The Real Estate Project Prior-Cost Control Study

With the fast development of Chinese real estate, particularly in recent year's madness development, the real estate has accumulated a deep economic bubble. At the same time in the process of the real estate development, there's some irrational factors, mainly is the fast rising housing prices has far beyond China's economic growth rate. And the Government departments have begun to introduce a series of financing and other aspects of macro-control policy, but with little success. With the real estate market is gradually standardized, competition has become intensified. In this context of economic how to survival and development become the real estate developers first need. Clearly, in order to achieve accurate and timely predictions of future market changes, real estate companies has to enhance their resist capacity of national macro-control, and how to reduce development costs has become an effective way to search for profit developers. As the housing development costs, marketing costs, management fees and finance charges are highly rigid to change, reduce the cost of real estate development project will focus on early fall.In this paper, we applied the basic theory of cost management and relevant methods of cost control, based on the results of scholars at home and abroad in the cost-control real estate development. The article first analyzes the current situation of pre-project cost control of China's real estate, the project is divided into different stage ,include decision-making phase, design phase and bidding phase and so on, respectively, reveal the existing issues in the current real estate development project cost control; Secondly, from the different stages of cost control and control point analysis the main factors of the early real estate development project cost control; third, with the initial specification work the real estate development projects flow, the paper elaborate systemly the process and methods of cost control in pre-described real estate development project; Finally, with a case in Hangzhou ,Xiao Shan district, a real estate named HD, describe in detail the process of the pre-project cost control, especially focusing on project planning and design phase and decision-making stage, and explain the estimates of land value in decision-making phase of the project's, through the discounted cash flow method, we have analysis the costs of real estate dynamically, revealed the whole process of how to draft target cost, combined with the early real estate development project work breakdown structure and the organizational structure, finally establish an effective cost control system.