Feasibility Study of the Real Estate Project in Terms of Economic Value in Management

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Kasemsan Ruenklin
Sakchai Rakkarn
Podchanee Sriwichian
Jeerawat Plongmai
Jompop laor


The purpose of this research was to study the feasibility of the real estate projects to achieve cost-effectiveness in property management to reduce costs in the construction business. The model of construction with 8 houses simultaneously for unallocated housing project affected high investment.  Thus, mind mapping technique was used to analyze the root causes, including project location, population size, and community income. These factors contributed to housing stock accumulation in the project and delayed contractor work, resulting in cost, labor, and project management issues. The research proposed the planning and policy to changes in house construction and sales to mitigate the risks of high costs. The alternative model was suggested by completing a single model house as a specimen for customers, instead of simultaneously constructing eight houses. Moreover, one step was added to preliminary check credit of customers before applying for bank loans. The research demonstrated that the construction of eight houses simultaneously incurs higher costs compared to building one house at a time, with a cost reduction potential of 58.87%. Furthermore, if all eight houses can be sold within one year, the one-house building model still reduces business costs by 5.14% compared to the eight-house model.

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Research article