Research On The Relationship Between Market Structure, Efficiency And Performance Of Xi’an Real Estate Market

With the deepening reform of urban housing system, there are lots of issues such as the structure of supply and demand is not balanced, the industry performance is poor etc. with the growth of real estate industry at the same time. From the perspective of industrial organization, Xi’an was selected as research object within the framework of industrial organization theory, based on market power hypothesis and the efficiency structure hypothesis, the relationship between market structure, efficiency and performance of Xi’an real estate industry was analyzed and the key factors affecting the performance were identified.The related theory and research findings on the relationship between market structure and performance were introduced. Secondly, the current situation of real estate industry in Xi’an was described, market concentration, product differentiation, barriers to entry were detailed analyzed of the real estate market structure in Xi’an. The industry concentration of Xi’an real estate industry was relatively low with the monopolistically competitive market structure, there was no excessive monopoly and the competitive environment was good in real estate industry, and the product differentiation was mainly manifested as regional differences and brand differences. Then, DEA model was built to calculated efficiency of the real estate industry in Xi’an. The overall technical efficiency of Xi’an real estate industry’s was in the upper level, the low level of resource utilization is the main cause of the poor condition of technical efficiency. And then the performance of the real estate market of Xi’an was analyzed, it showed a high average profit margin in Xi’an real estate market, while the housing price-income ratio and commercial housing vacancy rate were high, and the low efficiency of resource allocation in real estate industry seriously affected social welfare in Xi’an. Finally, a multiple regression model was established based on the model which Berger built to analyze the relationship between market structure, efficiency and performance in Xi’an real estate industry. There were neither market power hypothesis nor the efficiency structure hypothesis in Xi’an real estate market. The empirical results showed that market concentration was inversely proportional to industry profit margin, the improvement of concentration and could not strengthen market performance; pure technical efficiency and scale efficiency were positively correlated with profit margin, which to some extent reflected efficiency structure hypothesis in real estate market of Xi’an, therefore market performance could enhanced by improving enterprises efficiency. Countermeasures and policy suggestions were put forward relationally to improve the present situation of real estate development in Xi’an at last.