ShuoZhou Commodity Residential Market Development Trend Analysis

Over the recent years, most cities and regions in China have experienced a fast growth ofhousing price and overheated investment. The increase in housing price far exceeds that of GDPand residents’ income, and significantly outstrips the purchasing power of a majority of residents,which evokes severe social conflicts and injustice. The regulatory polices in terms of the real estateindustry are often defective and cannot be effectively implemented. It was not until2010when thecentral government launched a stringent house-purchase restriction in the real estate market did thecommercial residential buildings see a freeze and the price start to be stabilized. Against thisbackdrop, the current development and future trend of the commercial housing market in Shuozhou,a third-tier city in China, are not only associated with the sound and sustainable development of thereal estate industry in Shuozhou, but also an important issue facing the local government, real estatedevelopers and citizens.In the context of the regulation of the commercial housing market in China, through ananalysis of the status quo of the commercial housing market in Shuozhou, this paper carries out anin-depth research of the supply status of commercial housing regarding development andinvestment, development scale etc., the demand status of sales space, sales volume etc., as well astheir influencing factors by means of taking supply and demand as the major line and housing priceas a signal. Through a comprehensive comparison with the commercial housing market inShuozhou, we may conclude that the commercial housing market in Shuozhou is currentlyexperiencing a growth boom, with a good prospect of development. By means of a series of analysisconcerning the status quo of the commercial housing, the paper proposes the major problemsconfronting the commercial housing market in Shuozhou, including: the tax policy of thegovernment has an impact over the effective demand, resulting in a high non-occupation housingspace; there is an imbalance in the commercial housing market and the inefficient planning andadministration; with the under-supply of small-spaced housing, there is a conspicuous conflict in thestructure of the housing market; residents have some misunderstandings in their house purchasingphilosophy. Apart from showing the problems, this paper makes a prediction of supply, demand andhousing price of the commercial housing over the next six years by means of statistical analysis andthe integration of theory and practice. By making comparison with the Twelfth Five-Year Plan inShuozhou, this paper projects the development trend of the real estate market in Shuozhou. Againstthe background of a stable macro-environment, urbanization will be pushed forward, and thecommercial housing will step into a mid-term development, exhibiting a vigorous demand andinsufficient supply. In order to seek a sound development of the commercial housing in Shuozhou, the governmentshould: change the way of macro-regulation and policy making to offer differential treatment todifferent groups; optimize the structure of the commercial housing market to add more medium-and small-sized housing; standardize the commercial housing market and improve the legal system;guide the consumption and establish a transparent and fair information platform of the commercialhousing industry. Housing consumers should be practical in choosing the housing space, and form aproper housing philosophy. Developers should adapt to the changes in the market, alter the singledevelopment philosophy, add technology content to the commercial housing and establish brandawareness.