Real Estate Development Project Cost Management

As we know, the real estate has become a new economic growth point and a pillar industry of national economy. Because of the financial crisis and other factors, the real estate market has shown a downturn trend after the overheated investment. The problems have emerged one after another, such as, house prices falling, the credit risk of banks increasing and not enough management level of the development project. They directly endanger the development of the economic efficiency of enterprises and the profit margins have also repeatedly been compressed. The text will try to study the projects' cost management to achieve the control objectives, improve the level of enterprises' cost management and enhance the market competitiveness by the effective coordination, organization and control.First, the thesis analyses the challenges and problems the real estate facing nowadays to show the importance of research and by stating the relevant research results at home and abroad to find out the starting point. Then, the paper simply introduces the theory of cost management and the specific features of real estate development, also, analyses the business process to find out the aspects of ploys according to Porter's value chain analysis method which can creates value really so as to makes the basis for the following cost design and methods. Next, we construct a cost control model by combine activity-based costing and target costing method with which we can make the designed target decompose and carry out layers to layers. During the implementation process in specific, the method of lean thinking will be suggested to improve the economic benefit and efficiency of development, that is to say, how should we do to make the key aspects of the development optimized. And then, by using Analytical Hierarchy Process, we put forward the idea of evaluation system for the effectiveness of cost management, by summing up, we can continuously optimized, improve the cost management level for the projects. In the end, the article takes a project in Yangzhou for example to enrich the argument, making the theory more realistic. Through the cost analysis of project, we can identify the problems in the development process and put forward specific measures to resolve.In a word, the real estate development companies will only continue to study the theory with practice, improve their own level of cost management in the increasingly fierce market competition and rapidly changing internal and external environment to develop.