Research On The Cost Control For Affordable Housing Project

With the successive implementation of a series of government regulation policies in recent years, the real estate industry has entered an era of low profitability. Furthermore, compared with other housing projects, the margin of profitability for affordable housing projects for low-to-medium income families is even smaller. As a result, cost control over the entire process of an affordable housing project has real significance for securing the returns on investment.Drawing on the concept, features, and the major work of cost control at the various stages of development of affordable housing projects, this thesis proposes corresponding control measures dealing with the major problems facing the various stages of development, and carries out a sensitivity analysis between the major factors affecting cost control and returns on investment. It also invokes specific cases to discuss the implementation of cost control measures during the entire course of an affordable housing project.Research results indicate: 1)Cost control has markedly greater significance for affordable housing projects than for other real estate projects; 2) Cost control should run through the entire process and all aspects of the development and implementation of affordable housing projects; Rigorous and effective control should permeate the various stages of affordable housing projects. Effective total cost control over affordable housing projects can be achieved only when initiatives of all departments are fully mobilized, resources effectively allocated, and the development cost for the project controlled in an'all-personnel-involved, the entire-process-monitored, and an all-round'fashion. Besides, only when cost control is coordinated with quality control, work progress control and contract control can the cost of the project effectively lowered and the overall function and profit of the project realized; 3)Special emphases for cost control vary for different stages of the development. In guaranteeing the fulfillment of the target total cost, particular stresses should be placed on cost control management at the decision-making and designing stages.Suggestions are provided as the follows: 1)Real estate development enterprises should further their understanding of the importance of cost control for affordable housing; 2)Cost control should be carried out for affordable housing with a systemic and all-round approach to ensure the expected returns on investment.