The Development Of Real Estate Industry In China Is In The Dual Role Of The Real Economy And The Fictitious Economy

The real estate in China has gradually developed with reforming opening and modernization. Recently, the real estate sector has seen rapid development and many problems of the development, such as high housing price, structural imbalances, high vacancy rate, irregular leasing market, the narrow financing channel, poor enterprise qualification and so on. These problems reflect the immature performance of the real estate in China and draw our attention on the development of real estate industry. We have to analyze the development of real estate industry in China.This article overviews the development history of real estate in China and analyze the development of the real estate in two developed countries, USA and Japan. It makes the international comparison about the development of the real estate industry. The analysis shows that the real estate in China would evolve in the direction of the industry specialization, greater attention on cash flow and giving priority to service.This article establishes a Structural Equation Model (SEM) and carries on comparative analysis about the impact of the real economy and the fictitious economy on the real estate development. The analysis shows that the real economy and the fictitious economy are positively related to the real estate industry in our country, and compared with real economy, fictitious economy has greater effect on real estate. This finding has demonstrated that the direction of the real estate evolution in China accords with economic laws and development experience.Our analysis shows that the real economy and the fictitious economy have the positive effect on the development of real estate, and that fictitious economy has greater effect, and that the real estate in China would evolve in the direction of the industry specialization, greater attention on cash flow and giving priority to service. The right evolution path promotes the real estate in China from quantitative change to qualitative change. This study has practical and theoretical significance in promoting sustainable development of the real estate in our country.