A Real Option Model Suitable for Real Estate Project Investment Decision

Xiao Ling Ke; Feng Qin Diao; Ke Jun Zhu

doi:10.4028/www.scientific.net/AMR.225-226.234

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HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 225-226A Real Option Model Suitable for Real Estate...

A Real Option Model Suitable for Real Estate Project Investment Decision

Abstract:

Real estate investment is distinctively different from others with its high input capital, long period of recycling, huge fluctuation of house price and high sensitivity to other factors. The traditional decision method could not make a rational judgment of the flexible management value in real estate project investment. With regards to the policy and market features of real estate investment in China, a real option model suitable for real estate project investment decision under high uncertainty in China is constructed. At last, a case of a real estate company is studied to test the real estate investment decision model.

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Periodical:

Advanced Materials Research (Volumes 225-226)

Pages:

234-238

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.225-226.234

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Online since:

April 2011

Authors:

Xiao Ling Ke, Feng Qin Diao, Ke Jun Zhu

Keywords:

Decision Model, Real Estate Investment, Real Option

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References

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