Study On The Coordinated Development Between The Real Estate Consumption And The Regional Economy In The Western Region

In recent years, real estate markets in eastern coastal areas of China have gone through unprecedented surge. As a result of overheated consumption in real estate industry causing the inability of local economies to keep up with excessive prices of apartments, real estate consumption became a central issue of nationwide discussion. In order to assure stable development of real estate consumption markets, in 2013, the Chinese government issued strict policy regarding the real estate industry, the policy addresses issues on land market side of the problem and also consumer side of the problem, the policy restrains the overheating of real estate consumption markets, persecute speculative behavior, promotes healthy, sustainable and stable development of real estate markets. As real estate markets of China`s western regions growth mature as well, real estate consumption have been gradually receiving more and more attention.The present thesis central theme is researching whether the real estate consumption of China`s western regions can develop in harmony with local economies. Through the analysis of western regions real estate consumption and local economies and their comparison with central and eastern regions, the thesis studies the degree of harmony between western regions real estate markets and local economies. The first step was to convey an internal analysis of provincial real estate consumption markets and subsequently conduct an external analysis through comparing the results with central regions, eastern regions and national average results, thus obtaining data for researching current situation of western regions real estate consumption markets. Identical comparative analysis was conducted on local economies of western regions. The analysis revealed that regarding the current situation in real estate consumption market and local economy there still exists a relatively significant disparity when western regions are being compared to eastern ones, but when compared to central regions, the level of development is very similar. Finally, we adopted the method of coupling coordination degree to measure the coordination of the real estate consumption and regional economic in the western region,and discovered that in 2013 real estate consumption of western regions and local economies development barely showed signs of coupling, the local economies development lacks behind the situation on real estate consumption. To solve this problem the economic development of western regions must be accelerated, the differences between individual regions must be diminished, the urbanization of those regions must be pushed forward and the rational consumer behavior on real estate markets must be promoted. If those plans will be successfully executed then the real estate consumption of western regions and local economies may develop in harmony.