The Security Investment Analysis Of The Real Estate Industry In 2008

The real estate industry highly contributes to the national economic growth rate and become a pillar industry of the national economy. In 2007, the secondary mortgage loan crisis was broke out in the United States, the US and British real estate markets had decline substantially. As a result of the expected appreciation of the RMB, the massive influx of Investment funds led to substantial increase in Chinese real estate market with imbalance between the supply and demand relationships. However, in September, the Chinese government strengthened the control over the real estate market by promulgated and implemented a number of new policy on it. With the influence of the new policy, a downturn in volume of real estate market occurred, housing prices in many cities have loosened. Whether there is a turning point of real estate market, how does the market will go and how to invest on it, those questions become the focus of attention in 2008.The author analyzes the future of the real estate industry in China with the long-term development prospects, draw a conclusion it will maintain a fine long-term growth due to short supply of land and strongly rigid market demand, demographic bonus, accelerated process of urbanization, and the appreciation of RMB. And the author of this article summarize the operational circumstance of the real estate market and the policy effect in 2007 as well as in-depth study the supply and demand factors affect the market in the incoming 2008 that contradiction between supply and demand, draw a conclusion the housing price will maintain moving steady in a certain interval instead of going ups and downs for rigid market demand is the power and the source which support the development of the market steady. The author also analyze by contrast historical data both the increased Company performance of the real estate industry listed companies and the growth in Shanghai & Shenzhen 300 index to consider that the rate of stock up in real estate industry listed companies was Lag behind and should have a stock up later. Moreover, since October 2007, the stock of real estate industry listed companies had going down Substantial, considering the growth rate in the future, the real estate industry as a whole has obviously investmental value in its level of valuation. In 2008, the control measures over the real estate industry will keeping tight, therefore, investment direction in the real estate industry is those companies which have rich land reserves, fund advantages, or resource-based companies have just a little impact with macroeconomic regulations and controls.