International Conference on Construction and Real Estate Management 2016
Applied Research of the Real Option Theory in Real Estate Investment Decisions
Publication: ICCREM 2016: BIM Application and Off-Site Construction
ABSTRACT
The real estate investment decision is the key to the whole process of real estate development; the rationality and scientificity of that will influence directly the development of the investment project. With the real estate industry gradually maturing and the competition becoming increasingly fierce, the investment decision makers put more and more emphasis on the method of analysis and research. Firstly, this paper based on the analysis of the theory of the traditional real estate investment decision-making and real options investment decision-making points out the defects in traditional real estate investment decision method. Secondly, put the traditional method that net present value and real option pricing model that Black-Scholes for a comparative analysis, the results show that the real estate investment decisions are more rational and accurate under the perspective of real options.
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ACKNOWLEDGMENTS
Foundation item: Supported by MOE (Ministry of Education in China) Project of Humanities and Social Sciences (12YJA790048).
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Information & Authors
Information
Published In
ICCREM 2016: BIM Application and Off-Site Construction
Pages: 1126 - 1132
Editors: Yaowu Wang, Ph.D., Professor, Harbin Institute of Technology, Mohamed Al-Hussein, Ph.D., Professor, University of Alberta, Geoffrey Q. P. Shen, Ph.D., Professor, The Hong Kong Polytechnic University, and Yimin Zhu, Ph.D., Professor, Louisiana State University
ISBN (Online): 978-0-7844-8027-4
Copyright
© 2017 American Society of Civil Engineers.
History
Published online: Aug 14, 2017
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