| As an island province, Hainan is a separate geographic zone. Ever since China uplifted the Hainan International Tourism Island as a national strategy, Hainan’s urbanization rate increased significantly to56%, which was characterized by rural population migrating to urban areas on a large scale. This has brought about the development in real estate industry. Therefore, the urbanization and population gathering provided space for the island’s real estate development, objectively promoting related activities. Moreover, the improvement on people’s life quality, spirit and cultural knowledge also calls for a suitable infrastructure construction and industrial restructuring speed.The article focuses on the relation between urbanization and real estate development considering the regional difference by systematically analyzing the existing literature on real estate development mechanism. One the one hand, unlike most of the researches that emphasizes on housing price change, this article reaches to the core of its investment mechanism and discusses the relation between real estate and urbanization from the perspective of city development. On the other hand, for the high regional heterogeneity, this study introduces spatial economics research methods, considering regional variances as well as the common characteristics of real estate development in different regions, thus offering a more stable and in-depth analysis.By selecting the2007-2011panel data of18cities and countries in Hainan, the article studies the direct impact of urbanization on real estate development and the spillover effects on adjacent regions, considering regional-spatial factors and using spatial econometric models. The result shows that:1. Hainan urbanization level bring vast development space to the construction industry:first, the current city public service facilities are grossly inadequate, such as basic education, public health, green, library, sports facilities, public housing and tap water, toilet etc.. Second, in the background of urban and rural development, equality for rural provide public services is a huge system, there will be a large number of public infrastructure construction. Therefore, the Hainan province urbanization can promote the farmers into the city residents, the increase of the city population will increase the demand for real estate caused also city, and promote the rapid development of Hainan real estate.2. Hainan Province industrial structure adjustment did not significantly promote the development of the real estate industry. The industrial structure of a country or a region industry reflects the association between, is one of the structural determinants of economic growth, but also an important indicator to measure the level of economic development of a country or region. Practice has proved, as the industrial structure conversion of resources, in the different stages of economic development, the adjustment of the situation is different, with the national economic benefit are also different. In terms of a certain area, industry level, determines its economic qualities and strength; and the industrial structure is reasonable, is vital to the economy of this area can realize the stable, healthy, and rapid growth. Hainan province is one of the main contradiction of economic backward industrial structure is not reasonable. The Hainan Province industrial structure adjustment is not enough, the transformation of the industrial structure of urban and rural population did not lead to conversion, and promote the rapid development of the real estate industry.3. The investment environment in Hainan province change not only failed to play a positive role in promoting the Hainan estate development, rather than inhibit the development of real estate industry. Hainan belongs to the island economy province, is a typical investment-drag economy, due to the geographical characteristics of the relatively weak economic foundation and the island province of Hainan, the logistics cost is relatively high, enterprise production for the necessary resources are relatively poor, Hainan only create than other domestic areas more favorable investment and business environment, in order to give full play to later the advantage, in order to attract more investment, speed up economic and social development of Hainan, to change the industrialization level of Hainan Province, the level of urbanization, urban and rural residents income level is low and the economy of small face. In recent years, Hainan province at all levels of government to actively implement the "a province of the two","make three special "development strategy, closely around "accelerate the development of Hainan" in the innovation goals, unremittingly to strengthen the construction of investment environment, environmental conditions continue to improve. However, from the empirical results, further improve the investment environment in Hainan province. |
