A Study on Risk management for social housing development by phases in First-tier cities in China

Abstract

This study aimed to draw risk factors of apartment development projects in the first-tier cities such as Beijing and Shanghai facing high costs and oversupply, and suggest solutions. The study found that development planning is set as a top priority in the development phase, and transportation infrastructure and accessibility were considered vital among others. Potential lack of business partners such as financial businesses and construction companies prior to development followed suit. In contrast, the significance of instability depending on shifts in taxation and interest rate policies was the lowest. Thus, it can be said that experts consider convenient transportation services and infrastructure such as school and medical institutions the most important. What is worse, ongoing disharmony between plan and market caused by economic change and delay in securing appropriate land could prevent developments. It is important to set up a economic conditions and interest rate monitoring system from the scratch, and set up economy database. As the last part, promotion, appropriate marketing, low sales, delayed sales, local expenditure, transportation, delayed maintenance and changing risk management were important to ensure efficient implementation of apartment development projects.