Generally, it can be explained from macro, meso and micro perspectives. The key to market research is to master a lot of first-hand market information. By listing examples of market transactions, convince your informants of your understanding of market prices, supply and demand, development trends, etc.

2. Economic benefit evaluation of the project

This is the most critical part of the project evaluation report. Here, we should make full use of the analysis and research results of other parts of the feasibility study report to analyze the economic feasibility of the project. This part generally includes cash flow analysis, capital source and application table (financial balance table) and loan repayment analysis. In cash flow analysis, it is necessary to analyze and calculate the financial internal rate of return, financial net present value and investment payback period reflecting the economic benefits of the project from two aspects: total investment and self-owned funds (equity funds). The table of sources and utilization of funds reflects the ability of the project to balance its own funds and is an important basis for financial evaluation. Loan repayment analysis is mainly to estimate the loan principal and interest of the project, reflecting when the project will start, what income will be used to repay the loan principal and interest, and how long it will take, so as to help developers arrange financing plans.

3. Risk analysis

Generally including break-even analysis, sensitivity analysis and risk analysis (probability analysis). The purpose of uncertainty analysis is to quantitatively study the influence of the main risk factors faced by the project, such as construction cost, sales price, rent level, development cycle, loan interest rate and buildable area, on the main technical and economic indicators of project economic effect evaluation, such as financial internal rate of return, financial net present value and investment payback period.

I hope it helps you.