There are many factors that affect the real estate price. This paper explains the phenomenon of high housing prices from the regional oligopoly of the real estate market. First of all, this paper comprehensively reviews the development of Shanghai real estate market, summarizes the achievements of Shanghai real estate industry in recent decades, and points out the main problems of high housing prices in Shanghai.
Secondly, the oligopoly of Shanghai real estate market is analyzed. Firstly, the possibility of oligopoly in the real estate market is analyzed from the characteristics of real estate, that is, the positioning of real estate and the heterogeneity of real estate products. Then it analyzes the entry barriers of real estate manufacturers; Finally, through strict empirical analysis, it is concluded that the Shanghai real estate market is a typical oligopoly market, and it is further proposed that the real estate market is a regional oligopoly market as far as the whole country is concerned.
Thirdly, the behavior of real estate enterprises in oligopoly market is analyzed. Real estate enterprises use their monopoly position to realize the monopoly of land, real estate pricing, real estate product management and real estate information. It reveals that real estate enterprises constantly push up real estate prices, encroach on consumers' surplus and maximize their own profits through price collusion, price discrimination against consumers, tax burden transfer and malicious speculation. It is pointed out that it is precisely because of the monopolistic behavior of real estate enterprises that the macro-control policies of the country are greatly discounted.
Finally, on the basis of strict analysis, the author puts forward some policy suggestions to effectively curb the rise of real estate prices.