A Study Of The Commercial Housing Investment Environment In Taiyuan

With China’s economic development entering a “new normal”, economic structure and economic development mode adjustment should be paid more attention to in order to improve the quality of economic development and sustainability. The residential real estate industry is closely related to people’s daily life and has an impact on an area’s economic development and optimization of economic structure due to its industrial association. With the downward pressure still severe, the residential real estate industry is expected to maintain economic growth to a large extent. Taiyuan, central capital city as it is, has been playing its indispensable role of carrying provincial economic development and enhancing the comprehensive competitiveness of the central region. Now it focuses on the construction of investment environment to accelerate the development of residential real estate industry in order to adapt to the fierce competition of regional economic the transformation of resource-dependent cities. Thus an evaluation of Taiyuan’s investment environment is highly necessary due to its unique regional conditions and policies.This paper presents an analysis of Taiyuan’s investment environment based on thorough evaluation of its natural environment, economic environment, market environment and infrastructure environment, with reference to a lot of related literature at home and abroad. The investment environment of commercial housing in Taiyuan during 2010-2014 was studied by entropy method and result shows an improving investment environment year by year. An updated research on the comparison of Taiyuan and another 5 central capital cities was carried out using hierarchical grey relational analysis. The results show that Taiyuan was far behind the other 5 central capital cities, especially in soft environment aspects including economic environment and market environment compared to Wuhan, Changsha and Zhengzhou.This paper casts a creative perspective on Taiyuan’s commercial housing investment environment by both analyzing its development as time goes on and comparing it with other central capital cities and reaches to the point that although Taiyuan’s commercial housing investment environment has been improving year by year, it is still far behind other central capital cities in overall level of development. This paper also provides theoretical reference and policy basis which may improve Taiyuan’s commercial housing investment environment.