Development Ranking in Real Estate Strategy Management in China Based on TOPSIS Method

Abstract

Real estate is the mainstay industry of the national economy, whose development is highly correlated with the development of regional economy, the culture and the life of people. The inner structure of real estate in China is composed of 3 main factors, namely real estate industry, real estate enterprises and real estate market. By using PCA (Principal Component Analysis), we can characterize the contribution of the above 3 different factors. After PCA, we apply the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) model, in which the weights reflect the contribution of different factors, to evaluate and rank the development of real estate in main cities of China. This measurement for ranking is able to diagnosis development of real estate industry in China as well as providing constructive information for government to direct the macro-reform in the real estate.