Study On Break-even Analysis Of Commercial Residential

The real estate industry, which is a new industry after the reform and opening-up, has become pillar industries in national economy in China's new development stage. At present, in accordance with the problems during the development of real estate for that exist in particular with the rising housing prices, the state adopts a series of measure concerning tax, credit, the regulating role of land policy to strengthen guidance and market regulation. As the national policy has more influence on the real estate market, the risk of real estate project increases. As a result, economic uncertainty analysis and evaluation in real estate development process becomes necessary.Break-even analysis in uncertainty analysis is a more mature approach, which is particularly widespread in the application of economic analysis of industrial projects. However, due to the unique characteristics of commercial residential projects, the conclusion which is obtained by using the simple linear analysis of break-even analysis in economic analysis of commercial residential projects is faultiness to the policy-making body of investment. For this reason, the author analyze the characteristics of commercial residential projects in the first instance, then perform a study on the application of the break-even analysis in commercial residential project feasibility evaluation, and finally improve the break-even model.To start with analysis of the characteristics of real estate projects, this article explains and discusses the uncertainty characteristics caused by its own characteristics of estate property, gives detailed description the impact of various basic parameters to economic evaluation, use hedonic model, linear multi-objective planning and other methods to estimate various dominant factors of uncertainty estimation, definite the role of factors in cash flow of real estate development projects. On this basis, according to the characteristics of real estate projects, the traditional linear break-even analysis method was amended and improved, and non-linear break-even analysis and dynamic multi-factor approach which suit such real estate development projects. The method overcomes many inadequacies of the traditional linear break-even analysis. The theoretical analysis is close to reality, making investment decision-making more scientific and Reliability. Finally, the article gives break-even analysis of commercial residential projects, which reveals program effectiveness and the extent of the risks of commercial residential development projects, and it actions as a rest to the investor.