Asymmetric Information Of The Real Estate Market And Real Estate Investment Trust Fund

Market information asymmetries are objective. The presence of information asymmetries, cause market reverse choosing behaviour and moral hazard behaviour, result in low efficiency on the market and even market demise. Because of the professional effect of the real estate market and characteristics of real estate commodity (such as non-sexual means quality, price discontinuity)make the information asymmetry problem more serious, and it is an important cause of invalidity of the real estate market. In the real estate market, real estate suppliers get their information superiority and use it to get a difference between their real estate goods and similar products, so as to get a situation of creating a monopoly pricing of real estate commodity .But if consumers want to reduce loss, it is necessary to try to get more information about real estate.As we know, the information search have costs. How to choose between the costs and benefits when they are trying to get more information , consumers face choices. Therefore the article primarily from the consumer's perspective, stresses if we want to eliminate the real estate market information asymmetry and improve operational efficiency, the best method is to raise negotiation forces of consumers of the real estate market to reduce the cost of information .And real estate investment trust fund is a good approach.Chapter Ⅰ of this article writes from the information asymmetry theory and outlines the basic elements of the theory of information asymmetry. Chapter Ⅱ begins a detailed analysis of real estate market information asymmetries, including the causes of information asymmetry, manifestations and the harm to the real estate market.And in this part Ⅰ raise a the concept of invalidity of the real estate market .Chapter Ⅲ analyses the current academic focus on the elimination of the real estate market information asymmetry system design , analyse them using methods of economics and point out their inadequacies. Chapter Ⅳ and Ⅴ, followed by detailed analysis methods of the institutional economics, introduces the definition of Trust Fund and real estate investment trust ,the rules how to change, and development background, classification, advantages of real estate investment trust fund,itc. Chapter Ⅵ mainly introduces the development of the real estate investment trust fund in our country. Because the difference of the background between our country and foreigns ,our trust syetem shew many inadequacies in its early development stage ,even since it started to develop But the real estate investment trust funds are accepted by the reform of our financial system and real estate in recent years ,and it has a rapid development. At the same time China's real estate investment trust fund also faces many obstacles and self-development system inadequate.