Study of Potential Demand Confidence Index in Dalian Residential Market

Based on study of the sentiment index of consumers, the questionnaires of the potential demand in Dalian residential market were designed in order to quantify the consumers' confidence in purchasing houses and to predict the trend of real estate market. The surveys were both conducted in Fall Real Estate Trade Fair in 2011 and Spring Real Estate Trade Fair in 2012. The calculating method of the consumers' confidence index is established through verifying the credibility and validity of the questionnaires. The research shows that there is no heavy potential demand in the Dalian residential market, and most prospective consumers keep a "wait and see" attitude towards the market. The results also indicate that the cautious policies of investment and the macro-control of the rapid rising house price should be put into practice by the government and the house developing businessmen.