The Competition And Monopoly Power Analysis In Chinese Real Estate Market

From the evolution of our country's real estate market, we can see that there are 30 years'market flaws in our country history, from the 50's intermediate stages to the 80's initial period. During that time, the disposition of land resource and house resources was no longer through the market, but directly by government's plan. The public real estate market was basically cancelled. After 80's, along with the carrying out of housing commercialization policy, reformation of city land using system, the housing market in our country was restart and got a new development. But up to now, the development of the housing market is still very limited; there are series of new problems: market disorder, false advertisement, the unbalance of the supply structure, the increasing of the house price. All of these issues initiate our pondering, what is the kind of competition in real estate market, why this kind of competition can cause the market mechanism fail; how strong the real estate developers'market power is. In view of these questions, first we review the market structure and market performance in real estate market, and then we rethink the competition styles between real estate market developers. Through the demonstration, we analyzed the market monopoly power, especially the effects it caused to the housing price. Making a comprehensive view of this article, there are two innovations:First, we restudied the competition style in real estate market, and pointed out that it is a non- price competition between the real estate developers, price collusion is the basic character of real estate industry.Second, using the detailed data, we made an approximate summary and analysis about the monopoly influence in real estate housing market; also we analyzed the influences of this monopoly power, and drew the corresponding conclusion.