The Development Path for Real Estate of China During the Normalization of the COVID-19

Abstract

The COVID-19 pandemic swept the world in early 2020, which strongly inhibited and severely affected the real estate industry of China. In terms of information retrieving, integrating relevant data and implementation of SWOT and PEST analysis, this paper explores the development path of it in the post-epidemic era. According to the analysis, under the normalization of the pandemic, the market has several strengths and weaknesses. To be specific, strengths (e.g., the removal of the house purchase quota policies and burgeoning demand for housing) and weaknesses (e.g., blocked corporate capital chains and restricted offline sales) are clearly demonstrated. Meanwhile, opportunities and threats are also existed for this market. For instance, opportunities include LPR interest rate cuts and deposit reserve ratio reductions, and threats include uncertain outbreaks of pandemic and changing consuming attitudes of the millennial generation. In order to stabilize the real estate market, the government should keep implementing a series of macro-control and monetary policies. Additionally, real estate companies should change the design of house patterns, focus on the development of green and intelligent housing products, and cater to consumers’ demand for new housing types. Under the premise of regular pandemic prevention and control, companies should also actively create an "online + offline" sales model to reduce the constraints of the pandemic. These results shed light on guiding further exploration of future development direction for the market.