The Choice Of Real Estate Financing Mode Under Current Situation

Since the implementation of the opening and reform policy, the Chinese economy has witnessed rapid development, which has propelled great progress in urbanization along with high-speed growth in the real estate industry. During this process, some problems constraining further development of the industry have also emerged, among which the financing problem has become a stand-out. The characteristics of the real estate industry decide the difficulties in real estate financing, while the tightening of macro-economic regulation of China’s Real Estate Market add further difficulties. Against such a background, it has become an urgent problem to actively explore new financing channels while expanding existing channels.This paper utilizes real estate financing concepts and theories, draws lessons from foreign real estate financing, takes into full account of the current state of China’s real estate industry as well as the macro policies, and analyzes relevant cases to explore appropriate real estate financing mode, so as to act as guidance for future development of real estate corporations.This paper holds that future real estate financing mode will be featured by investment trusts, bank loan, securitization and capital market, with real estate investment trusts as the mainstream. China’s real estate investment trusts start rather late compared with developed countries, and there are still a series of problems. So as to boost the development of real estate investment trusts, problems in such field as law and regulation, information disclosure, tax allowance, training of professional talents and foundation of professional organizations need to be fixed.