Investment Benefit Evaluation For Xiangxie.Luyuan

At present the real estate industry in our country is in a rapid development period,and there are many problems in this process. Now we are putting a research on theinvestment environment of Xiangxie.Luyuan, based on the analysis of the presentcommodity house market situation in Changsha city, especially the commodityresidential market demand elasticity and market price mechanism. In this paper wethink the commodity house’s demand is lack of elasticity, and it has "rigid demand"characteristic; The real estate belongs to a low concentrated oligopolistic market, andis developing rapidly towards the direction to marketization; The consumer’sspending habits, consumption structure and market expectations for the project impactthe expected revenue; the strong market demand and government’s monopoly to theland, reduce the external pressures of price competition on the real estate developers;For real estate industry, because of it’s capital-intensive characteristics, to keep theprices firm and pursuit the excessive profits, are becoming a dynamic power toconspire the price among the developers.In this paper, we make budget on costs, expenses, profit in accordance with theproject construction plan, and draw a static and dynamic financial criteria forevaluation. Then, we make a conclusion that the project’s financial criteria is fine, andit’s expected yield is considerable. It is in line with the project investmentrequirements. Through the project risk factors sensitivity analysis, we can concludethat the changes of the commodity house sales cause sharp movement in sale’s netprofits. This project belongs to a low risk but high return investment project; all risksexcept systematic risk are under control.We mainly use the quantitative analysis method to analysis the project’senvironment, benefits and it’s risk compensation in this paper. Through the project’sinvestment benefit evaluation, we conclude that the Xiangxie.Luyuan project hasconsiderable investment benefits, and is an ideal investment project.