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The Investment Analysis and Feasibility Study for BinjiangRoad Garden Project in Fengdou County

Author: WangYunSheng
Tutor: SuSu
School: Chongqing University
Course: Business Administration
Keywords: Real estate projects Investment Analysis Feasibility study
CLC: F224
Type: Master's thesis
Year: 2008
Downloads: 321
Quote: 0
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Abstract


The huge amount of investment in real estate development projects, long construction period, influenced by many factors, and thus there is a high risk investment. With the real estate market gradually standardized, competition is becoming increasingly fierce, the fewer the chances of success of the real estate investors rely on luck to get the investment. Therefore, in the decision-making phase of the project, in order to avoid the blindness in investment, more and more real estate investors feasibility study of the project as an important basis for investment decisions. But the development of China's real estate industry has been the last two decades, the slow development of the feasibility study before investment. Some developers either do not do a feasibility study on blind investment, or want to do a feasibility study, because of the lack of professional talent or incomplete information, lack of experience, methods and means adopted by rich enough viable research error. In this paper, Fengdu County a specific real estate projects, for example, use of the market context of the general theory of the feasibility study on the project, the project regional market conditions, the strengths and weaknesses of the project itself, a comprehensive analysis, the market positioning of the project and the construction and operation of programs. On this basis, the economic forecast this project is reasonable, whether the financial earnings, and thus clear the feasibility of development projects. Cost and revenue estimates, the use of the cost method and market comparison method to predict the price of the project and prepare a scientific basis for the project's final pricing. Financial evaluation, in accordance with the investment plans of the project as well as funding schedule, the use of the statement of cash flows, the amount of principal and interest, sensitivity analysis and probabilistic analysis of mathematical methods and models, the project's profitability, solvency and uncertain pertinent assessment. As the real estate pricing is an important and complex market decisions, you need to weigh all aspects of the specific circumstances. However, in practice, the decision-makers vulnerable to the interference of other market information, make decisions with doctrinal subjective color. In the feasibility study in order to make the project price more in line with the actual market advantage the comparable listings quantify pricing and a linear regression equation to determine the project sales price, meaning on the basis of in-depth understanding of the market and objective grasp of the project, to develop a reasonable market price. In addition, the conclusion of the feasibility study, feedback, analysis of error for practical reasons. The purpose of doing so is to provide a reference for future real estate development project feasibility study research to explore the specific methods to improve the feasibility study conclusions accuracy. The results show that the investment of the Garden Project is feasible, is mainly reflected in the following aspects: First, in the context of the macro-control the Fengdu County real estate market is still showing a good momentum of development. Second, compared to major competitors, the garden project with strong market competitiveness. Third, the project has good economic benefits and a strong ability to resist risks. Fourth, the project has a good social and environmental benefits. With the development of the real estate market, the feasibility study will be toward a more professional, social development, this article has some practical significance.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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