Research On Evaluation Of Older Apartments Investment Benefit Based On Extension Theory

With the continuous increase of empty nest families and families which consist offour parents and a young couple and one child, and the change of the concept ofpeople’s pension and the improvement of living standards in China, the demand ofapartments for the elderly pension which meet the physiological and psychologicalneeds of the elderly is rising rapidly.Because construction and investment in apartmentsfor the elderly has just started, senile apartments not only have market characteristic, butalso have social and welfare characteristics. So the benefit from the investment ofapartments for the elderly includes not only the direct economic benefit, but also thedistinct social benefit and the indirect benefit for the enterprises which invest theapartments for the elderly. However, the present method of the investment benefitevaluation for apartments for the elderly is still traditional economic evaluation method,which only attaches importance to economic evaluation. For one thing,the traditionaleconomic evaluation method ignores the big social benefit and the indirect benefit forthe enterprises which invest the apartments for the elderly, as makes many feasibleelderly apartment project be mistakenly regarded as not worthy of invest, and causesthat the investors mistakenly think the benefit of investment in the project is meager andthe investors lose enthusiasm of investing the project. In addition, the traditionaleconomic evaluation method is lack of technical evaluation such as the evaluation ofsupporting facilities,service and so on, as causes that many invests in apartments for theelderly which have been approved by government and have been in operation failbecause of the too upscale or too poor conditions. Most of the investment failures inapartments for the elderly are embodied by the lower occupancy rate,and theinvestment failures in apartments for the elderly mean that very limited funds into the apartment for the aged are not be fully utilized. Therefore, a comprehensive evaluationsystem of benefit of investment for the old apartment is urgent to be established.This paper is based on theory of investment efficiency and the extension theory ofapartments for the aged, makes investment project features of apartments for the aged asthe starting point,and also takes the macroscopic background of older apartmentsinvestment into account. By using the extension rhombus thinking pattern andexpanding analysis method, this paper establishes a comprehensive evaluation system ofbenefit of investment for the old apartment which consists of five first-level indicators,technical benefits, enterprise direct benefits, indirect benefits of the enterprise, thenational economy benefits and social benefits.The system not only can compensate theone-sided and single problem of Indicators in the previous similar evaluation system,butalso can more objectively reflect investment benefit of the elderly apartment projects;based on this index system and using the extension superiority evaluation method, thispaper establishes the extension evaluation model, and uses an apartment for the elderlyin Chanba area in Xi’an city a as a instance to demonstrate the practicability of themodel further.The purpose of this study is to provide the decision-making basis for the investorto invest the construction of apartments for the elderly, to provide a reference for thegovernment’ policy making, to further promote the investment and construction ofapartments for the elderly in China, to ease the growing contradiction between supplyand demand of apartments for the elderly, and to promote the establishment of aharmonious society.