The Strategic Alliance Of Chinese Real Estate Industry

In 1979, China's first commercial housing community "East Lake Village" was built up at foreign capital in Guangzhou.With the reform and opening up , the whole process of real estate development is increasingly formal and complex. A series of process just like investment and decision-making, land's utilization, relocation, planning and design, project construction , the building basis for supporting, environmental protection, market research, sales, mapping and registration of ownership,finance,taxation, insurance, accounting and statistics,property management has to be gone through.During the process, besides the management of the executive branch like National Land Agency, Bureau, Planning Bureau, Construction Committee, landscaping Bureau, the Environmental Protection Agency, Fire Brigade, Civil Air Defense Office,estate enterprises may have to face with the co-ordination and communication with the material side, banks, fund centers, prospective customers and the owners.From 2001, China's real estate industry become a pillar industry in national economy. It developed rapidly , boosting economic growth, accelerating urbanization process, improving the people's living conditions. However, the urgent objectives of the country's developers are as following : shortening the project cycle, reducing project costs and speeding up capital turnover, building the project with a relatively high value. While the current development of the whole industry is in a relatively dispersed phase with low concentration of resources and poor risk-resisting ability . To improve the enterprise's core competitiveness for better survival and sustainable development,Real estate development enterprises need seek strategic partners in the market ,take joint action to participate in the fierce market competition.As a result,some enterprises have already initiated the establishment of their own or in membership of certain strategic alliance, these organizations brought us a new concept .In the above context, every process of the real estate development are closely linked with the co-ordinationand integration. Just as a saying goes,"Water can carry a boat, can also overturn it". Whether the objectives of the alliance can be achieved is related to the survival of enterprises, and may also affect the Union's plans, tasks, functions, development and revision.As social intermediary organizations, traditional strategic alliance organizations can provide services like market analysis, information consulting, business diagnostics, technical support, counseling, technology incubators, trade negotiations, and personnel training. The smooth functioning of such organizations and good growth in the final will mark mature market economy and a civil society . The Union of real estate development enterprises can not only realize the above-mentioned traditional functions, but also benefit the construction of the whole social service system.This paper seeks to clarify the theoretical basis , cause and effect of real estate unions by studying the project case "Hainan old-age pension Co.Ltd. " and the experience of mature Union.It analyzes and studies the application of the Union in the real estate development process,and tries to give a viable direction to promote the coordinated development of the real estate development alliance .