Research Of Real Estate Investment Based On Option Game

The subject of real estate investment market is the real estate developers, and there is a great impact on the scientific degree of the real estate investment decision-making made by them to the market risk, but the healthy development of the real estate industry will affect the sustainable and stable development of the entire national economy, therefore, it is very important to make appropriate investment decision-making. The traditional evaluation methodology of investment, taking the NPV for example, which has some weaknesses to overcome, and it ignores the irreversibility of the investment flexibility of the time for investment, but the real option method can conquer the defects, the property of real estate investment embodies itself real options, meanwhile, the contest of real option is very competitive, therefore, it is very suitable to apply the option game theory to solve the problems. The investment decision-making needs the option game method, and it can not only provide guidance in making the rational decision for the real estate developers, but also provide the theoretical support for the government to regulate the housing market using the rules of market economy. It can help the real estate market to maintain the healthy and stable development. It also can clearly be seen that this study has an important practical significance to the healthy and stable development of the real estate market and even the whole national economy. On the basis of analyzing real estate investment risk, this subject leads option game theory in real estate investment, combining the characteristics of real estate projects, building the option game model between two real estate developers, providing a viable decision-making model and algorithm of real estate portfolio for the theoretical community and the business community, having the practical significance to improve the level in making the decision about real estate investment.The innovative point of this article is:(1) Systematically analyzing the uncertainty factors that impact the real estate investment income, and completing the analysis about the risk in real estate investment;(2) Taking the horizontal comparison between NPV and real option, finding the defects of the traditional methods to highlight the advantage of real option;(3) On the basis of detailed introducing the developing status of option game at home and broad, systematically summarizing the basic model of option game, and having a deep study;(4) Establishing the option game model, and introducing into the field of the real estate investment, illustrating the use of option game in real estate investment.