Global real estate companies bring both positive and negative impact to the local market. On one hand, they encourage local economic development. As more real estate investments will be brought to the local economy, the capital inflow to the country, which can be used for country development, will increase. There will also be more choices of real estate projects for the local market, better decisions could be made for local development.
On the other hand, global real estate companies extend the geographical reach and offer a complete service to assist people all over the oral in acquiring profitable property investments, the demand for local real estate market increases. It leads to the inflation of real estate which the price of local real estate increases sharply. For example, real estate prices in China rose by 1 1. 7 percent in June, 2011, which was a double-digit growth that made some economists called it a “real estate bubble. ” Global real estate companies also outsourced sophisticated real estate and hospitality services. It caused keen competition among the market.
Some local real estate firms that are less competitive may be adversely effected. Moreover, global real estate companies cause the Homogeneities Problem. Since they create standardized levels of services potentially, it leads to standardized levels of expectations and an importation of external culture. For example, Orange County in Beijing, makes China as a replica of Southern California. Houses in Orange County were all built in American-style and designed by Southern California architects. Also, the architecture of the Venetian Macho is modeled on the Venetian in Lass Vegas, which is a replica of the historic city of Venice in Italy. )”Faux residences” represent the physical transportation of a culture and lifestyle. When “faux residences” are set up in some culturally distinct regions, they influence the lifestyle of the inhabitants. For instance, Shanghai-La – Traders Hotels in Yang, Manner, influences the culture and economy in Manner. In the perspective of culture, although it facilitates the activities of local people, such as international conferences and weddings, and provides more choices of activities, its reconstruction projects created the threat of demolition of the former colonial building.
For example, The High Court, City Hall, General Among San Market and the public hospitals. It also shows the invasion of Western culture and lifestyle. The management style and the hotel services style of Shanghai-La are different from the local hotels that are operated by Burmese. In the economic area, Shanghai-La promoted the local tourism industry. Local small shops can have more opportunities to earn a higher income in order to raise the living standard. Moreover, it may also attract expatriates who wish to maintain their own unique lifestyle in a foreign land.
For example, bits of American geography that are emerged all over China, Soho, Central Park, Palm Springs and Manhattan Gardens are among recent development in China. In addition, it reflects the image and the increasing aspirations of other countries’ lifestyle. Orange County in China is an example reflecting Chinese consumers’ increasing Western aspirations. According to Weighting Yang, vice president of Science , Chinese people like the image of the American lifestyle, and they are the only company building homes like this there.
I is clear that their tottering NAS tapped into a well to desire. A homes in Orange County were sold within a month. C) Globalization of real estate may lead to the transference of Western-style management techniques to a lesser-developed country, for example knowledge and skills, Western-style HARM practices, are introduced to China. At the same time, as it encourage global real estate investment which causes capital inflow and economy development, it creates more Job opportunities. On the contrary, issues of cultural hegemony may rise because of invasion of foreign culture.
For instant, Houses in Orange County were all built with sprawling American-style open-plan kitchens which are poorly suited to typical Chinese cooking. Nevertheless, globalization of real estate has a larger impact to local resident compare with the globalization of other sectors as it is a necessary. It creates the inflation pressure because of the inflow of foreign capital. It derived Chinese property prices upwards by 1 1. 7 percent in June, 2011 and also growing worry that low and middle income earners will not be able to buy their own property.
The globalization of real estate is desirable on a small extend as it creates the serious inflation problem of real property and Asset bubbles among the country, it may destroy the economy. As Globalization of real estate is unavoidable, solutions are suggested to reduce the impacts on local home ownership. Government should pay more emphasis to more affordable priced homes when opening up of Government-owned land for redevelopment. For example, The planned township development in Segueing Bully offers a great opportunity to kick off well thought out public housing scheme for eligible Klan Valley folks.