Economic Evaluation Case of Real Estate Development Project

Author: Li Mingzhe, Editor-in-Chief
Publisher:
Publish Date: 2002-02-01
Features: To standardize the economic evaluation of real estate development projects, the Ministry of Construction promulgated the "Economic Evaluation Methods for Real Estate Development Projects" in September 2000, which went into nationwide trial implementation starting from the date of publication. To support the implementation of this method and help economic evaluation practitioners of real estate development projects understand and better use it, the authors collected several cases of real estate development projects and selected four of them. While preserving the main features of the original cases, they were carefully revised and compiled into this book for reference by readers. Additionally, the book includes relevant current documents on real estate development in the appendix for readers to consult. The four cases are not from well-known real estate development projects, and their development areas and investments are not large. However, all four cases contain the essential elements required for the economic evaluation of real estate development projects. They are distinctive yet general, with each case having a specific focus.
The "For-Rent-and-Sale Real Estate Development Project Case" focuses on introducing the necessary data, required analyses, and reports to be submitted for the economic evaluation of for-rent-and-sale real estate development projects. The "Mixed Real Estate Development Project Case" emphasizes the content of economic evaluation for mixed real estate development projects, which involve for-sale, for-rent, and self-operated components. The difference between this case and the for-rent-and-sale case lies in the inclusion of self-operated fixed-asset investments. After the project is completed, in addition to the commercial housing part being sold or rented, the developer utilizes the built assets for their own operations and earns profits from it. The above two cases focus on introducing the application of the economic evaluation method for real estate development projects. Currently, relevant authorities have not issued regulations on the content of feasibility study reports for real estate development projects. The "Feasibility Study Report for Real Estate Development Project Case" retains the economic evaluation content while providing reference material on the feasibility study report structure for readers. The "Loan Application Report Assessment Case for Real Estate Development Project" offers valuable references from perspectives such as engineering technology, market analysis, corporate credit, and risk analysis. This case involves a joint venture between Chinese and foreign entities, and readers should pay attention to the differences between the reports and those of typical domestic projects.
Due to the different focuses of each case, the writing styles are not entirely consistent. However, the key points of economic evaluation in each case remain the same. Readers should keep this in mind when using the book!