The Relationship Analyse Between Real Estate Industry And Economic Development

To understand the right relationship between Real estate industry and economic development, this article bases the study on the relationship between real estate industry and regional economic development, then start from this proposition, discusses these three aspects as follows:First, this article discusses the orientation of real estate industry and regional economic development and the relationship between them. On one hand, the real estate industry is absolutely a basic industry for regional economic development, and might be leading industry or pillar industry of regional economic development. On the other hand, regional economic development provides external environmental conditions for development of the real estate industry, provides foundation function support through the impact of the real estate industry elements market development. The relationship between regional economic development and the real estate industry is a Whole-Part relationshipSecond, this article discusses the relations and mutual effect between real estate industry and regional economic development. On one hand, the real estate industry has Multiplier effect on regional economy through Correlation effect, this Multiplier effect is necessary condition for the real estate industry becoming the leading industry, but not sufficient condition; therefore, the real estate industry can be leading industry, rather than will become absolute leading industries. On the other hand, regional economic development provides foundation function support for the real estate development. Using Four-quadrant Model, this article analyze Logic and Relationship of the "Regional Economic Development→increasing capita disposable income and enhance the level of urbanization and more→produce more demand of real estate market,→have impact on real estate development and investment ", this reflects the mechanism of a regional economic having impact on the real estate industry.Third, this article discusses the amount relationship of the real estate industry and regional economic development performance. Inverted-U Curve relationship is reflection of numeric relationship of real estate industry's absolute positioning as basic industry, relative positioning as leading industry, current interpretation of inverted-U Curve are analyzed from the perspective of the conventional and unconventional factor of real estate development.This article explains the forming of inverted-U Curve using Maslow-Need-hierarchy Theory and Unbalanced Development Theory of Development Economics. Through the inverted-U Curve analysis, this article analyzes inverted-U Curse relationship of the real estate industry and our country's GDP, draw a conclusion that our real estate industry lies in later part of inverted-U Curve ascent stage.At present, local governments do not work hard enough in the implementation of the central macro-control policy as they have not recognized the right relationship between real estate industry and regional economic development, which results in great reduction of the effect of central policies. Therefore, this article brings up some advices and suggestions on how to improve the macro control mechanism in the real estate industry.