Comparative analysis on market characteristics of real estate market in Hong Kong and mainland China

摘要

The characteristics of a real estate market will be determined by social and economical environments. This understanding is important to the analysis for a particular real estate market. This paper has established a formal scheme for analyzing the characteristics of a real estate market that differs in important respects from the other markets, in this process it was found necessary to identify the particular elements whose attributes may contribute to illustrate the difference. Following the classical SCP paradigm of the industrial organization theory, this analysis starts from the market structure, enterprises’ conduct and enterprises' performance of real estate industry in China. A real estate market indicator system including three parts as well as three-hierarchy indicators was established, and a comparative analysis on two different market environments was constructed on the basis. Finally, compared with relatively mature real estate market of Hong Kong, remarkable regional market discrepancy, low market entry barriers and extensive property product mode were identified as the most typical characteristics for China real estate market. This can help new entrants locate themselves within the typical market environment and reengineering actions can be adopted for making right market competition strategies in the practical life.