’s largest pension fund management firm. Caisse is the largest institutional investor in Canada, overseeing more than $245 billion in assets and carrying out more than $12 billion in transactions daily. Cadim is one of Caisse’s three real estate divisions comprising around 6.23% of Caisses portfolio ($15.3 billion). Cadim focuses on residential and hotel markets, while the other two real estate arms focus primarily on shopping malls and business. Currently Richard Dansereau, Cadim’s Chief Operating Officer is in the process of deciding whether or not to move in to the India and China real estate markets. This case study will review the key issues, the general environment of India and China, Cadim SWOT, alternatives to moving into India and China and will conclude with our recommended course of action. II. KEY ISSUES Richard Dansereau, Cadim’s Chief Operating Officer has been tasked with making the final decision whether to enter real estate markets in India and China. Cadim has been forced to look toward external markets due to the average risk- adjusted return of real estate in their current markers, North America, averaging considerably below Cadim’s internal required return......

Words: 1597 - Pages: 7

Premium Essay

Real Estate

...Chapter 13 key terms: Armin Hadziomerovic Acceleration Clause- A contract provision that allows a lender to require a borrower to repay all or part of an outstanding loan if certain requirements are not met. Ad Valorem Taxes-is a tax based on the value of real estate or personal property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT). Assessment-the evaluation or estimation of the nature, quality, or ability of someone or something. Assignment of Rents Clause- is a provision in a deed of trust or mortgage. Bearer- a person who presents a check or other order to pay money. Bona Fide Purchaser for Value- referred to more completely as a bona fide purchaser for value without notice – is a term used in the law of real property and personal property to refer to an innocent party who purchases property without notice of any other party's claim to the title of that property. Broker Lien- a right to property or payment that a broker has if the buyer does not pay the money owed to the broker for a sale: Collateral- something pledged as security for repayment of a loan, to be forfeited in the event of a default. Contractor- a person or company that undertakes a contract to provide materials or labor to perform a service or do a job. Default Clause- a failure to act, esp. a failure to meet a financial obligation or to appear in a court of law at a time specified Deficiency Judgment- is an unsecured money......

Words: 1857 - Pages: 8

Premium Essay

Real Estate Capital Markets

... Real Estate Capital Markets –MBA 2015 Homework Assignments #2 I_TBI | I_GB | I_SP500 | 2.6% | 1.7% | 1.8% | * סטטיסטיקה 1. מצורף נספח עם חישוב תשואות רבעונית. 2. ממוצע: I_TBI | I_GB | I_SP500 | 5.7% | 2.3% | 7.5% | 3. סטית תקן:   | I_TBI | I_GB | I_SP500 | I_TBI | 0.33% | 0.01% | 0.06% | I_GB | 0.01% | 0.05% | -0.04% | I_SP500 | 0.06% | -0.04% | 0.56% | 4. מטריצת var-cov: 5. מטריצת קורלציות:   | I_TBI | I_GB | I_SP500 | I_TBI | 1 | 0.10 | 0.14 | I_GB | 0.10 | 1 | -0.21 | I_SP500 | 0.14 | -0.21 | 1 | * חזית היעילות מניות ואג"ח בלבד: סטית תקן תיק | ממוצע תיק | אחוזי החזקה | 7.47 | 1.80 | Ws= | 100% | Wgb= | 0% | 6.68 | 1.78 | Ws= | 90% | Wgb= | 10% | 5.89 | 1.77 | Ws= | 80% | Wgb= | 20% | 5.12 | 1.75 | Ws= | 70% | Wgb= | 30% | 4.38 | 1.74 | Ws= | 60% | Wgb= | 40% | 3.66 | 1.73 | Ws= | 50% | Wgb= | 50% | 3.01 | 1.71 | Ws= | 40% | Wgb= | 60% | 2.47 | 1.70 | Ws= | 30% | Wgb= | 70% | 2.11 | 1.68 | Ws= | 20% | Wgb= | 80% | 2.06 | 1.67 | Ws= | 10% | Wgb= | 90% | 2.32 | 1.65 | Ws= | 0% | Wgb= | 100% | * חזית היעילות מניות ונדלן בלבד: סטית תקן תיק | ממוצע תיק | אחוזי החזקה | 5.72 | 2.64 | Ws= | 0% | Wtb= | 100% | 5.30 | 2.55 | Ws= | 10% | Wtb= | 90% | 5.01 | 2.47 | Ws= | 20% | Wtb= | 80% | ...

