Research On The Interest Of Real Estate Investment Environment

Since the reform in1978, China began to implement the system of market economy which brings the upward trend in real estate investment. Real estate investment quota exploded Especially since the great changes of China’s housing system in the late1990s. Large amounts of capital into the real estate market due to such Macro real estate investment environment change.The real estate investment’s prosperity has brought three aspects of reality:first is the contradiction between economic interests and social interests of the real estate development in the ongoing process of China’s urbanization process; Second is the contradiction between high housing prices and the housing need of low income families under the Non-equilibrium circumstance of real estate market; Third is the contradiction between the costs and benefits of real estate investment in this period of of frequent policy-control and financial risks.All the three contradictions starts from the "real estate investment environment changes". The real estate investment environment is a combination of the macroeconomic environment, policies environment, monetary policy, land expropriation policies, municipal administration, residents, energy utilities, real estate location, cultural and natural environment etc, which is the basis of bring about its benefits and also the basis for analysis benefits’ distribution.All the three contradictions could be finally explained as "benefits implements and distributions which brings by real estate investment"."Interest" means the most basic economic and social interests, including all aspects of human social life among beneficiaries. Real estate investment environment have an important impact on investment decisions, benefits implement and distribution. Ultimately, the changes in the real estate investment environment brought changes to the "interests" of real estate investment.On the basis of the theory of interest, benefit analysis, comparative analysis, historical analysis and normative analysis method, this research, by building up a real estate investment environment evaluation system and analyzing the evaluation results of the whole nation as well as4representative cities in China, this research seeks the mechanism of benefits implement and distribution in the invest behavior of housing market.This research was implement by3parts:theoretical framework, empirical research and policy recommendation. The first part included literature review and a definition of "real estate investment environment interests";The second part is a empirical research in the aspects of macro\meso\micro interests based on the evaluation results (evaluated by Analytic Hierarchy Process)of the entire country and4representative cities of Beijing、 Shanghai、Tianjin、Chongqing; The third part is policy recommendations which improve the interests of real estate investment environment, the core of the policies is to strengthen public investment policies to meet the housing needs of low-income families.