Public Housing Construction Project Economic Analysis

Housing has become one of the three major problems besetting the Chineseresidents in present society, and it is increasingly correlated with the stability andharmony of the whole society. Although the enactment and implementation of theaffordable housing and the cheap renting housing institution resolved housing problemsof low-income families, the housing problems for those intermediates that are unable topay affordable housing and not eligible for cheap renting housing has arisen. Theinstitution of public renting housing is an effective measure aiming at solving thoseproblems. The author made an economical evaluation of the public renting houseprogram in the light of real practice and analysis of both foreign and domestic relevantsituation.The author firstly investigated real estate market status and related politicalbackgrounds, and subsequently provided a project orientation based on the analysis ofSWOT program. In addition, the environmental feasibility has been proved via the studyof the program’s constructional condition, development project design, environmentprotection, energy and water conservation, occupational safety and health andconstruction process. Thirdly, economical feasibility analysis, namely project financialevaluation, including financial statement, was made under investigation consisting ofproject assessment on total investment and estimation on operation cost and rental profit.Finally, after uncertainty analysis and sensitivity analysis of two factors that impactedinternal project yield, the author deduced the risk factors that contractors should controlduring the construction process and made a technically practicable, economicalreasonable, publically embraced, policy supported, and both economically andenvironmentally beneficial conclusion.