The Business Model Transition For Domestic Real Estate Companies

In this paper,the background is the course of Chinese real estate industry,from the start,development,maturity to present professional polarization.Overheating speculative investment happened in part of real estate area,including bubblization.Moreover,serious overstock makes structural problems outstanding.Accompanied by all kinds of risk superposition,the government have issued serious of macro-control measures including purchase restrictions,credit limits and tax policy.Therefore,the national economic structure has been adjusted.Consequently,Chinese real estate is facing an unprecedented challenge,which means the development of real estate is suffering bottleneck and transition period.Under this background,changing the operation model of the real estate is an unavoidable problem.This paper analysis Chinese real estate present operation and factories of transition.Furthermore,it concludes the intrinsic motivation of transition is that Chinese real estate needs transition as result of press from fund,cost,tax bearing and profit margin.The core of this paper is discussing details of transition,and this paper researches the exploration and practice of how Chinese real estate transits their strategy from asset-heavy to asset-light.Besides,it concludes the asset-light strategy that can be used by Chinese real estate through researching the case of Tishman Speyer's asset-light strategy.The primary model includes funds offer a financing method,output capacity to achieve small traders and return distribution.Furthermore,this paper analysis and conclude the result of asset-light strategy transition in two of Chinese outstanding real estate enterprises,like Vanke and Wanda Group.The result indicates feasibility and enlightenment of transition in asset-light.At the same time,it points out the limitations and applicable conditions of asset-light strategy.In general,that asset-light strategy is a rational choice when the speed of asset appreciation is far below the cost of capital.However,asset-light strategy asks for strong operation ability,management ability and capital operation ability of the enterprises.