The Concentration and Market Structure Optimization of Chinese Real Estate

The low market concentration of real estate industry makes it difficult for enterprises of the industry to gain scale economy and keeps back the optimization of real estate market in China. Using Industrial organization theory's research technique, this paper studies the real estate industry market structure of China. The study shows that the rapid expansion of the market scale, the increased number of enterprises' entrance to the market and the low figure of scale barrier index are main factors which cause the low market concentration. Taking market concentration as measurement of real estate market structure, the paper inspects Chinese real estate industry market concentration condition by the index of CR and HI. It argues that China should optimize its real estate market structure by moderate concentration and provides bases for the healthy development of real estate industry both theoretically and practically.