Case | HBS Case Collection | July 2007 (Revised July 2008)

The Beijing Dream

by Arthur I Segel, Voon Siang Lee, Jialei Tian and Ying Laura Wang

Abstract

The purchase of a single-family home is generally the major investment for most young couples in China. Shows in detail the process that a young couple goes through in late April 2007 to find, finance, and close on an apartment in Beijing within what they believe to be their financial capabilities. Takes place in the context of the rapidly developing Chinese real estate market and introduces issues concerning the search and property acquisition that are specific to Beijing. Also deals with the direct and indirect cost involved in home acquisition, and compares these costs to the rental alternative. Also explores the role that the Internet can play in the home-buying process in China.

Keywords: Property; Investment; Cost; Emerging Markets; Financing and Loans; Acquisition; Activity Based Costing and Management; Internet; Online Technology; Management Practices and Processes; Online Advertising; Renting or Rental; Real Estate Industry; Beijing; United States;

Citation:

Segel, Arthur I., Voon Siang Lee, Jialei Tian, and Ying Laura Wang. "The Beijing Dream." Harvard Business School Case 208-015, July 2007. (Revised July 2008.)