Study On Application Of Real Option Theory In The Investment Decision Of Real Estate

Our country listed enterprise widespread land hoarding phenomenon, this article try to explain from the angle of real option of real estate enterprise, the reason of land hoarding. Through the development of real estate investment decision-making method summary and comb, the author thinks that:real option of real estate is the sublimation of traditional investment rather than negative, the real options method to the superiority of traditional investment decision.Then the paper matched the real option and real estate investment features in the paper, combining with B-S option model constructs the real estate investment delay development of real option model, and using this model and the traditional decision-making method for comparing the value of real estate investment and development project, finally get the following conclusion:from the visual angle of real option value of the project is far greater than that of the traditional decision method of the project value; the underlying asset price s and perform x price changes influence on the real option value is more significant; without changes in the interest rate risk of the real option has little effect, can ignore.