Research On The Cost Control Of The Phase Ⅱ Project Of Donne Real Estate Residential Island

Along with China’s economic development, real estate industry has become an important economic pillar industry, which plays a very important role in national economic and social development. According to a well-off standard of social housing by 2020, we need the transformation from housing to meet the need to achieve a comfortable existence, basically "a household, per room, function of supporting facilities." There is a big gap between the goal and the reality, indicating a great space of the development of China’s real estate.At present, China’s strict real estate regulation and control policies, making the fastest growing real estate industry into the most brutal industry competition. Especially after 2014, with the real estate industry downturn, a lot of real estate companies have been on the verge of collapse, and many of the projects are in a dormant state. The real estate industry entered a comprehensive adjustment period.Donne estate was established in 1999, which is the earlier local private Real Estate Company. Donne Residential Island project covers an area of 250000 square meters, located in the Changchun Automotive Economic and Technological Development Zone, where the surrounding facilities is not mature. The Phase II Project covers an area of 110000 square meters, which was started in June 2014, and will be completed in October 2015.The Phase I Project cost 4650 yuan per square meter, and the average selling price is 5050 yuan per square meter, to achieve 8% of the profits. Due to the changes in the market, in order to ensure the sales pace, the company’s board decided to reduce the selling price as 4800 yuan per square meter, with a conservative estimated selling price reduced by 5%, while the requirements of 8% of the profits. The design department, the cost department, the engineering department as well as all sectors of the company are required to complete the task under the premise of quality assurance.In the current trend of a bad case of real estate, effective management is important for business survival, and cost control is the beginning of the fine management of enterprise. In the case of not broadening sources of income, reducing expenditure is necessary for the development of enterprises.This article will break the previous cost control on the real estate, which is limited to reduce the procurement costs and the project cost, meanwhile put forward the whole process cost control, including land, planning and design, bidding and purchasing, construction site, green landscape, marketing planning, financial and tax.Only to achieve the whole process of cost control, it can really play a role in controlling costs, and reduce costs without reducing the quality.