Abstract
The unstable tracks of Evergrande Group and Country Garden in China’s real estate market are affecting people’s decisions to buy homes. This study looks into how these changes affect how real estate is owned from privately to by the government. This research examines consumer trust and transaction costs by examining these companies’ compliance issues, their foreign debt, and what regulators are doing to stop this. It looks at how buying a house affects culture and how brand names help people deal with this changed world. The study shows how complicated the connection is between how businesses work, how laws are made, and how Chinese people feel about owning a home.
Introduction
The Evergrande Group and Country Garden scandals have shaken China’s real estate business, which has changed how people buy homes. Since then, people have become more aware of how brand names can lower transaction costs (Sun, 2022)[1]. As customers try to figure out how to buy a house in a constantly changing market, the recent crises have shown how vital brand image is. This shows how important it is to study how culture affects consumer behavior.
Literature Review
The literature review focuses on how brand names can lower buying and selling real estate costs. People who want to buy a house feel safe when they deal with a well-known company (Pan, 2020)[2]. Because Evergrande and Country Garden have been having trouble lately, these factors must be considered. This makes people want to look into how brand names might lose their importance during governmental uncertainty and financial crises. This calls into question the common belief that brand names lower risk in real estate deals.
Research Method
To get new ideas, this study uses qualitative research to examine news stories and expert opinions. By putting together their data, this study shows where Evergrande and Country Garden fit in China’s real estate market (Hou, 2021)[3]. The study method looks at how the problems these businesses are having affect how real estate buyers act and think.
Analysis
This in-depth study looks at Evergrande and Country Garden’s problems with following the rules and what happens when they cross governmental “red lines.” The study into their overseas debt shows how important stable finances are for maintaining customer trust. It also takes a close look at the heavy reliance on pre-sales and the shaky building project ratio, which shows flaws in the financing model. This specific study shows how these things impact the Evergrande and Country Garden brands in the framework of how people’s ideas about real estate are changing.
Discussion
This part talks about the complicated process of buying a home and suggests switching from private companies like Evergrande and Country Garden to ones owned by the government. This study looks at how this kind of change would affect culture, looking at things like customer trust, the way regulations are run, and the complicated role that brand names play in real estate. The talk also includes how government actions and state-owned businesses might change the story of buying a home, adding to the academic discussion on how the Chinese real estate market works.
Conclusion
In the end, the disasters at Evergrande and Country Garden changed the way people in China buy homes. Regulatory and financial worries make it necessary to carefully consider how much trust to put in private businesses. This study shows how brand names have changed over time to become important tools for navigating the complicated real estate market. This suggests that people are trusting state-owned businesses again. As the metaphorical dust settles, more research will be done on how these big events have changed the way people buy homes. More in-depth studies are needed to fully understand the long-term effects and future paths of China’s constantly shifting real estate market, which has a huge impact on how people act and think.
References
Hou, J. (2021, June). The Evaluation of the Health of Chinese Real Estate Market: Empirical Research based on index clustering and AHP. In Proceedings of the 2021 1st International Conference on Control and Intelligent Robotics (pp. 752-773).
Pan, R. (2020). The “Hainan” lesson in China’s real estate industry-the overheated Hainan housing market in the early 1990s and its influence (Doctoral dissertation, University of Reading).
Sun, J. (2022, December). Changes in the Real Estate Market in China and Its Impact on the Local Real Estate Market: Taking Junfa Group as an Example. In 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022) (pp. 609-618). Atlantis Press.
[1] Sun, J. (2022, December). Changes in the Real Estate Market in China and Its Impact on the Local Real Estate Market: Taking Junfa Group as an Example. In 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022) (pp. 609-618). Atlantis Press.
[2] Pan, R. (2020). The “Hainan” lesson in China’s real estate industry overheated Hainan housing market in the early 1990s and its influence (Doctoral dissertation, University of Reading).
[3]Hou, J. (2021, June). The Evaluation of the Chinese Real Estate Market Health: Empirical Research based on index clustering and AHP. In Proceedings of the 2021 1st International Conference on Control and Intelligent Robotics (pp. 752-773).
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