Study Of The Real Estate Market Information Asymmetries

Since the reform and opening-up, especially from the 1990s, the real estate industry in China has fast developed and has become one of the quite important branches in the national economy. At the same time, many problems emerged in the course of its development, the reason of that is not only from the macro-control but also from the investors and developers. From the point of view of the market, on the one hand, in order to maximize short-term and sectional interests, some real estate enterprises designedly disguise some important information of their commodities, which impinges consumers' interests and leads them to make converse choices; the worse thing is that they even conduct some "moral hazard" activities in their sales, which brings about the low efficiency of the real estate market. On the other hand, most of the consumers are not professional enough to know the quality of the property fully, which have led to the serious information asymmetry problems.Based on the basic concept of the real estate market and the theory of information asymmetry, this paper analyzes and studies the problems mentioned above and brings up some corresponding countermeasures. Combined with my working experiences in a property agent company, I think the development of the property agent company is an important way to improve the efficiency and solve the information asymmetry problems in the real estate market.The paper is divided into four parts. The first part tells the survey of the real estate market, which mainly discusses the basic concepts of real estate market and the problems exist in China's property market. The second part is about the information economics analysis of the real estate market. Through the introduction of the information economics theory, this part analyzes the low efficiency problem aroused by adverse selection and moral hazard. The third part expounds the game between property companies and consumers, which summarizes the representation and aftermath of the information asymmetry problems in China's real estate market. The forth part concerns countermeasure studies on perfecting the real estate market. Through the analysis of the reasons, the author gives some advice to the government, developers and consumers to perfect the real estate market of China. At last, the paper ends in the studies on the property agent's development.