Overseas Property Market Selection Study Of A Company

The real estate industry has been impacted a lot since the2008world financialcrisis and has been struggling to recover. The industry has shown signs of growthsince the world economy began to recover gradually in2012.Chinese centralgovernment has adjusted it’s stimulation policy of the industry from extensive growthto the intensive and healthy one through deliberate price control measures. At thesame time, many property development enterprises are encouraged to going global byexploring the wider overseas market. Many Chinese real estate investment companieshave come to the overseas market for investment. With the appreciation of RMB andChinese economic momentum in recent years, many rich man are also makinginvestment in overseas market. Against the backdrop, A company decided to access tothe overseas market.This essay retained the internal files and the accounting statement of the Acompany. It also analyzed A company’s business operation and development strategy,balance sheet and income status, drawing conclusions on advantages anddisadvantages of the A company. With the disadvantages, there comes the necessityand pressure to explore overseas market; with the advantages, there come thepossibilities and feasibilities of exploring overseas market.When it comes to the target market selection, this essay found that most Chinesecompanies started their overseas investment in Hongkong and Singapore amongcountries and regions in Asia based on documents of global economic development.But later their destination has been changed to US, UK and Australian for thetraditional overseas markets have adjusted their policies. US, UK and Australianmarkets are well developed with stable political environment and legal framework andrelevant predictable profit margin. Therefore A company selected these three countriesas the study target for overseas property market investment as they are ratherrepresentative.According to marketing principle and theory, this essay analyzed different macroelements for the three potential property market overseas, including people, nature,political and legal environment, social and cultural environment and technicalconditions in a PEST analysis. Refer to A companies specifics, the essay conductedSWOT analysis, comparing A company’s advantages and disadvantages with the opportunities and threats of the three markets. Finally the essay found it is correct thatA company selected these three market as the target for overseas investment.Finally, the essay used market selection theory and AHP analysis method toscreen the three markets with specific studies conducted over five factors includingmarket real demand, market potential demand, average GDP income, competition andeconomic performance. Through quantitative and qualitative analysis and relatedcalculation, the final target market has been selected. That is Australian propertymarket.