The Analysis of the Issue Related to the Feasibility ofStudy the Real Estate Project on the Basis of theImplicit CostAbstract: 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; problems1. IntroductionThe 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 directly or indirectly . The amount of economic benefits of the project largely depend on getting full knowledge of theintangible cost in the real estate.2. The Existence of the Questions Lied in the Feasibility Study on the Basis of the Intangible CostRecently, the real estate have got a big improvement in the feasibility study. As the main contents and methods, it have been normed and stabilized gradually to use in the project decisions. But that is fact that the feasibility study cannot play the role above mentioned in the real case. The worst case is that there is no the feasibility study before starting the work. And another events is that the feasibility study had been done, but the result was not fit to the requestions. The main problems are following:2.1. The Investor with Low Diathesis Did Not Pay More Attentions on itUntil now, a number of the investors did not get a clear clue and realize the importantance related to the feasibility study. They had made a decision whether building the real estate relied on their own wish, and reckoned the feasibility study was just a “payable paper” to submit to lending institution, investor and government. There is no meaning in the feasibility study because of carrying on is not thorough, focusing on the format. Therefore, the “feasibility study” is the aim that how to get a permission from the related department and a loan from the bank, so the data cannot be used to reflect the real conditions. The economic benefits o f the whole real estate project have decreased, even failed that was mainly ascribed to the invetor’s attitude, ignoring the importance of feasibility study. Those are called the intangible cost. The other factors is linked closely with calibre that a excellent decision maker should be characterized by determination, confidence, far-sighted.ect. When a favorite investing project lie in front of a investor, he must be confidence and determination to make a decision as soon as possible, or the problems relati ve to the economic benefits′ lost would be happened to create the intangible cost. Moreover, the investor should have the characters of far-sighted to consider the investing process, and not care the “gain and loss” in a small events to make a wrong decision. It is obviously that the high-calibre is an very important factor to the investor to avoid the intangible cost.2.2. The Feasibility Study Related to theConstruction Project is Mainly Completed by the Consultant Agency and Design Dthe Deviser Has Low-CalibreDepartment of construction entrusted by investor. It is possible that the accuracy largely depend on those institutions′ level controlled by the deviser’s calibre. Unfortunately, a huge number of devisers are lacking of the attitude on seek truth from facts. They have partially used the data to optimistically evaluate the market price movement. They also did not exploit the market survey in details to predict the market prospect; at the same time, they did not care about some faults, however, more lights shed in exaggerateing the advantages of technology and product that reducing the success rate of investing. On the basis of the devisers havinglow-calibre, the feasibility study cannot be completed by course of correct way and canonical process that the decision maker got a wrong judgement to result in losting the economic benefits, even the whole project’s depleting.2.3. The Analysis and Forecasting of the Market is not EnoughThe earning power of investing project is not only depending on the all kinds of available resources, but also relying on the current and potential requests needed by society. Currently, there are no more attenions concentrated on the market survey and forecasting in the feasibility study. A large numbers of data came from the related researchers’ experience and social relations. Even though they did a survey and forecasted the market trend, the results are more qualitative analysis than quantitative. The data measured by above process cannot really reflect the market condition and prospect. It is seemly like having good benefits, because of the fault existed in the analysis and forecasting of market to lead to the investing project has to face the condition “having a price but no sales”. Those can be avoided according to the reseacher’s endeavor.2.4. There is No Comparative among Every ProjectA larger numbers of reseachers pay more attentions on the single project than the comprehensive in the feasibility study. In some cases, they also analyse some projects at the same time but a particular one will be analysed more deeper than another analysed superficially. The decision maker have to accept the project choosed by reseachers on their wishes, and then the comprehensive researching changed into single will lose the meaning in the feasibility study. Because lack of the comparative project, leading to the economic benefits related to the finance will be fixed to lose the chance of getting more benefits from the market to create more intangible cost.2.5. Ignoring the Value of the Environmental AssessmentThere are many faults lies in the currently environmental assessment showed by the report of feasibility study. In some cases, there is few contents and the analysing superficially about the environmental assessment, because of there is no surveying the surroundings nearby the project or the assessment is not correct. It is obviously that those are contradiction with the strategy of sustainable development developed by our country. Moreover, there is no