Comparison of Real Estate Market Level and Financing Mode of Real Estate Companies

Abstract

Contemporarily, with the rapid development of the real estate industry, its market needs a large number of sources of capital. At present, real estate financing mainly relies on bank loans to solve the capital needs, and a small number of large enterprises through the listing of financing. However, these financing modes alone are not enough to solve the needs of real estate enterprises for capital. This study selects countries or regions with different levels of real estate markets and compares the financing of representative real estate companies in these locations in an attempt to identify the relationship between the level of real estate markets and the financing patterns of real estate companies. According to the analysis, Sun Hung Kai Properties in Hong Kong uses a variety of new financial instruments to finance itself, D R Horton in the US has diversified its financing, and DLF in India gets most of its financing from banks. Overall, the empirical analysis will be useful for guiding further exploration of the impact of real estate market levels on corporate financing patterns.