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The Analysis of the Issue Related to the Feasibility of
Study the Real Estate Project on the Basis of the
Implicit Cost
Abstract: It is known that the feasibility study of real estate project plays an important role in
real estate development. Nevertheless, there still remains many problems in the feasibility study.
In this paper, the concept of implicit cost will be introduced, which will be used to analyse these
problems.Meanwhile, some useful strategies will be raised for these problems,which intends to
further improve the feasibility study of the real estate projects.
Keywords:real estate project; feasibility study; implicit cost; problems
Introduction
The feasibility study is the decision science has been used in project area, and the basic target is on the
basis of the comprehensive investigating and researching to identify a construction object whether have the
characteristics of progressive, reality and reliable in the whole prosess from previously project construction to
line operation. We also need to know those whether can pay off from the finance and the credibility in the
economy to give a big help for the investating decisions. It is real role that a framework to investing project ,
and is the key factors that can decide the project can be invested or not to give some supports on the project
decisions. The real estate is characteristic of accounting for huge financing, a long period relative to the
investing and easily influenced by the instable factors. Therefore, the the feasibility study is very important for
the real estate. However, currently we are more and more focusing on the explicit cost in the feasibility study
and ignoring the intangible cost. The intangible cost is , as opposed to explicit cost and hided among the total
cost of enterprise, caused by the decision maker characterized by lower diathesis, wrong concept, and the
deficiency of informations, coupled with the non-market factors to lead to the total cost increaseing direc
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