Control Study On Item Cost Of SW Real Estate Corporation

In last few years, the government has come on land policies and finance policies for the sake of industry stabilization. The real estate market is becoming standard continuously, and its competition is becoming fierce continuously. Also, it is becoming more and more specialized and divided. Obviously, the real estate market is walking into a time of intensive management. In order to maximize profit of an investment, the cost of the project must be controlled effectively. An enterprise can reduce cost to get superiority in competition through enhance inner cost control, i.e. reduce the cost to be the lowest in every process of the project, including R&D, production, selling and service. If an enterprise's cost is lower than its competitors, it would win higher profit than average level. Therefore, cost controlling plays an important role in improving the status of competition for enterprises.In this paper, the factors which affect cost of real estate investment were analyzed, and the experiences of foreign and native outstanding real estate enterprises on cost control were used for references. We combined the specialty and resource advantages of corporation SW, making use of systematic theory, cybernetics, information theory and total controlling theory, through scheme comparing and economic analysis, putting the ideas and techniques of cost controlling into all processes of development, which contains setting up projects, choosing program scheme, engineering and purchasing, checking and accepting and so on, to effectively controlled the cost of the projects. The cost controlling of three stages were attached most importance on, that is, the project choosing and setting up at the beginning, the scheme designing stage and the engineering stage. Regulated research was used in this paper. Through quantitative analysis of the development costs of several native real estate enterprises, we found out a basic strategy to control the cost of real estate development qualitatively. This research can provide a probable way to set up and improve the cost controlling system of native real estate enterprises, it would be beneficial to them to increase profit and improve international competitive ability.