| Summary: | 碩士 === 東吳大學 === 會計學系 === 95 === Real estate development is an important industry to us. Its performance is an economic indicator for other industries. It also affects many related businesses and employment opportunities. However, there is little research done on the finance aspect of the real estate business. This study, therefore, aims to analyze the factors that affect the profits of real estate investment projects, and through reviewing documents to develop a mathematical model and implement a sensitivity analysis. This study attempts to achieve following objectives: 1. for application, to improve performance of real estate investment projects, and to provide a mathematical model to real estate developers for reference; 2. for theory, to expand a new area on finance research, and to enhance applicability of academic research.
This paper has developed a mathematical model for profits of real estate investment projects based on the project cash flow, which can be an useful reference to real estate developers. Factors which affect the profit of a real estate investment project are sale price, project cost ratio, land cost, project sales rate, prepayment ratio, interest rate, and project duration. The performance of a real estate project is highly sensitive to project cost ratio and project sales rate. It also shows that result of multi-factor changes may differ from that of one-factor change. Therefore, real estate developers should consider the overall impact of related important factors on the decision they make. The study has provided not only a profit model to real estate developers, but also a reference to people involved in the real estate development business.
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