Hong Kong Real Estate Project Cost Management Analysis, Wolong Lake

The key factor of competition in china’s real estate is experiencing a series of changes from obtaining project approval to obtaining land, then to creating the products concept, to synthesizing the price and function of products, to promoting brand of the company during more than 20 years’ development. The maturity of consuming concept and the government controlling methods have also contributed to the mature management of land exploitation. It has been very hard for the real estate to get profiteering through imprescriptive model as the markets become mature gradually and the supervision of government is increasingly strict. Especially in recent years, the cost controlling concept of the real estate exploiting enterprises is waking up in the situation of depressing markets with the strengthening state macro-control and the increasing competition in real estate exploiting company. The real estate companies have realized that they won’t adapt to the curl reality if they only focus on taping the market. They should also place emphasis on improving the management efficiecy and cutting costs heavily which will be one of the core competitiveness of the further real estate enterprises. Those who don’t emphasize the cost control will be discarded ruthlessly by the market. Therefore, the strategic role of the cost management in real estate is appearing and it occupies the core status in the operating strategy. Hence, the management mode of the real estate enterprises must be transformed from the extensive form to the intensive form so as to promote the management performance. The cost management as key point in the running of the real estate must attract the high attention of the company because it is the basis of the steady markets and the sustainable development of the company.According to the issue above; I have made a further analytical investigation about the cost management in HongKong.The first part of the article introduces the living and developing situation that China’s real estate is facing so as to fetch out the meaning and purpose of the article. At the same time it introduces the developing trend and cost management theory at home and abroad and puts forward the main clue and method in researching the article.The second part states the principle, content and procedure of the real estate exploiting cost in different stages, based on the systematically description of the cost management theory, the character of the real estate exploiting projects and scrupulous analysis. Taking the Middle Port and Wo Long lake as examples, the third part makes further analysis in current cost management,decision of projects, design of the plan,the bid,the contract, the construction, delivery after accomplishment and accounting settlement. The fourth part makes an analysis for the cost managemental environment of Middle Port and Wo Long Lake and elaborates the suggestions and improving measures combining the theory of the cost of real estate development. Besides, it also puts forward the new thought of life circle in cost management, classification in cost management mode and the new cost management mode, come up with proper measures in cost management according to the different constitutional character in different exploiting stages and makes further analysis for the designing part which influences the cost a lot. Finally, it introduces a concept for the whole life circle of cost management that is managing the targeting cost in dynamic situation, caring out the cost controllment in the process, emphasizing on taking the targeting cost as guide and controlling the cost dynamically. The fifth part is the end which comes to a conclusion and puts out the shortage, further researching parts of the article.The article puts emphasis on the combination of practice and theory, aiming for seeking some practical valuable modes and methods in cost management of the real estate exploitation and offers some reference to those companies.