The Impacts of COVID-19 on Real Estate: Evidence from Evergrand Group and Greenland Group

Abstract

The COVID-19 virus is the novel coronavirus, which is an entirely new pathogen that first emerged in humans in late 2019. It has had a huge impact on various industries. Industries such as accommodation, tourism, transportation, retail, and catering saw a sharp decline in revenue; Manufacturing, real estate, and other industries have been repeatedly restricted due to the epidemic, unable to resume normal work. The real estate is immovable property, need to go to the scene to see the house decision. In this study, we investigate the impact of COVID-19 on real estate in the Evergrande Group and Greenland Group cases. According to the analysis, in the face of the epidemic, real estate companies need to explore a variety of sales channels. To sum up, the epidemic will inevitably affect the number of people looking at houses in the short term, which will affect the turnover and the revenue of housing enterprises. Overall, these results shed light on guiding further exploration in order to prevent the occurrence of similar events in the future when some small real estate businesses bankrupt.