Real Estate Issues Related To Project Feasibility Analysis Study

The real estate industry is a typical capital-intensive industries, with a large investment, high risk, long life cycle, supply chain length, and strong regional characteristics. Many real estate project feasibility analysis is not sufficient scientific research, resulting in real estate construction project decision-making mistakes, not only waste a lot of manpower, material and financial resources, a fatal blow to the developers, but also lead to bank loans, deposits, and even affect the city rational development process. In this paper, the actual real estate experience, in-depth analysis of project feasibility analysis of the five key issues in depth through the surface of the data to look at the real problem, feasibility analysis on the sound made recommendations aimed at improving project feasibility analysis quality, so that more effective and objective evaluation of the feasibility analysis of project technical and economic effect of the market for investment decision-making more scientific basis for investment decisions to reduce or avoid mistakes.In this paper, according to real estate project feasibility analysis of the basic theory, project feasibility analysis of the real estate market analysis, technical analysis, economic analysis of three aspects of market analysis, technical analysis, investment estimation, financing, financial evaluation of five analyze key issues Research the five key points in the feasibility analysis and project operations prone to major problems, and finally to the program instances comprehensive comparative analysis,the formation of the best decisions for the feasibility study analysis of the conclusions reference. This paper is divided into eight chapters, the main contents are:Chapter1Introduction. This study describes the background and significance of research ideas and frameworks and research methods.Chapter2is the theoretical basis of the feasibility analysis. Feasibility Analysis explain the concept, role, according to the main content and feasibility analysis, feasibility analysis of proposed five key issues.Feasibility analysis can either refer to a practical activity, a discipline, but also can refer to a method. Feasibility analysis is conducted in a comprehensive decision-making stage of the analysis and appraisal work in a practical activity; across the engineering feasibility analysis is scientific, economic management and natural sciences of the emerging integrated discipline; feasibility analysis, including a variety of market research and forecasting, program structure and decision-making methods comparison and selection, risk analysis, technical and economic analysis and a number of comprehensive technical analysis methods.Feasibility analysis is divided into market analysis, technical analysis, economic analysis. Economic analysis can be broken down into estimated investment analysis, financing analysis, financial evaluation and analysis. Therefore, this paper will focus on these five key issues in-depth analysis.Chapter3is the market analysis. Describes the two main components of market analysis market research analysis and market positioning analysis of the main content, citing market positioning analysis bias case, the type of development that the positioning error and positioning error often leads to development of formats in the market positioning deviation, and analyzed.Successful operation of a real estate project, the final analysis, the result of market demand. Make informed choices, more than anything else, or feasibility analysis of data on the no economic sense.Failure to locate the type of development is mainly on the development of various types of market supply and demand analysis is not complete and adequate, to identify the type of positioning in the type of positioning is not based on the type of development, after conducting a feasibility assessment, analysis of the possibility of its implementation and the key factors. Development of the positioning error format is the key issue of whether the development of formats to meet changing market demand for accurate positioning. Wanda is a successful case.Chapter4is technical analysis. Introduction of technical analysis, including planning and design and construction conditions and schedule two main components, also lists the main points and the actual planning and design project complete comprehensive technical and economic indicators table, while also illustrates the difficulties of planning and design, and to the difficulties of planning and design problems were analyzed.Planning and design techniques to follow professional norms and, in general, refers to the main floor area ratio, building density, building height, building spacing, building floors, green rate, motor vehicle parking spaces and parking area so the number of technical points. The higher the volume, the relative comfort of residents in the lower, but resource saving; the other hand, the higher the comfort, the volume rate is low, not enough to save resources, but the environment has improved. All issues are in contradiction, but to both, if only the former or the latter, certainly not development, to seek a balance. Planning and design of the difficulty lies in how to meet the market demand for comfort of customers and developers to increase floor area ratio requirements, increased recycling of funds to improve the economics of projects contradiction between the requirements.To solve the problem of planning and design elements, we must balance the pursuit of design