Cost estimation of building individual cooperative housing with crowdfunding model: case of Beijing, China

The crowdfunding model is to quickly gather petty cash funds from the mass and to organize and develop construction projects spontaneously, and it might help the housing buyers to reduce the expense that originally paid to real estate developers in general develop models and probably cut down the housing price. This paper aims to estimate the building costs of individual cooperative housing with crowdfunding model. A reference cost model of commercial building is firstly constructed and estimated, according to which the costs of housing projects can be estimated and the sales price can also be decomposed into different parts. And then the reference cost of eight typical housing construction projects in major districts of Beijing in China, is calculated using the constructed model and compared with the corresponding sales prices. The results indicate that the proportion of total construction cost is 10–15 % of sales prices and building housing with crowdfunding model can save about 20–30 % of expense. And the spread of the individual cooperative hosing with crowdfunding model is expected to impose downwards pressure on housing price and help to solve the housing problems of medium-income and low-income families in major cities in China. Therefore, it is considerable to support the development of individual cooperative housing with crowdfunding model.