Comparative Analysis Of Financing Mode Of Real Estate Enterprises

Housing industry pays a very critical role in a country's economy. It is an intensive capital needed industry. Sometime, money even can talk. Capital collection is very important for the housing investors due to housing needs huge investment especially when the land cost is very high and the ROI is very long. Recently, Chinese housing financing is prospering but it is still far away from being mature compared with that of the well developed countries. Its major capital is from the commercial banks which causes the commercial banks are running a super high risk of market and credit. How to well settle the method of collecting capital for housing industry is very critical in modern world. This paper reveals the issues recently existed in the housing capital collection area and analyzes their root cause with the help of case study, comparison analysis, real practicing etc.This paper firstly uses relevant capital collection theory and the analysis of our current capital collection situation to find the feasible way of innovative financing. Then, it proposes a theory that capital strategy should be changed based on different life cycle. This proposal was got with the help of studying cases of Vanke and DC (Vanke has been prospering due to the successful capital collection while DC's application was declined again and again)At last, it proposes several ways for bettering our current sole capital collection situation. This paper also reveals that financial invocation is super critical to no matter public or middle/small size companies. All the housing companies especially the middle or small size ones will be facing a risk of being shuffled again. Only can the one who has the capital collection issue well settled survive.