Analysis on the objective factors affecting real estate developers in their pre-construction planning for projects

Under the background of global economic crisis, the development of real estate in China has become harder and harder, and the success of the strategy plan for a real estate project seems quite important. The both prudent and practical strategy plan at the very beginning of a project lifecycle should become the focus which can decide the survival and development for developers at present. When the economy has entered a regulatory period, in which the prospects of business, finance, and government policy are not lucid, developers may be influenced by complicated factors during the phase of pre-construction plan for real estate projects since more risks may be encountered by the projects. Therefore, it is necessary to carry out investigations and analysis on all kinds of objective factors that could affect developer's plan. It's meaningful that objective factors influencing the pre-construction plan of real estate projects are made clear through the analysis of variables such as government policy, financing, technology, market, location and humanities in this paper. Questionnaire survey including 30 questions was conducted on developers in order to discover which variables are recognized as the most important. Data are collected and reliability analysis is done by SPSS 13.0. The means of each variable are calculated. Nowadays, financial problem is ranked first by developers rather than the factor of market demand. This indicates that Chinese developers have less concern about what their clients really want, which probably could explain the gap between supply and demand in the housing industry. This could cause a vicious circle. Obviously, the subjective factors affecting developers' pre-construction planning of real estate projects, such as the experiences and character of developers themselves are needed to be studied further.