Write 48 page essay on the topic The impact of the economic crisis on China's real estate: An investigation of the property market in Shanghai and Beijing. (MB.Download file to see previous pages... C

Write 48 page essay on the topic The impact of the economic crisis on China's real estate: An investigation of the property market in Shanghai and Beijing. (MB.

China’s property market has been analyzed with focus on development stages and special focus is on Shanghai and Beijing, the two premier cities. Research findings indicate that China’s property market is robust enough to remain unaffected by the global economic crisis. As an emerging and growing economy with a strategic global position, China can bear the tremors of the worldwide recession and land on its feet. Besides, the government is taking a number of initiatives to attract FDI in the property market. Investing in China is a profitable due to China’s entry in the open market. Financial organizations have diversified their product portfolios to accommodate the changing needs of the growing economy. China due to its strategic position has become the central point for economic growth and is becoming a benchmark for other world economies. China’s property market is facing complex issues ranging from government intervention to a property bubble. However, the value of the market is increasing and it is becoming an attractive investment option. The dissertation is going to establish that. China has a good property investment for foreigners and has escaped unharmed from the recession to a great extent. . The major drawbacks of the market are the government restrictions and the emerging property bubble. The dissertation through secondary analysis establishes that the best cities to invest in are not Beijing and Shanghai but inland cities such as Wuhan. Acknowledgements This is to express my sincere thanks for the help and guidance provided by my supervisor, Liston-Heyes, Catherine, from time to time in fulfilling of the needs of the dissertation project. With the guidance and help provided by Catherine, it has been a successful effort. My humble thanks to Catherine and my husband, Patrick Wu for their fully support during my dissertation. TABLE OF CONTENTS 1. INTRODUCTION 7 1.1 Background to research 8 1.2 Background to dissertation 8 1.3 Rationale to specific research 9 2. LITERATURE REVIEW 10 2.1 Introduction 10 2.2 Literary discussion of market factors 11 Figure 1: Age Distribution of First Home Buyers 14 Figure 2: Marital Status of FHB 14 2.3 Macroeconomics of China and the Property Market 16 2.4 Housing and business cycles 18 2.5 The role of foreign investment 20 2.6 Interactions between Asset Price and Monetary Policy 22 3. THEORY 24 3.1 A Simplified-form of House Price Model 24 3.2 DiPasquale and Wheaton Model 26 3.3 China Housing Market in the DiPasquale Wheaton Model 27 3.3.1 Exploring stage [Pre-1998] 27 3.3.2 Primary policy: testing and research 27 Figure 3a: Basic DiPasquale-Wheaton model 28 3.3.3 Rising stage [1998-2001] 28 3.3.4 Primary policy: support 28 3.3.5 Model analysis 29 Figure 3b: DiPasquale- Wheaton model—the rising stage 30 30 3.3.6 Development stage I [2001-2003] 30 3.3.7 Primary policy: normalization 30 3.3.8 Model analysis 31 Figure 3c: DiPasquale-Wheaton model: the development stage I 31 3.3.9 Development stage II [2003-2005] 32 3.3.10 Primary policy: sterilization, demand control 32 3.3.11 Model analysis 33 Figure 3d: DiPasquale- Wheaton model: the development stage II 33 3.3.12 Over-heating stage [2005-2006] 34 3.3.