The Harmonious Development Study On Real Estate Market And Urban Economy

Since Reforming and Opening up, Chinese real-estate industry has made great achievements. The real-estate market system has been established gradually. However, the contradiction between "over supply" and "insufficient effective demand" has been existing all the time in the Chinese real -estate market because of relatively low economic level and imperfect growth of the market. Since 1990s, the urban real-estate market has experienced fluctuation many times. A conclusion drawn from the dispute against the situation and the trend of Chinese real-estate market is that a lot of problems still have to be further researched and solved in the process of the real-estate market development.However, in China right now, the overall academic research in the regular operating pattern of real-estate market seems scrappy. No systematical and general theory frame can be applied. The research in the context of social or economic development of city is especially weak. Furthermore, the economics analysis of the real-estate market in space dimensionality has been ignored. The discussions on the problems of structure balance such as how to realize optimized configuration through mutual expansion and contraction among the factors of real-estate market are insufficient. In view of all above, combining the development of the real estate market with the operation of urban economy, this paper tries to find out the regularity of harmonious development between them in time and space dimensionality and hopes it will be helpful for future development of real-estate market and establishment of development strategy.Based on the summary of the existing researches on the real-estate market and urban economy, this paper, by means of concentrating on gross quantity, structure and layout in the dimension of time and space, reveals the relevance between the real-estate market and urban economy. It attempts to create an integrated theoretical system which can reflect the interaction between real-estate market and urban economy, and then sets up a general theory frame for their harmonious development. Lastly, taking some cities as samples, the operating rules, the development trend and the mode of urban real-estate market in a certain period of time are discussed. Moreover, the tactics to deals with them are provided.The general quantity balance means that the development of real-estate market, the GDP, the population and the living standard should keep rational proportional relationship, and the total supply and demand in the real-estate market should be balanced. This paper addresses an in-depth study on the general quantity balance in two aspects, one is the scale and rising speed of real- estate investment, and the other is the price of the real-estate which keeps balanced relationship to the urban economy. Through the explanation and illustration of the interaction between real-estate investment and urban economy, this paper shows that the growth and fluctuation of real-estate investment has great influence on urban economy, whereas, urban economy regulates the growth of the real-estate investment by means of long run equilibrium. From the relationship between real-estate investment and urban agglomeration effect, this paper still quantitatively investigates the effect of urban scale or degree of urban agglomeration on the investment. And a conclusion is drawn that the real estate investment in metropolitan areas relies on the capacity that the city gathers the population.The most crucial factor which reflects the harmonious development of general quantity is the price of real estate. Based on the theory of housing price, this paper, viewing from basic urban economical elements and the factors which influence the supply and demand tendency in commercial housing, detailedly analyses the factors and variables which affect China's housing price. Moreover, it also carries on practical research on the relationship between housing price and urban economy, and proves that per capita disposable income of urban residents, people's expectations and GDP notably influence the housing price. As a whole, Chinese macroeconomics growth can explain the growth of urban housing price. The paper still discusses the theory studies and the real condition of housing price to income ratio.Corresponding to the general quantity balance, the structure balance of real estate market is also one of the demands for the harmonious development of real estate market and urban economy. However,in recent years, mainly due to non-balanced structure, the contradiction of large housing vacancy and insufficient effective supply appears all the time in the whole country or some areas. After analyzing the investment structure, supply and demand structure of all kinds of real estate in Wuhan, this paper reveals that there is a certain degree of non-balance in real estate structure. Though the analysis of the structure balance of market hierarchy and the studies of structure mode of increment market and stock-in-trade market, the paper still concludes that it is especially serious that Chinese increment housing market and stock-in-trade housing market have unevenly developed and the market hierarchy of real estate has to be modulated.Spatial layout of urban real estate is essentially a choice on the location of different kinds of real estate goods. Finally general quantity balance and structure balance will be realized through the balance of spatial layout or location. Thus, spatial layout is the key element to promote the harmonious development between real-estate market and urban economy. Based on the studies of the evolution rule and mechanism of spatial layout and combined with enormous changes of urban spatial layout since China's opening, this paper demonstrates new modes on the spatial layout of real- estate market, that is, housing suburbanization and the adjustment in urban internal spatial structure of real-estate market, and discusses the drive mechanism for forming the market pattern. Takes Wuhan as an example, this paper analyses the restructure of spatial layout with the operating of urban economy in the past 20 years and the spatial difference in real estate price resulting from the change of spatial structure, and also gives proposals to deal with the problems appearing in the developing process.Based on above researches, the goal of macro-control to promote the harmonious development of real- estate market and urban economy is put forward in this paper, which is to keep the coordination of the market scale and the amount of urban economy, promote the optimization of the market structure and guide reasonable spatial layout.