Xi’an Concentrated Housing Construction Project Economic Analysis

As China’s economy has maintained sustained and rapid growth for many years,the real estate industry has acquired enormous development. However, in recent years,rising house prices have aroused the attention of all circles of the society. Centralizedhouses are the houses for those people whose houses have been pulled down for thesake of urban roads and other public facilities construction projects. Centralized houseshave effectively increased the house supply, which is important to meet the demand ofthe consumers and to lower house prices. The competition of current real estate marketis becoming increasingly fierce. How to effective operation of capital, reduce theinvestment risk and improve the competitiveness of enterprises through economicanalysis have become an urgent research subject.In this paper, document analysis and empirical research are used to explore theinvestment opportunity analysis, project development planning and project economicevaluation model of Xian centralized houses. First, the basic information of centralizedhousing project in Xi’an Qujiang New District is introduced with an emphasis on marketanalysis and the market positioning of the project. Then, the author analyses the basicconstruction conditions of the project, explaines the implement scheme and plan andexplore the strategy to realize the value of the project. And then the economic benefitsof the research project are discussed which proceed to project economic analysis. Thepaper focuses on the evaluation and analysis in the following three aspects: projectinvestment estimate and financing, financial evaluation, uncertainty and socialevaluation. Financial feasibility evaluation was carried out for profitability, operationalcapabilities and debt paying ability of the centralized houses. The author used break-even analysis and sensitivity analysis to investigate the investment risk of theproject and then proposes corresponding measures to avoid these risks.