The Interests Of The Chinese Real Estate Market, The Main Conflicts And Coordination Mechanism

Over the past thirty years since the introduction of reform and opening-up, with the historic changes of social economy, China's housing reform has been exploring the way forward. From the theoretic discussion on housing commercialization in 1978, such new concepts and things as commercial residential building, real estate developer, real estate industry and real estate market have gradually entered the lives of the people. Real estate industry nowadays has become the pillar of national economy, and the real estate market has turned into the focus to which both central government and common people pay attention.However, with the rapid growth of real estate industry, China's real estate market has faced many problems in the last few years, house price irrationally continuing rising, ratio of house price to income in some cities reaching up to 20:1 and quite a few of urban residents leading a life of "home mortgage slave". Since 2008, confronted with the global financial crisis consequent upon the "subprime crisis" that broke out in United States, Chinese government has set forth the target of "maintaining growth and ensuring social stability". Real estate sectors turned to be the biggest beneficiary in taking on the heavy responsibility of "maintaining growth". While led to unprecedented progress, real estate industry reveals quite deep-seated problems, such as inflated house price, unbalanced market structure and market disorder. In-depth analysis on these problems uncovers that there are many stakeholders in real estate market, including central government, local government, real estate developers, house purchasers, financial enterprises, investors and speculators and so on, who have intricate interest contradictions between each other. Of these numerous contradictions, the one between local government and real estate developers constitutes the principal contradiction that enables the current real estate market to attain sustainable, sound and stable growth. Based on the methods of thematic analysis, interest analysis and contradiction analysis, introducing demand-supply theory, rational expectations theory, theory of games, public choice theory, social welfare theory in economics, comprehensively applying quantitative and qualitative research and combining historical analysis, analysis of existing situations and spatial analysis, this paper makes an in-depth study on China's real estate market from the theory and demonstration, making definition and analysis on the contradiction system of the stakeholders and setting forth the target, principle and strategy to reconcile the contradictions among the stakeholders of real estate market.The main contents of the paper fall into five parts.The introduction mainly describes the background of the choice item, the intent and meaning of the item, the current situation of research at home and aboard, research methods and major contents, innovation and deficiency. Chapter one mainly describes the important place and role of China real estate in national economy, introduces basic concepts and characteristics of real estate and its market, review the development course of China's real estate market and looks into the development trend of real estate market. It is the leader to the later chapters. Chapter two defines the stakeholders of China real estate market (central government, local government, real estate developers, house purchasers, financial enterprises and interested persons of real estate market) and analyzes their behavioral objectives and manners. By the behavioral analysis on single stakeholder, this chapter is to determine the contradictions among the stakeholders of real estate market for the later chapters and make preparations for defining principal contradiction and secondary contradiction. Chapter three will present a systematic summary for the contradiction system of the stakeholder of China real estate market, setting forth that the contradiction between local government and developers is the principal one in the contradiction system, and local government is the principal aspect of the principal contradiction. This chapter will proceed further to analyze the secondary contradiction among stakeholders (contradictions between central government and local government, between real estate developers and house purchasers, between local government and financial enterprises, between real estate developers and financial enterprises, and between financial enterprises and house purchasers) and make a concrete analysis of the interaction of the principal and secondary contradictions. Chapter four puts forward to build a system to coordinate the contradiction among the stakeholders of China's real estate market, and establish a coordination system of real estate market on the basis of market mechanism and macroeconomic control according to the goal and principle to reconcile contradictions. This chapter also comes up with major strategies to coordinate contradictions in the following five aspects of building real estate market system led by central government, establishing a developmental pattern of real estate industry dominated by the market and assisted by plans, formulating and improving laws, regulations and systems regarding real estate market, completing China's real estate market system and rectifying market order.On innovation, referring to selection of topic, this thesis selects Chinese real estate market problems, which is short of system-theoretic study, attaches importance to the theoretical research of objective demand and modes of conduct of stakeholders and advocates solving Chinese real estate market problems through coordinating interests of all parties. As to research approach, this thesis makes an integrated utilization of subject, profit and contradiction analytical methods to deeply study the operating characteristics and rules of Chinese real estate market. Then on defining the root of Chinese real estate market, this thesis, at a unique angle, takes that the principal contradictions lie in local governments and real estate developers and the local governments are the principal aspect of contradiction. And finally on resolving of contradiction, this thesis systematically puts forward the countermeasure for Chinese real estate market based on the coordination of stakeholders of all parties and especially attaches importance to the resolving of principal contradiction by central government authority.In theoretical sense, this thesis analyzes the behaviors of stakeholders in Chinese real estate market and their inter-subjective contradiction in virtue of the methods of thematic analysis, interest analysis and contradiction analysis,, establishes a theoretical frame of studying the stakeholder contradiction system in Chinese real estate market, defines principal and secondary contradictions, illuminates the interference and interaction of principal and secondary contradictions and analyzes the deep-level problems existing in Chinese real estate market, which provides a brand new view for the study of Chinese real estate market and enrich and perfect the market economic theory of real estate.In practical sense, firstly, this thesis intends to fundamentally solve the existing problems in Chinese real estate market, covering the inflated price of real estate, imbalance of market structure and disorder of market, through establishing a coordination mechanism of contradiction for real estate. It also attempts to set up the objectives and principals of contradiction coordination and put forward targeted countermeasures based on the initially-shaped mechanism to embody its great application value. Then, since Chinese real estate market is important part indispensable to socialist market system, the long term potential of real estate in China will be huge and broad with Chinese urbanization and modernization drive. And the potential demand is so great and unique in the world that dwelling construction has become a new growth point to drive Chinese economic development. Therefore, the status of development in real estate shares weal and woe with the national economic development, whose sound progress is of great importance to the continual and steady development of national economy. The sound, health and steady progress of Chinese real estate market are exactly the ultimate goal that this thesis tries hard to realize.