Research of Real Estate Project Risk Management

Abstract: The real estate industry has become a pillar industry of national economy, however,due to the short history of the development in real estate, the whole system is not yet perfect, without fully understanding of the existing problems, and especially is lack of effective management. The product of real estate is a kind of special commodities, the development of real estate project is a process of production by unknown demand forecasting, and real estate is an industry always accompanied by uncertainty, which exists in all stages of the project development, thus it’s in urgent need of researches into the management of real estate development projects.This thesis starting with an overview of China's real estate development, though collecting a large number of relevant information, it makes a summary on four aspects of the real estate industry, including: the present situation of estate development, the periodicity of estate development, existing problems of estate development, as well as operating status and gaming of property enterprise. Then, with the application of current management theory, it identifies and measures the development of real estate project according to its characteristics, and it comes to an action analysis of real estate development. In order to lay a theoretical basis for a detailed analysis, the progress is step by step. Thirdly, it introduces three methods of analysis. They are investment breakeven, investment sensitivity, and probability. And combining with cases, it makes a specific analysis to testify the feasibility of this method. Finally, in the hope of providing some references for other projects, it proposes several means of management…
Key words: Real Estate; development project; uncertainty; risk management