Beijing Real Estate Industry Monopoly

Real estate also known as real estate, commonly referred to as real estate or foreign real property, is collectively referred to housing and land two kinds of property. At present, China's economic growth rapidly, GDP growth of 8% for several consecutive years. Among them, the real estate industry to the GDP growth has played a pivotal role in China's real estate investment in GDP, the proportion of the total in 1998 from 41.5% of the way up to 2003,81.66%. However, the impact factors of China's real estate market, such as:policy, demand, purchasing power, hot money, the stock market, etc, are quietly taken place greatly. The real estate market outlook becomes more grimly. In this paper, Beijing's real estate industry is a research background. The real estate market in Beijing from 1994 -2008 years, the housing sales, residential sales volume and average price of sales, real estate investment and fixed asset investment, real estate market, such as supply and demand analysis in the form of a chart Beijing's real estate to reflect the basic Quotes.In order to analysis the monopoly level of the Beijing's real estate industry, the article uses industrial concentration measure formula. The top 10 of the Beijing real estate company listed on total sales and Beijing real estate company's qualification levels measured concentration respectively, both the CR values obtained at 25%, and has an upward trend。Although the results is a rough estimate, but it also shows the listed companies is gradually increase the ability to control the real estate industry to increase the degree of monopoly. The article focused on the theoretical foundation based on Lerner's index using Eviews6 software, sales and marketing to extend the average price Dickey-Fuller (ADF) test, Engle-Granger two-step co-integration test and regression analysis, come to Beijing room the real estate industry Lerner index of 0.56, the Beijing real estate market has some degree of monopoly. Monopoly restrict competition, leading to a monopoly, such as high-priced, inefficient allocation of resources and market failure, the real estate industry and the state's macro regulation and control of corruption out of control and other issues not conducive to the development of the national economy, has also led to middle-income and low-income persons were overwhelmed, allowing vested interests to get in the looting of wealth at the same time, they sacrificed people's livelihood and promote China's economic development, a major driving force-domestic demand. Therefore, the state must take appropriate measures to break the monopolies, restrictions on real estate at high prices, making it to the benefit of people's livelihood and national economic development is conducive to walking on the road.