Lake Haiya Court, Real Estate Development Project Risk Management Study

After 30 years of development, real estate market is now an important part of Chinese economy. Under increasing competition, real estate projects are now managed with high level of sophistication and profitable. However, as a result of the slow growing world economy and new government regulations, real estate industry is facing some great competitions as well as issues from land acquisition, financing, planning, design, and cost control. Real estate development project is capital-intensive, has long development period, and faces various risks. As a result, one of the top research topics at real estate development firms is how to successfully meet real estate development project goals, manage risk, and realize stable long-term growth in the current environment.This thesis provides both qualitative and quantitative analysis of key risk factors of a Shanghai real estate development project based on extensive study of real estate project risk management theory. This research first identifies key risk factor types and hierarchy using brainstorming and expert judgment. Further, it analyzes, evaluates, and sorts consequences of each risk factor using analytic hierarchy process considering missing and inaccurate data. In the end, it proposes appropriate risk management and mitigation measures according to real estate risk management theory based on risk consequences and the development project features.