Words: 779 - Pages: 4

Premium Essay

Real Estate

...CHAPTER 1 THE NATURE OF REAL ESTATE AND REAL ESTATE MARKETS ------------------------------------------------- Test Problems 1. A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: b. User market 2. The market in which required rates of return on available investment opportunities are determined is referred to as the: d. Capital market 3. The actions of local, state, and federal governments affect real estate values d. All of the above 4. Approximately what portion of U.S. households own their own home? b. Approximately two-thirds 5. Of the following asset categories, which class has the greatest aggregate market value? d. Nongovernment real estate 6. Storm water drainage systems are best described as: b. Improvements to the land 7. What is the single largest asset category, in terms of value, in the portfolio of the typical U.S. household? a. Housing 8. Real estate markets differ from other asset classes by having all of the following characteristics except: d. Homogeneous product 9. Which of the following is not important to the location of commercial properties? c. Access to schools 10. Which of the following attributes of a home are the most difficult to observe and value? c. location attributes ------------------------------------------------- Study Questions 1. The term real estate can be used in three fundamental ways. List......

Words: 13860 - Pages: 56

Premium Essay

Chinese Real Estate Market

...China Real Estate Market Cools Down The article “China Real Estate Market Slumps In Early September” I found on capitalvue.com briefly describes in early September, housing price of some metropolitans, especially Shanghai, Beijing has declined sharply and the units have been traded declined significantly as well. For instance, new home transaction in the first 12-day period in Beijing in September is only 135 units, which is the lowest number since February. This current situation is really surprising and confusing by contrasting to high transaction price and units in the past year. The reason why I choose China real estate market rather than state of Washington is because I am from China, and as I graduate in the future, those metropolitans might be where I start my new career and life. As a finance major student, Shanghai and Beijing are two economic centers of China, so these places are my dream places to work and live. It is necessary for me to do research on real estate research on these cities. According to this report, the main factors that cause this slump are the demand of new homes in these cities went down, while price level kept still. From chapter 14 of our textbook, the demand curve is downward sloping that indicates that decreasing demand leads to increased prices. In other words, people desire fewer houses at higher price than at lower prices. In the basic supply and demand model, once the demand curve is shifted to the left because of some reasons, such...

Words: 1150 - Pages: 5

Premium Essay

Real Estate

...TRAINING REPORT ON “Growth of Real Estate Sector with in 5years” A case of Corporate Real Estate Solutions Submitted to MAHARSHI DAYANAD UNIVERSITY, ROHTAK In partial fulfillment of the requirements For the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (II SEMESTER) Submitted by: Name: Alok Kumar Upadhayay Regn. No. Roll.No. DAV INSTITUTE OF MANAGEMENT (ELC CODE: 080923013) NH-3, NIT, FARIDABAD. JULY 2011 DECLARATION I hereby declare that the Training Report conducted at Corporate Real Estate Solutions,Delhi. Under the guidance of (Ms. Aakrity) Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK is my original work and the same has not been submitted for the award of any other Degree /diploma /fellowship or other similar titles or prizes. Place: Date: Alok Kumar Upadhayay Regn.No: Roll No. 2 ACKNOWLEDGEMENT First and foremost, I extend my deepest thanks to my mentor and guide Mr. Vishal Srivastava, Director – Corporate Real Estate Solutions, for giving me this opportunity to work in such a prestigious organization as well as for giving me a wonderful thesis. Without his constant guidance and feedback, I would have never been able to complete the training, I did. I am thankful to Ms. Aakrity, whose consistent support and cooperation showed the way towards the successful completion of the......

Words: 15995 - Pages: 64

Premium Essay

Real Estate

...subject area i.e. the impact of middle class on the real estate sector. The chapter links to the Research Objectives and contains secondary analysis and descriptions, which may provide a platform for later evaluation. According to a research by Deutsche Bank, World Bank, McKinsey and CNN- IBN(Sources should be with year example So Deutsche Bank,(Year) ), the total Indian middle class ranges from 300 million to approximately 360 million people; this comprises less than 30 percent of the total population of 1.2 billion (Please refer Chart 1 below). For multi-national corporations and domestic real estate companies, the middle class in India thus presents significant business opportunities. Over the last several years, the overall growth in the real estate sector has burgeoned and this explosion is primarily due to the aspirations of the lower middle, middle and upper middle class of India. Apart from this a whole new range of investment options in the real estate sector has increasingly gaining acceptance. However, keeping in mind the exposure and increasing needs and desires of the middle class, not many significant efforts have been made towards educating the masses. Dire improvements are needed to match the needs of the growing middle class and educate the masses about the real estate sector, which primarily is an unorganized sector. In order to ensure that the growing middle class integrates and understands well about the real estate, the right education has to be on......

Words: 3235 - Pages: 13