elements to market demand, according to the economic analysis of market positioning analysis, the flexibility to compete for the same projects within the region to the homogenization of difference do the planning and design focus on the floor area ratio, public facilities (schools, kindergartens, shopping malls, etc.) cost analysis, calculating the cost of construction after the unilateral, similar projects compares with the market, program and make judgments and choices.Chapter5is the estimated investment analysis. Describes the estimated investment cost of the land, and construction costs, the three major components of tax and investment estimates on the distortion caused by Jian engineering cost estimates distortion, underground garages and other assets estimated distortion, distortion estimated land value of the three main issues analyzed.They pointed out proposed funding estimates of project costs Jian class causes distortion, distortion on how to avoid the construction estimates put forward four proposals; real estate development and planning requirements must be configured for a large number of garage sales are very slow and there is a large backlog, parking cash too difficult to form a sunk cost. Investment estimation should take full account of the underground garage of the investment costs, and profit estimates included when other properties being sold; land value estimate, it is necessary to consider the general residential exemption policies, to avoid biased estimates of land value increment tax large, at the same time assess the full non-ordinary residential, commercial class value-added impact, to avoid land tax estimate is too small, resulting in estimated investment distortion.Chapter6is a fund-raising analysis. Describes the main elements of financing, principles, methods, and improper timing of the financing and financing risks and to avoid problems for analysis.Financing analysis is the use of funds under the project planning and funding sources to use the table, and the use of funding sources are compiled based on the project financing plan (ie, financing options). Financing activities should adhere to the principle of an appropriate scale, the principle of reasonable structure, proper timing of the principle, the principle according to the principles of financing. The way of financing:own funds, cooperative development, engineering contractors with funds contract, prepaid accounts, bank loans, real estate trusts, corporate bonds, issuance of shares.Financing should be in different stages of the project, select the appropriate mode of financing. Each financial instrument is virtually impossible to apply to our own. Different segments have different financing needs. We must determine the facts according to their own financing amount and mode of financing. Funding to solve the funding risk and raise cash of risk and take measures to avoid the risk of financing.Chapter7is the financial evaluation and analysis. Describes the certainty analysis and financial evaluation of the main elements of uncertainty analysis and to evaluate the financial results of the analysis concluded, while the financial evaluation to determine the error on the three main issues for analysis.Financial evaluation including certainty analysis and uncertainty analysis in two parts. Financial certainty analysis is mainly reflected in profitability and liquidity of financial indicators to assess two aspects of the analysis.Uncertainty analysis methods include break-even analysis and sensitivity analysis to identify susceptibility factors, revealing the extent of the level of risk factors, analysis of the uncertainty of the project in case of anti-risk capability and the ability to adapt to market changes, Financial evaluation findings should be based on the indicators of uncertainty analysis results, consider the impact of uncertain factors on the indicators of the extent of the financial indicators to determine the reliability and stability, the project’s ability to resist risks, while real estate projects multi-scheme comparison, to determine the financial viability of the project, to make investments in the financial viability of the final conclusions.Financial evaluation to determine the causes of errors often have the following three conditions:evaluation over a single, comprehensive risk analysis is not sufficient, the lack of comparative analysis of a variety of programs.Chapter8is a comprehensive case analysis. No more no identification. Through a comparative analysis of actual cases to come to the conclusion feasibility analysis.The main contribution of this paper:the contribution of this paper is to analyze the real estate market, technical, economic analysis of three aspects of analysis of five key issues, combined with practical work experience make recommendations accordingly, help to improve the feasibility analysis of the key issues validity of the results to help improve the quality of feasibility analysis for real estate investment decision-making more accurate information to avoid mistakes in investment decisions, causing heavy losses to the business community.The inadequacies of this article:Feasibility analysis involves the surface as relatively broad, this article discusses only the five key issues, feasibility analysis of the other problems is not possible to analyze the impact, and because of limited space and the depth of understanding of study of five key issues where there is not sufficient, these are the inadequacies of this article, these still need to practice in the future continue to be refined and improved.