Government Under The Chinese Real Estate Market Theory And Empirical Research

Along with the reform and opening moving on, Chinese Real Estate industry experienced the history changing from planned economy (Housing distribution system) to Market economy. The real estate industry started from nothing, from weak to strong, from lack of standardization to grow gradually perfect rapidly. In shortly 30 years, real estate industry growed as a pillar industry of national economy, and its steady growth has already become a key influencing factor of national economy sustainable development. Mean while, recently, Housing Problems become to the essential problem of national intrest and people' s livehood.This article is based on the view of industrial economy, starts from classical theory SCP paradigm, combines efficient competition and market efficiency theory, discusses the efficiency of Chinese Real Estate Market. During research, this article finds out that SCP paradigm, efficient competition and market efficiency theory can not explain Chinese real estate industry' s problems. Because during the development process, especially the beginning of breed and fromation, the government played predominantly, evenly we can say that Chinese government generated Chinese real estate industry, which is wholely different with western real estate industry in nature. Moreover, even at the present stage of Chinese real estate industry, we definitely should not ignore the impact of visible hand, government policies. Therefore, owing to the Chinese real estate market grows under double action of the government power and market power, the impact of government policy must be considered in the research of Chinese real estate market' s efficiency. Because of reasons above, this article established the G-SCP-E analysis framework, analized market structure, market conduct and market performance under the lead of G, then offered a postive policy suggestion on Chinese real estate industry efficiency.This article points out that during the Chinese real estate industry emergence and development process, there are two aspects reflect government's influence on market efficiency:On one hand, the influence on market fundamental elements-supply and demand. Government policy for adjustment generates great impact on the expect of consumer market, frequently leads to a rapid shrink of sales volume, causes the demand carve move widely towards right or left periodically. Government' s land supply system, policy for adjustment and land supply behaviour, controls the amount, supply pace, and supply' s periodical change, causes to the movement of supply carve. Those causes are rational, but frequent adjustment will mess up market regular expection, then cause rapidl change of supply and demand.On the other hand, the influence on market structure, market conduct and market performance: due to the compelet monoply on primary land market, government can decide real estate market structure, which can be any type structure. Recently primary land supply system and government supply behavior makes the real estate market to a monopolistic competition structure. The double enter barriers of land obtain and finance influences market structure, the quantity and quality of company which want to enter the market; the influence on market behavior: government land supply system and enter barrier partly decides the quantity and quality of companies which has already exsited in this market and want to enter this market, affects the direct of enterprises competition behavior, made enterprises put more attentions on dealing relationships with government and financing abilities, consequencely ignore the cultivate on market competitiveness. The monoply profit comes from differences between supply and demand lower the advance power for enterprises to improve market competitiveness, leads to a less drastic competition environment. Product difference competition and brand competition grows slowly. The influence on market performance: low level competition and high level monoply profit cause the loss of social welfare. Low level of research investment, slow growth of technology, low level of industrialization, enterprises' management skills, unapparently economy scales, influence the pace of interregional expansion and commmercial real estate industry.On the basis of research results above, this article indicates that the core problem for Chinese real estate industry growth is to improve the market efficiency. It can be done through three ways: firstly, government increase supply to defuse the conflict between supply and demand. On one hand, reasonable plan the utility of land, prohibit real estate enterprises from hoard land, increase the develop pace, in order to increase the supply efficiently. On the other hand, put more effort on low-rent house construction, perfect housing gurantte system, decrease tax, increase the house circulation ability; Secondly, break regional monoply, expedite effective competition; Thirdly, adjust development level, pay more attention on growth quality.