Study On The Risk Management And Control Of Real Estate Development In Jingjiang Real Estate Yangtze River

Chinese Realty Industry stared from the late1980s. During more than20years of development, it encountered the Asian financial turmoil, hampered by several The State Macro-Regulations, as represented by Eight Regulation Measures in real estate market, and also affected the US subprime mortgage market crisis which spreading around the globe. After so many twists and turns, the real estate comes to grow mature. As market of the real estate becomes increasingly saturated and competition gets gradually hot up in first-tier cities, more and more developers enter second-tier and third-tier cities and choose third-tier cities as new point for economic growth.As a professional real estate development company which already set up19years, Jing Rui already obtained much experience in the development of marketable residential housing and founded its own complete operation&development system and control&management model. In2005, Jing Rui conducted the first round of strategic planning since its foundation. This planning clearly defines Jing Rui to "Become National Residential Developers " and enters second-tier and third-tier cities in an all-round way. The Yangtze River Delta is, no doubt, the most developed, most competitive and most vigorous place. Taking full advantage of The Yangtze River Delta becomes one option for Jing Rui. The modes of control&management by group and operation by the project companies as second class control&management system begin to take shape. However, marker difference and complex changes bring a lot unexpected events to Jing Rui’s strategic implementation and consistently test operator’s wisdom and courage.Considering the position now in the real estate for Jing Rui and based on his control&management strategy and two-class of operation models, Author of this paper reveals the result that Jing Rui encounters so many misfits and frustration when dealing with the market of third-tier cities in The Yangtze River Delta, and also points out the great risks when this company carries out strategies under two-class of operation models. On this basis, the author further analyses the reason why those risks come into being and the likely consequence. At last, the author provides suggestions on management and implementation when dealing with those risks.Usually, researches on the risks during the real estate management mainly stars from each stage of project operation. But this paper primarily focus on the research of black spot and risk point while Jing Rui, as a two-class control&management grouped enterprise, is managed under the cooperation of group control and project operation. This paper aims at Jing Rui Realty. It is intended to point out the existing risks during company’s operation and management and provide practicable improved-suggestions. This paper does not popularize the conclusions to all real estate enterprises. This part will be deepened in later research.