Real Estate Development Cost Control Problems And Countermeasures

The past two decades, with the rapid development of national economy and people’s living standards gradually improved. China’s real estate industry as a new pillar industry of the national economy has been very rapid development. Rapidly rising house prices, government policy on the changing real estate, The real estate industry has become the industry focus of consumers are most concerned about. With economic development in recent years, industrial restructuring, Adjustment of the real estate industry is also coming along, the market competition becomes more intense, the real estate industry is to bid farewell to the original era of huge profits, profits are returning to normal levels of society. To get the real estate development enterprises in the fierce market must root out the potential for more profits, reasonable and effective to reduce development costs, it is necessary to further explore the cost of real estate development control issues, which compete for the overall market and thus the future of real estate development enterprises. It is important for the individual real estate development enterprises in terms of survival and development.Cost control is one of the real estate development enterprises in key management activities, its success or failure will directly affect the real estate development, companies can have good economic surplus, it is one of the real estate development enterprises strong market competitiveness, but also directly related to business survival and development, so that the cost control management should be used as core work of the real estate development enterprises. In an increasingly competitive market environment, many of today’s real estate development enterprises have management control of the project development costs this or that confusion and problems. The real estate industry has entered a highly competitive era of intensive development work, the use of science and technology more advanced, Each professional division of labor is getting smaller, increasingly high level of professionalism. Real estate development companies need to further strengthen the precise control of the development costs in order to effectively reduce the cost of real estate development, and strive to maximize profits.The ultimate goal of the real estate development business survival is to maximize profit, profit is nothing more than "open source or cutting" actually both be implemented simultaneously. "Open source" called for by the full integration of the company’s existing resources, to enable them to maximize performance; "Cutting" is to take various measures to reduce the costs. Specific to a single real estate development projects, "open source" that is to find the maximum potential value of projects to improve the added value of real estate projects; "Throttle" that is reasonable and effective to control the development of the real estate project cost. The average profit margins of the domestic real estate development enterprises more than 20%, some even higher, but in recent years with the rapid rise in land prices. Increasing other construction costs, while prices slowed down, industry profit margins gradually decreased, cost control will become the core of the real estate development business and one of the key profit work. To use the least money to achieve the project planning of product quality, and further achieve their economic and social benefits double harvest, we must strengthen cost consciousness of all employees. Establish and improve cost management and control system, the development of rational and efficient systems and work processes, the whole process of all-round development of each item will cost fine management and control.