Real Estate Development

In the background of globalization,the real estate isalsoalready not the traditionally local businessand becoming more globalized. This paperIwillfocus on the globalization of real estate in Shenzhen, China.
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1.Coakley, J. (1994). The integration of property and financial markets, Environment and Planning A 1994, 26, 697 -713
2.Logan, J. (1993). Cycles and Trends In The Globalization Of Real Estate, in P.L. Knox (ed), The Restless Urban Landscape, Englewood Cliffs: Prentice-Hall, 35-54
Many developers outside China mainlandentering the Shenzhen property market in 1990s,the management conceptsthey introducing have mademore and more developersin China Mainlandpay more attention to the enterprises’brand valueand raise thecompetitive.
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Globalization isnow increasing connectivity in many aspects of social and economic lives.Although, cannot be denied thepolicy oflocallymunicipal bureaucracy is much important for property development in Shenzhen. However,Integration of Property and Capital Markets, Organizational Change and Securitization of Real Estate Investment, these features proofreal estate becoming globalized istrue and irreversible.
Special Economic Zones in 1979, Shenzhenattractsenormousforeigncapitaltoinvest various industries forcity construction.Theend-user demandused todominate the property investments inthe 1980s and 1990sin Shenzhen, for example,manyindustrial properties (e.g. factory and warehouse)were builtinShekouof Shenzhendue to manufacturing demand.Butnow things seem to bechanging, for example, Shenzhen government decidetodevelopa new CBD inQianhai in Shenzhenin2009,over 70 companies from Fortune 500 have showed interest to set up offices in the district and 236 companies have registered in Qianhai,many offices properties were set up this yearsand face very high vacancy rates at this moment, end-user demand is not the primaryconsideration,long-term investment became the first priority of thedevelopersand investors.
2)Demand from the end-users cannot adequately explain the locational choice of property investment
Since the institution of the policy of“reform and opening”establishment of the
For example,Vanke, founded in Shenzhen in 1984,one of the biggestdevelopersinChina.After years of efforts, Vanke has gained a competitive edge in the housing industry. “Vanke” has become the first well-known trademark in the industry.
China International Trust and Investment Corporation(CITIC)Group, one ofthelargestdevelopersinChina,foundedCITIC Securities Co., Ltd.asafinancialsubsidiaryin 1999 in Shenzhen.It enable company have acloserrelationship withfinance industries. Also, CICTC runs other business like, construction, tunnels infrastructures, coal supply, etc, all of these business willhelp the company boost the revenue.
From the 2000s,real estate enters the fast development period in Shenzhen,more and morepeople find that the property is notjust acommodity, buying or selling the house isa good way to maximize investment income,exchange value in the occupier marketbecomesdominant to enable occupiers to trade upproperties,thespeculation in the Shenzhen housing marketare becoming increasingly common,for examplethewell-knownWenzhou-based property speculatorsappearedin Shenzhen at that time,result inhousing pricesboomandhighvacancy rates before the Financial Crisis or city in the south of Southern China’s Guangdong Province, theglobalizationof real estatehas caused some major changes in property market in Shenzhen, these are summarized as follow:
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Undeniably,globalization is a key trend in the business world today;many industries in the worldwereaffected by globalizationof our present era.Through the capital, information, goods andcultureexchange,maximum utilization ofthe global advantage,we could be able get a cheaper or better product than before, just like the production process of iPhone, total 31 countries play a rolein the creation of the iPhone 6.
1)Property Exchange valuein the occupier marketbecomes dominant
Coakley, J. (1994)arguesthe property as a use value and an exchange value as below:
The duality of property or real estate as both use and exchange value is more complex than in the case of many other commodities, partly because of its inherent nature and partly because of the increasing integration between property and financial markets.