When it comes to real estate,there are two kinds of sellers-those who can afford to wait for as long as it is necessary to sell all fair market values,and those who cannot wait but have to sell more quickly due to various constraints.While every constrained seller employs a selling strategy according to his unique situation,the unconstrained sellers share one common aspect in their strategies-to wait as long as it normally takes to sell their desired price under current market conditions.And under the normal condition,the later one usually becomes the world's largest real estate companies.The following are the example of this kind of phonomenon.
Through mergers and acquisition, the Beijing Capital Development Holdings Co Ltd has become the largest-scale enterprise, with assets totalling more than 50 billion yuan (US$6.21 billion).Combined sales revenues of the top 10 firms, in terms of comprehensive strength, reached 68.66 billion yuan (US$8.53 billion) last year, accounting for 5.2 percent of the nation's market share.In 2004 and 2003, sales revenues of the top 10 firms stood at 50.55 billion yuan (US$6.3 billion) and 35.68 billion yuan (US$4.44 billion) respectively, taking up 4.87 per cent and 4.65 per cent of the industry's total sales revenues.Compared with U.S. and other developed markets, China's real estate industry is less experienced and immature. Currently, there are approximately 25,000 real estate brokerage agencies employing over 200,000 agents.
In addition, an estimated 20,000 property management companies employing over 2 million people exist in China. Many of the brokerage companies, however, may not possess business licenses and qualification certificates. For instance, it was reported that, of the 4,000 real estate agencies currently operating in Beijing, only about 700 have business licenses.10 In a recent inspection in Shanghai, 982 real estate brokerage firms were found guilty of operating without registration with the appropriate government agency. From above report,we can draw a conclusion that largest real estate companies have more experiences at the industry of real estate.