Connotation, Character, Economic And Social Function Of Real Estate Industry In China And America, Comparative Study

Since 80 's last century, real estate industry has made great contribution to economic and social development in China. Meanwhile a series of problem such as real estate price surging, bubble, and wasting of land resource cause public misgiving and debate. The arguments whether or not real estate industry ought to be the main industry of China have been constant. Scarceness of fundamental research could be the reason of these. Related domestic or abroad researches about the essence of real estate industry show, there has been many uncertain points about the content, character and economic or social function of real estate industry. Furthermore researches in this field are avoid of enough demonstration proves.This comparative study about the history and actuality of estate industry in China and America displays that they are both industry group of real estate development, management and service. Otherwise real estate development is the most important part of the group. However, the main body of Chinese real estate industry which major business model is developing and selling real estate is not service industry actually. In contrast American real industry whose principal part, real estate lessors including commercial property developers who develop and lease commercial property to others and real estate brokerage, belong to service sector. Furthermore they are different obviously in type of main related industry, fluctuation frequency, bulwark for entering, product diversity degree and business profit level. Therefore Chinese and U.S real estate industry differ from each other in the way and intensity of their contribution to their homeland economy growth, though they are basic and forerunner industry. Meanwhile real estate industry in these two countries offers different employee positions, effect social wealth and government income in different ways.Analysis of environment of real estate industry in China and U.S shows that the differences in economic system and model, law foundation, legislations of real estate, governmental interference to real estate industry, especially land and tax system, the industry self administration system, urbanization situation, industry structure and real estate financial market, are the main outter factors forcing real estate industry. Otherwise the difference of orbit and stage of industry evolution, is the intrinsic factor causing the differences between China and U.S real estate industry.Principle of real estate industry evolution determined by the orbit of real property circulation method evolution tells that China ought to plan economic and social function of real estate industry with forward sight, improve real estate financial market by reforming finance system and improve governmental interference to real estate industry by forcing real estate legislation construction and promote real estate market transparency, to force the industry's developing and to solve the problems with progress of the industry.