Optimal Cost–Quality Trade-Off Model for Differentiating Presale Housing Quality Strategies

Abstract

Housing quality (HQ) has been a long-standing concern for both developers and homebuyers. Currently, HQ depends on the expected profit and subjectivity of the developers, and homebuyers only have a passive choice of whether to accept housing with such quality. Asian housing supply markets have largely adopted the presale housing system. Under this system, developers are able to verify future occupants before commencing construction, enabling them to provide customized designs and differentiated quality items in order to meet user demands and value. Consequently, HQ can be enhanced. A cost-quality trade-off model was developed using a genetic algorithm to help decision-makers identify the optimal HQ differentiation strategy that simultaneously satisfies homebuyers' expectations of quality and developers' expectations of profits. The findings showed that the presale housing system effectively improves HQ. A 6% increase in homebuyers' budgets can achieve the optimal quality improvement effect, while an 8% or more increase in developers' construction costs in order to improve HQ can generate an additional premium for the developers.

A Multi-Objective Mathematical Programming Model for Project-Scheduling Optimization Considering Customer Satisfaction in Construction Projects

“…Kebriyaii et al developed a MOMPM for the trade-off of the time, cost, and quality scheduling problems in construction projects considering the time value of money, which is decreased over a long period and is a very important matter [38]. Research on optimization in this area has been carried out previously, which can be mentioned [39,40].…”

“…Juan and Lin proposed a trade-off of the cost and quality model using a genetic algorithm [40]. Eirgash et al identified a model using a multi-objective learning-based optimization algorithm for project-scheduling optimization [41].…”