consideration between the project and sustaining ability of environment carried out by the investor. As a result, the developing intensity will exceed the loading capacity of environment near by the project to produce seriously environment contamination. This will increase the project later environmental protection costs, such as controling environmental pollution and strengthen the green, ect.There is a serious environmental evaluation work to be needed on environmental protection, and using real data reflect the revenue and expenditure to provide true evidences for the final decision. However, many of the feasibility study overlooked this respect that the project had been put more money in late to produceincreasely the intangible cost.2.6. Don't Pay Attention to the Analysis of the Sensitivity and Risk FactorsThe estate project itself has a high risk and investing, because of there are some uncertain factors in project implementation process. With these uncertainties, the investment project there is a risk, thus the uncertainty of the whole project is of vital importance. If the feasibility study of these risk factors were accurately analysed that will cause additional costs of the project.In practical work of the feasibility study , the analysis of risk is not enough or only stay in qualitative analysis, give a quantitative analysis. Though some of them to quantify, but either quantitative method unsuitable or quantitative results do not take seriously, not have a good understanding to project risk factors , thus make some project in concrete implementation appear of risk or risk factors change , led to increase costs and economic benefit greatly decreased, causing the recessive cost of production.3. Countermeasures of Feasibility Study3.1. Strengthening Ideological Education and Quality Education of the Decision MakerIn order to make feasibility study go smoothly, decision makers should be educated to fully realize the importance and function of the feasibility study. The ideologycal recognition and definite feasibility study effect, so that it can from the fundamental guarantee of feasibility study work smoothly. In addition, there must be necessary education to investors to improve the quality and professional skills of their own, so that when making decisions they can decisively and correctly make decision to reduce implicit costs and increase profits.3.2. Improving ability of the deviserInstitutions of training feasibility study professional must be established and perfected ,related departments should organize professional training regularly. Professional ethics education should is necessary to make professionals realize the importance of feasibility study; in the mean time , in order to decrease fault because of professsional skills deficiency and increase correctness of feasibility study professional skills must be enhanced. Establishing and perfecting of the feasibility study for the vocational education training employees of the system, by related departments groups regularly for feasibility research personnel's service training.3.3. Pay Attention to Market Investigation and Market ResearchIn the feasibility study phase, in order to avoid "negotiable without city" awkward situation and more implicit costs, feasibility study professionals should be ready for market research and market forecast work. This requires the relevant personnel take related work seriously, guarantee the correctness of market information to reflect a true market prospect. And earnestly analyze the market consumption levels, anaccurate grasp of market demand. In order to keep commodity to consumption group and to avoid implicit costs, feasibility study professionals must earnestly analyze the market consumption levels, grasp market needs and main consumption groups accurately, prepare for marketing positioning.3.4. Compare and Chose Comprehensive Investment ProjectFor a specific project there may be several different investment plan, after accurately study and compare of every investment project, the optimal project can be achieved. Through compare of different comprehensive investment project risks can be reduced, more profits can be achieved. That proves feasibility study plays a important role in reducing costs and making accurate decisions.3.5. Paying More Attention to Environmental EvaluationPay importance to environmental evaluation, abstractly analyze environmental impact. qualitative analysis must be made thoroughly if quantitative analysis is not suitable. During site selecting phase, in order to decrease later costs and implicit costs load capacity of environment around must be taken into account. When considering investment project, we should realize environment impact and economic profit to chose relatively environmental project and reduce implicit costs.3.6. Deepen Investment Projects Sensitivity and Risk AnalysisIn order to effectively prevent and control the risk, in feasibility study, we should strengthen the sensitivity analysis, pay great attention to digging the potential risk factors, such as investment environment risk, project construction risk, etc. And we should pay special attention to unfavorable factors and bad results, for example, implicit cost because of residents unmovement; Implicit cost caused by construction damage and extension of construction limits time limit because of local seasonal natural disaster. Therefore we should unify the quantitative analysis and qualitative analysis and give priority to quantitative analysis so as to prevent risk purposely and make scientific decisions. If sensibility analysis and risk analysis should be based on scientific data, strategic fault of project can be reduced greatly so as to reduce implicit accuracy.可行性研究对房地产项目隐形成本的相关问题分析摘要：据了解，房地产项目的可行性研究在房地产开发中起着重要的作用。
