Research On Risk Management Of Real-estate Development Project

Real-estate industry, as one of the pillar industries for our national economy, has a major impact on economic development of the whole country as well as social stability. Nowadays, real-estate industry in China is facing increasing challenges. From the external environment, the rapid growth of national economy and gradual standardization of market jointly contribute to more fierce competition. From real-estate industry itself, long development period, huge investment, strong regional influence and other factors of real-estate development project lead to considerable risk factors. Thus, the research on risk management of real-estate development project becomes a very important issue.The paper focused on real-estate development project, conducted a systematic study on research situation of risk management of real-estate development, identified issues related to real-estate development risk management. This paper also identified the risk of real-estate development by means of commonly used risk identification methods and classified them to political risk, construction risk, financial risk, market risk and natural risk. This paper introduced commonly used methods for project risk management, especially fuzzy comprehensive assessment. It also proposed various risk measures against risk factors of real-estate development projects according to the principle of risk reduction, risk reduction, risk retention and risk transfer. Then, risk controlling method and tools are introduced and discussed. Finally, this paper conducted case study on"Fascinating City"project, achieved the conclusion of general risk by means of Fuzzy comprehensive Assessment, and presented real-estate development project risk management system based on the four factors of risk management organization, risk management process, risk management methods and risk management objectives.