Research For Development Of Real Estate In Xiamen

The Chinese real estate industry (RSI) has witnessed a great stride since the 1990s'. But some difficult problems also have arisen in the progress. Under such background, the development of RSI in Xiamen, a tiny island city in the southeast coastal area of China, met such problems as big rise in real estate prices, imbalance of progress between the inside and outside of the city and shortage of capable developers. These problems set a great hindrance for the further progress of RSI in Xiamen. In order to deal effectively with them, the government of Xiamen should exercise proper influence and play a constructive role.The RSI is capital intensive. A project of RSI takes much time to complete with, needs much money to flow in, and experiences high risks. The imperfect competition and localization require the local government intervene greatly in the RSI. The appropriate actions taken by the government can effectively reduce the failure of decision, help the RSI provide the better goods and service for the city, and improve the macroeconomic management of the government.The article discusses the implications of the development of RSI for the overall economy, and attempts to give a explanation for the causes of high rise in the house prices. Then it analyzes the current demand for and supply of houses in Xiamen. And next it tentatively give a goal for the further development of RSI in Xiamen. Last but not least, the government's role has been analyzed from various perspectives.The article makes two contributions. First, the analysis of government role in the future development of RSI is made under a unified framework which involves both the present situation and future prospects; and second, it do such analysis from quiet different angles in order not to make partial results.