Author(s)

Zeng Dandan, Chen Long

Corresponding Author

Zeng Dandan

Abstract

In the numerous industries of the national economy, the funds involved in real estate development are relatively large. However, at the current stage, the real estate developers in China have limited self-owned funds. Therefore, a large part of real estate developers uses project mortgages under construction as an important means of real estate project financing. Mortgage of construction in progress is of great significance for real estate developers to ease the tight funding chain and complete project construction on time. However, due to the fact that there are more uncertainties and more risks in construction in progress mortgages compared with existing mortgages, the evaluation of the mortgage value of construction-in-progress is particularly important. Based on the aforementioned consideration, this paper analyzes the risks in construction project mortgages, where the traditional valuation method to evaluate the mortgage value of projects under construction is used. Besides, a case of a project under construction in Xinshi Town, Baiyun District, Guangzhou City is presented in this study, to analyze the technical difficulties in actual value of the project under construction, and propose the corresponding countermeasures.

Keywords

Construction in Progress, Mortgage Value, Real Estate Assessment.