Study On The Re-development Alternative Selection Of CHNTIDA Villa Area

Chinese estate industry expands rapidly with an appreciable scale for afew of years and steps in a steady-going date relatively to the continuousdevelopment of economy and reinforcement of the government'smacroeconomic control. Changchun locating in Northeast China is animportant central city of economy, politics and culture. Especially forChangchun National High-technology Industries Development Area(CNHIDA), in recent years, it has become a hotspot of real estate investmentby right of its location advantages and humanity environment. Since thedevelopment to CNHIDA villa area is active, the study on the developmentmode, development scale and economic benefits of the re-development isvaluable on theory and instructional for the villa area development in practice.Real estate development is characterized by its huge investment, longcycle and being affected easily by factors of politics, economy and industrycriterions. So, we should analyze the factors before making the reasonabledevelopment scheme. The policy, government's macroeconomic control onnational economy, is carried out while estate industry is the emphases of it.Government starts macroeconomic control from land supply, finance, revenue,industry structure adjustment and market criterion to stabilize price of housingresidences and land and to protect the healthy growth of real estate. Realestate developing trend is to enhance housing residence industrialization anddevelop land-saving housing residence. Thus, to save land and to plan inreason will become more and more important. Real estate development shouldrun according to the city planning and the planning district in future shouldinduct the market. Infrastructure conditions, the key factor for real estatedevelopment, affect the development result while the consuming community,cost of development and plot ratio factors are decisive for the marketcompetitiveness of the real estate development projects. For the aboveconsiderations, re-development to CNHIDA villa area is acutely necessary.There are three re-development models to CNHIDA villa area for choice.One is re-development mode that is to reconstruct previous buildings to meetnew need for sale. One is small tall building mode that is to re-exploit to builtsmall tall residential buildings. The last is mix mode that is to re-exploit tierbuildings and small tall residential buildings with a certain ratio.The way of development mode excellently has straight effective to thechoice of development mode scientifically and reasonably .To make thechoice reasonably, scientific ways should be taken. Given the effect factors toreal estate development, Multi-level Factor Analysis Process (MFAP) is usedin this article. The process combining with quantitative and qualitativeanalyses is effectual and aims at planning issues which are wide system,multi-level and multi-goal. According to the MFAP principles to confirm theclose factors about the development model of the project, we can get theMulti-level Factor Analysis Frame (MFAF) and judging matrix to calculatethe combinatorial weighted index of each development model to be chosen.And then we can get the reasonable development model.The sustainable development of economy and society affect estateindustry development basically and estate industry development is based uponlocal economy development. Changchun`s economy goes well correspondingwith the national economy. In 2006, estate industry will grow well and severalmunicipal infrastructures in Changchun will speed the local estate industry.Enterprises` strategies and project location will be more rational. Commodityhouse location is the mid market with mid product but the excellent service.We can know that the quantity of commodity houses in Changchun that havebeen sold out increases in recent years according to the statistics. Useingtrend extrapolation to forecast the quantity of commodity houses that havebeen sold is reasonable. Though tier buildings and small tall residentialbuildings have their own many advantages, people still like tall residentialbuildings. Especially in the status lacking land, tier buildings will become rareand small tall residential buildings will be familiar to people and be acceptedat last. The market ratio of tier buildings and small tall residential buildingsincrease gradually. The ratio in 2006 is calculated with weighted averagemethod. According to quantity of commodity houses in Changchun and themarket ratio of tier buildings and small tall residential buildings, we canforecast quantity of tier buildings and small tall residential buildings that canbe sold in Changchun in 2006.Considered the advantages, shortcomings and price strategy intensively,by experts meeting process, the project development scale is made. Given thelimit of land lackage, three schemes are made. One is to maintain thedevelopment area of tier buildings and adjust the development area of smalltall residential buildings according to the limit of land lackage. One is tomaintain the development area of small tall residential buildings and adjustthe development area of tier buildings. The last one is to maintaincorrespondence between the development configuration of tier buildings andsmall tall residential buildings and configuration that experts forecast. And thedevelopment area of tier buildings and small tall residential buildings areadjust at the same time.Investment estimation of project and fund raising is the precondition forfinance evaluation. Corresponding national policies and the industry criterionsinvestment, estimation of this project is consisted of exploit cost estimation,management cost estimation and sale cost estimation. Then we can know theneed of capital. In light of self owned funds to calculate the capital quantity,term and benefit to finance from financial institution, the total cost can be get.The result of project finance evaluation is the basis to estimate feasibility.According to finance evaluation process and total development cost of theproject, calculating the income and additional tax and value-added tax of land,the profit and cash flow of the three schemes can be calculated. Then financenet present value and internal rate of revenue can be reckoned. The finaldevelopment scheme can be get after the comparison to the three schemes.