Title Financial Feasibility Study by Considering Risk Factors for High-Rise Development Project
Authors Chun, Young-Jun ; Cho, Joo-Hyun
DOI http://dx.doi.org/10.6106/KJCEM.2017.18.4.003
Page pp.3-16
ISSN 2005-6095
Keywords High-rise Building ; Skyscraper ; Supertall ; Development Project ; Risk Factors ; Financial Feasibility Study ; Stochastic Analysis ; Deterministic Analysis ; Monte Carlo Simulation
Abstract Forecasting cash flow is very important but is difficult and complicated to analysis in high-rise development projects. And An expected value which was forecasted on the early stage is likely to fluctuate due to uncertainties around such complicated huge project to consider the probable uncertainty. There are not objectified method which are able to cope with uncertainty of project, and feasibility study based on selected financial analysis does not include liquidity of cash flow. Through such a stochastic method, developer can cope with cash flow fluctuation and set up a financial plan. Also this study is meaningful for laying the foundation for high-rise development project and feasibility study as well as the suitability and accuracy of feasibility study. Analysis showed that NPV and IRR include residential apartments shows surplus revenue as return of apartments offset deficit of hotel and office. Factors influencing the project feasibility for high-rise development project are sales account of 1st year and annual vacancy rate of office.