The Risk Management Research Of Housing Price-contorl By Fmyproject

This thsis studies the risk-management problem within the development processof the housing price-control. The government is scaling up the affordable housingproject. The project not only expands domestic demand and promotes economicdevelopment, but also acts as one of the important livelihood projects. For real estatedevelopers, the analysis about the developing risk of affordable housing is now at apreliminary stage. In the affordable housing project, a real estate enterprise’sprecautions against development risks depend on its experience in commercialhousing development. However, the development and construction process variesgreatly between affordable housing and ordinary commercial housing. Thesedifferences are shown in project planning&design, building requirements, asupervision department, and so on. Thus, previous experience cannot completelydirect affordable housing development. Accumulating evidence suggests that riskmanagement directly affects the survival of the enterprise and its economic returns.Affordable housing profit is strictly controlled by the government.Sale prices are alsoset by the government and come without the market price’s indication. Those projectsneed to solve the housing problem of low and medium-income households, but alsoavoid developer losses. Affordable housing developer risk management will internallyreduce costs, increasing profit and improving the quality of decision making.Externally it will establish high enterprise prestige, support the government by solvingthe livelihood issue, maintain social stability and improve enterprise social efficiency.Therefore, the purpose of this study is to find countermeasures to solve the problemsfaced by enterprises during the development and construction process of affordablehousing.This thsis gives example analysis on FMY price-control housing. It performs riskassessment in the beginning of a project by: Analyzing profitability risk in the projectby applying the Break-Even Analysis; analyzing the risk’s type according to the stageof development by applying the expert evaluating method; identifying risk withineach aspect in the development of the price-limited commercial housing project;establishing risk countermeasures and a supervision approach. Reducing project riskcan ensure implementation of project construction as well as increasing enterpriseprofits. In short, risk management is an important and necessary part in the affordable housing project development process.