"rambler Garden Garden" (phase Ii) Real Estate Development Project Economic Evaluation And Risk Research

Welfare housing system reform in China promotes the rapid development of realestate. Since2003, housing price has begun to rise significantly, until now. In thiscontext, a large number of real estate development companies engage in real estateproject development. Real estate development process is essentially a process ofinvestment, is an effective capital investment, and achieves value-added process.However, the real estate project development process is a complex task, and itsinvestment is a long time. The potential risks of real estate development projects arehuge. Therefore, the real estate development project feasibility analysis is particularlyimportant for the successful operation of the project and avoiding the risk.Combining the actual situation of " HuaYi Garden"(Phase II) project, using thetheory of feasibility analysis, economic evaluation and risk analysis, this paperdiscusses the real estate development project feasibility from two aspects. Firstly, thispaper presents the research background and research significance, reviews the domesticand foreign literature of real estate development project feasibility study, and introducesthe research contents and structural arrangement. Form the economic evaluation andrisk analysis, real estate development project feasibility analysis is described. This papernext briefly introduces " HuaYi Garden (Phase II)" real estate development project.Then, the paper does the economic evaluation on the " HuaYi Garden (Phase II)"real estate development project. This paper analyses the project’s profitability abilityfrom investment cash flow analysis, project capital cash flow analysis and other aspects.This paper also analyses the project’s liquidity, fund balance and the situation of assetsand liabilities. The results show that the "HuaYi Garden (Phase II)" real estatedevelopment project’s internal rate of is greater than the benchmark rate of return, andnet present value is greater than zero. So the " HuaYi Garden (Phase II)" can getpositive returns, has investment value, and the project’s balance sheet structure is good.Finally, this paper analyzes the " HuaYi Garden (II)" real estate developmentproject’ risks and project risks are identified, using the AHP method to calculate the sizeof project risk. On this basis, this paper proposes the risk-coping strategies at funding decision-making stage, land acquisition phase, construction phase and sales phase.The real estate development feasibility analysis method in this paper can provide areliable basis for decision making and references for development projects to reducedevelopment risk.