The Research On The Internationalization Development Strategy Of Chinese Real Estate Enterprises

The realty industry has been established as the pillar industries of the national economy and has grown hugely along with the rapid development of economy and the reform of the housing system. While, the last decade has witnessed a series of problems, mainly as follows:Property prices have raised too fast and too far showing an unmanageable growth. Meanwhile, China’s real estate market is also showing significant fluctuations and other typical features of the primary market, such as heavy speculative atmosphere, unregulated market operation mechanism and unsound legal system. In order to suppress the rising house prices and high inventories of third-and fourth-tier cities, the central government has unveiled a series of measures to tighten control of the property market, amid fears that unaffordable housing could lead to greater social discontent. As the impact of purchase limits and tighter credit requirements imposed by the government spreads, property developers have fallen into a cash crunch. Moreover, rising transaction price of land in the primary market led to the rising market risk, and the profit margins continue to be compressed.In recent years, the huge demand and the profit space of China’s real estate market has attracted a large number of big multinational real estate companies to compete in China, for example, Tishman Speyer, Hutchison Whampoa, Cade and Road King estate. These multinational corporations have rich overseas project operation experience, wide financing platform, advanced management experience, first-class construction technology and advanced design concepts, which undoubtedly increases the market competition. Chinese enterprises are confronted with fierce challenges of foreign real estate enterprises. In this case, China enterprises should take active strategies to deal with their challenges. On the one hand, they are supposed to make the best of home-field advantage to compete with them in the home market in the domestic market, the use of home advantage and competition. On the other hand, Chinese real estate enterprises should take full advantage of international resources in the international market. They can develop excellent real estate products through their reasonable integration and deployment of international resources, thus getting a piece of the lucrative market via internationalization. Therefore, the internationalization of Chinese real estate enterprises has become one problem that they have no choice but to deal with.Through the analysis of the necessity and feasibility of Chinese real estate enterprises’ international development, combining the theory of strategic positioning, this paper will provide strategic guidance for the internationalization development of Chinese real estate industry.