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Structural evolution of real estate industry in China: 2002-2017

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  • Han, Yang
  • Zhang, Haotian
  • Zhao, Yong

Abstract

This paper proposes an innovative framework that identifies the structural characteristics and the evolution process of real estate industry in China from 2002 to 2017 through a series of modified network analysis methods. Our results suggest that the growth momentum of real estate industry can be extended to a wide range of industries especially the financial industry while the systematic risk of the industry is becoming evident. Therefore, macro-prudential policies tailored to local conditions should continue to be the first line of defense. In addition, guiding policies towards professional service for developers are supposed to be emphasized since Chinese real estate industry is within the transition from construction-oriented towards service-oriented. Moreover, to satisfy the demand of citizens for improved housing and promote the upgrading of housing consumption is also critical because the role as supplier of housing in macroeconomy is becoming increasingly important according to our calculation.

Suggested Citation

  • Han, Yang & Zhang, Haotian & Zhao, Yong, 2021. "Structural evolution of real estate industry in China: 2002-2017," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 45-56.
    • Handle: RePEc:eee:streco:v:57:y:2021:i:c:p:45-56
    DOI: 10.1016/j.strueco.2021.01.010
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