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Table 1: The Gross Domestic Product (GDP) and real estate investment in China during 1992 till 2006. (Adapted from National Bureau of Statistics of China, 2007).

Figure 1: Graphical representation of the comparison between GDP growth rate and real estate investment in China during the period of 1992 till 2006. (Adapted from National Bureau of Statistics of China, 2007).

The obvious correlation between Chinese GDP and REI has been illustrated in figure 1, which has signalized the great contributions that real estate industry has made to Chinese economy. Supportive Chinese government policies have given real estate market much space to develop, saying that the invest in real estate market has increased by 20 per cent each year from 1999-2006, resulting in the double digit percentage increase in real estate prices in a continuous span of time. It also has been found that the average price index of residence has increased by 54.2 per cent from 2002 to 2005. the real estate prices have increased by 100 per cent in big cities like Shanghai, Beijing, Shenzhen and Guangzhou, whereas the prices in Hangzhou have increased by 200 per cent (Liu, 2006).
2.2 Brief Overview of Risk Management Studies in the Real Estate Sector
It is of great importance to take precautions against the risks involved in the real estate industry due to its special characteristics that include huge investment and complicated impacting. Factors that involve political, economic, social and the like elements will all impose risks to the real estate industry.
The research for the risks management in real estate investment can date back to the 1930s when some scholars were researching on real estate construction risks and its management for service post construction.
During 1960s and 1970s, risk studies in the real estate investment only limited to the management of construction and safety that involve the analysis of risks and its prevention, risk measurement, risks analysis and decisions for portfolio. Wurkzebach (1991) has analyzed risks of property portfolio in the real estate investment. Greer and Kolbe (1993) have examined decisions and returns of various types of real estate investments. Sindt (1998) put on the emphasis on the research and analysis of real estate investment. Spaulding (1997) and Jovanovic (1999) identified risks, detailed analyzed risks prevention and appraisal of the real estate investment. AbouRizk (2004) has used the concept of SMART (simple multiple attribute rating technique) to examine real estate investment. Dikmen and Birgonul (2006) introduced the “Analytic Hierarchy Process” when analyzed multinational projects. Risks of real estate corporations resulted from the uncertainty and the ambiguous information according to the research of Ibrahim et al (2006), who have established the Fuzzy System to deal with risks in the real estate investments.
Moreover, the Bubble theory of the real estate and the Real Estate Cycle theory have been introduced from the perspective of a huge economics by the economists. The four periods of real estate cycle can be identified as prosperity, decline, recession and recovery. The real price of estate increases tremendously over a period本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。