Discussion Of The Real Estate Business Survival Strategies In The Context Of Financial Crisis And Empirical Research

Since the year of 2007, American subprime crisis has upgraded to the infrequent global financial crisis with strong impacts, resulting in the bankruptcy of mortgage loan institutions and investment funds, the take-over of banks by government, as well as the sharp volatility in stock market. The financial crisis breaks the fire wall of the global financial system to spread gradually to the real economy. And the crisis strongly influences China's economy, continually reflected in the areas of economic growth, foreign trade, financial market and market prices, domestic employment and negative effect of enterprises operating.To China's real estate market during the adjustment period, the deterioration of the home and abroad economy can have unfavorable impacts, as well as the favorable impacts.On the one hand, the expectation of decrease in house prices is intensified;the income of people and expectation of income is decreased, as well as the house purchasing power; the difficulty of market bubble is increased;the attractiveness of investment in China is reduced; the financing of real estate enterprises is more difficult. On the other hand, the change of credit policy can provide a comparatively relax environment for real estate market; the properly relax monetary policy can benefit the stability of the market; the policy of tax cuts reduces the transaction cost;the superior enterprises will prosper and inferior ones eliminate in the crisis;the large investment in low-income housing project is the basis for the stability of the market.The real estate industry and enterprises in America, Japan and Hong Kong has accumulated amount of experience in facing financial crisis:American real estate industry paves the new way for its development through the strategy of surviving in suburban areas. Daiwa House Industry co.ltd in Japan takes steel building as its key product through constant innovations and spreading in order to actively face, adjust and explore the market so as to easily face the bubbles in the Japanese market. Li Jiacheng's Cheung Kong can get stronger in the crisis with its rich experience and becomes the example of the real estate enterprises to turn crisis into opportunities.The five survival strategies of China's real estate enterprises have studied under the background of financial crisis in the thesis:cost-controlling strategy, pricing and co-organization merger strategy, competition strategy, capital-financing strategy and crisis management strategy.Controlling the outlay cost, reduction of employees and salary and cuts in the operating cost are the cost control strategy at present which can work efficiently and quickly. However, those measures can only resolve the temporary problems without looking into the permanent roots.And the real efficient one is to intensify the financing power and to get branding through working on the quality of products and service.The price-off promotion can relieve the risk of breaking the cash flow for some real estate development, but the price-off measure should be one-off rather than the trending process, otherwise the customers will stop buying. Some large enterprises reduce the price before others, which can accelerate the inward flood of capital to catch the precious cash flow and to create the opportunities for enterprises'emerges and reorganizations.However, many small and medium-sized enterprises with financial problems are reluctant to take the price-off measure, but hope to make an alliance with large enterprises of sufficient capital. To dispute the operating issues and improve finance of China's real estate enterprises, the core competition of the enterprises should be fostered and upgraded; the service philosophy of customers orientation be established; brand-building be strengthened to realize the win-win between customers and enterprises; the measures of sale and rent together and mass customization be taken, house type be changed.The real estate enterprises are in dire need of the innovation of financial channels to resolve the problems of blocking up financing and lacking of capital.To get listed on the stock market, real estate trusts, funds and bonds, cooperative development and project capital financing are the measures to face financial crisis.With the enlargement of development scale and the increase of the listed enterprises on the stock market, the impact of uncertainties in the operating process of the enterprises becomes enlarged and divergent and turns into the crisis of enterprises. Taking the examples of recent two years, the thesis analyzes the crisis management strategy of real estate enterprises.Under the background of global financial crisis, the survival strategy of China' real estate enterprises is firstly probed in order to make the appliance and empirical study of survival strategy practical and pragmatic, so as to significantly give guidance for China's real estate enterprises.