Research On Cost Control In Real Estate Company

Cost management and control are major securities for an enterprise to defence both the internal and external pressure,and to survive and keep maintenance development.Only to keep the cost under the average level of the same field,and to keep a distant gap that an enterprise could have the competitive advantage.There should be no price decrease competitiveness,and focusing on the increasement of the unit profit of the products so as to raise the total profit level and ROI(return of investment) are the key foundations for rapid development.As for real estate industry which with high risk,the rules are the same.Especially that the real estate industry has been facing multiple challenges,profit making has altered from an extensive mode in land transaction to the mode by lean profit oriented in products.Under the circumstance of the land cost becoming more transparent and more market oriented,in order to decrease the development cost and raise the economic benefits,how to have a lean management on real estate development cost becomes a natural trend for this industry.To remain invincible in the cut-throat market competitions and to maintain great economic benefits,the real estate enterprises should pay highly attentions to the cost control and upper the level of cost management.By using case study method,this essay analyzes the case of the YC Real Estate Development Ltd.Based on the theory of target cost management,it gives a research on cost control and management of each phases of the real estate devlopment.And also it uses target cost management as the key theory structure for the analysis and raises strategies for problems exsiting in the cost control system of YC company.Real estate cost management is a huge system.This essay mainly concentrates on the the analysis of cost control procedure and methods of the develoment phase by cases study,and put them into the practice of real estate project cost control,in order to bring better cost control effects and improve the economic and social benefits as well.