Problems And Countermeasures Of China’s Real Estate Industry Organizations

The real estate industry attracted widespread attention because of their specialsocio-economic status, government regulation of the real estate is also spared noeffort. The ideal operational status of the real estate market, requiring both to ensurethat the people live, but also the industry will not generate volatility. The managementof the real estate industry is a livelihood and economic double big problem.In market economy environment, before the regulation of an industry, we mustfirst understand its industrial organization, make clear what problems the market cansolve, what problems must be assisted by the government. Competition in the marketis an important driving force to promote the optimal allocation of resources, butsometimes the market itself is flawed too. The government should clear away barriersto competition, and use administrative measures appropriately to complete the thingsthat market can not do, this is the guiding ideology.In this paper, the research object is the industrial organization of China’s housingindustry, the study is constructed by the market structure, market behavior, and marketperformance. Chapter of the market structure, including the market concentration,product differentiation, barriers to entry; market behavior chapter, including mergersand acquisitions, organizations, industry associations and development investmentbehavior; market performance including industry profits and sales, productionefficiency, the match degrees of housing supply structure and demand structure, theLerner index and index Bain. the study of these aspects, clarify the Chinese real estateindustry has a strong competitive pressures. At the same time there are also somehuman factors impede competition between the area of the real estate market, forexample, systems which is not conducive to the free flow of labor force between regions. At the same time, government in some aspects exist functions vacancy.Finally, we propose concrete suggestions for some of the problems existing in China’sreal estate market, according to the theory of contestable markets theory of marketfailure.