Analysis On Land Acquisition Decision Of Real Estate Enterprise

After more than 30 years of rapid development,China’s real estate industry has become one of the pillar industries.Due to its high correlation with people’s livelihood,the real estate industry has become a key target of regulation since the end of 2016.At the same time,with the outbreak of COVID-19 in 2020,the economic development has been seriously affected,and real estate companies have been faced more difficulties.So,how to Solve these difficulties is particularly important for the long-term and steady development of enterprises.The first step work,also the spending most work of real estate enterprises is land acquisition.For real estate enterprises whose development is based on land development,land acquisition will have a great impact on themselves.So how to optimize the decision-making process of land acquisition become especially important.Founded in 1990,Sichuan Languang Development Co.,Ltd.(BRC),once became one of the leading real estate enterprises in Sichuan,began to decline in2021.Although its deterioration is closely related to macro-control,the problems in internal management can not be ignored.Foshan Real Estate Project of BRC was acquired in April 2020 with a transaction value of 2.217 billion yuan,which is one of the major projects within BRC.As a project acquired at the end of the current round of regulation and on the days before enterprise decline,it could to become a classic case to analyze the internal problems of enterprises.This paper takes the Foshan Project of BRC Real Estate as a case to study,to reviews the land acquisition process of the project itsself,through PEST and SWOT analysis models,and specific methods such as literature review,interview and case analysis.First of all,in the judgment process of land acquisition of the case project,the rating standards for land acquisition of BRC Real Estate,the general situation of the real estate development in Foshan City,as well as the regional land transaction and housing transaction situation were sorted out,to provide bases for the subsequent analysis.Secondly,the macro environment represented by politics,economy,society and technology is and analyzed by PEST analysis model.Thirdly,the SWOT analysis model is used to sort out the strengths,weaknesses,opportunities and threats of the case.Above all,the problems of the case get verified through an additional financial simulation calculation.In the part of improvement suggestions,specific suggestions from three aspects are given: policy research,market analysis and enterprise management.The results of this study show that PEST and SWOT analysis are still feasible in land acquisition decision-making of real estate.However,attention should be paid to the comprehensiveness and effectiveness of information that we collected,besides neither the macro environment of the industry situation nor the particularity of local micro market should be ignored.In addition,although macro-control is an objective fact that cannot be changed by a single enterprise,it is necessary to adapt to the trend and make correct acquisition decisions in the face of that fact for long-term and steady development.