Strategic Transformation Of The Real Estate Business Under The New Situation

The real estate, after developing for 20 years, accounts for an increasing percentage of national economy. Actually, the real estate industry in China is still in the primary stage of development when land, credit, prices and other aspects set obstacles for a healthy financial environment. As the new leadership proposed a new economic normality in the background, the old real estate business model no longer meet the situation which is changing in the new norm. Many real estate developers are confronted with challenges. This paperfigures out strategies for future real estate evolution based on the market changes and political policies.First of all, this paper describes the concept and theory of corporate strategic transformation as the theoretical basis for strategic transformation.Aspects concerned include real estate companies concentrated in metropolis, the industry structure adjustment and the distinct differences between lower tier and second-tier cities in the polarization of the profits in housing prices. In fact, the pressure of real estate set obstacles for promotion of domestic demand and manufacturing businesses since it is facing the problems of limited finance support and credibility. This demonstrates the urgency of the strategic transformation. Meanwhile, it seems the distinctions of real estate development between varied cities could be enormous depends on the government policy even though there are great progress to be accomplished with new strategy. Obviously, the policy will be localized and focus more on overseas investment with the combination of finance. Finally, it is also important to pay attention tourbanization, market demands, new technologies, formats, business models which set demands for varied real estate development. Diversified pension, tourism, industry, commerce, etc. will enhance competitiveness by meeting differentiated customer needs, strengthening the management of human resources and expanding financial channels for enterprises which offer support for enterprise culture and brand benefits.