A Study Of The Project Risk Management Of Dezhou Sunshine New Field

With China’s growing economy and residents’ increasing incomes, the demand for investing real estate and improving houses steadily expands. Through the last two decades’ development, China’s real estate industry has accomplished remarkable achievements. As real estate is volatile, susceptible to policies, demanding in time and money, and regionally characterized, many uncertainties increase the risk of the projects. Especially, with the deepening reform of the housing system, the competition in real estate market becomes increasingly fierce, and the chances to succeed in investment through speculation reduce gradually. To ensure a project’s success, investors must conduct an effective project management that involves right policies, sound and standard operation and scientific investment. In this way, it becomes a key issue to solve for developers to pay attention to the risks in real estate development, to conduct related studies, and to effectively launch risk management to identify, analyze and control risks, and thus to achieve low risk and high yields.This thesis has seven sections. It opens with the introduction that synthesizes the research background and purpose, and then reviews current researches about their contents, methodologies, innovations and insufficiency. The second part is a synthesis of theories on real estate risk management, which introduces current theories on real estate risk management and reviews the process of such risk management. The third section is the background analysis of the Sunshine New Field Project. It conducts an in-depth examination of the project’s internal and external environment and its own features, as the following aspects are concerned:the construction conditions and its location, municipal facilities, basic information of the project, the SWOT analysis, and the project orientation. The fourth section effectively identifies the risks on stages of investment decision-making, land acquisition, and project construction, along with the causes of these risks. The assessment of these risks is provided in the fifth section, and the following section raises the solution and measure to control the risks regarding their different degrees in significance. The last part is conclusions and insufficiency.After analyzing profit and loss based upon estimated cost and revenues, plus an uncertainty analysis, I think the financial risk in the phase of investment decision-making is controllable. The main risks in the earlier and construction stage are about the delayed, unscheduled, or unqualified construction. According to the results, to control risks, the real estate companies should, first, realize the risk pre-warning mechanism, which helps to avoid the risk in the development of real estate project. Then, they should learn how to identity real estate risks and apply theory to practice. Moreover, a risk assessment and analysis index system should be accomplished to perform scientific assessment on the risks occurred in real estate development. At last, the companies should master risk control, and create the win-win situation by optimizing the companies’management, emphasizing the projects’quality, designing perfect program to meet the consumers’new demands, and launching fine projects of the new millennium. Practices have shown the feasibility to apply risk management strategies to each stages of real estate development, which has some instructive meaning for real estate enterprises to operate.