Chiam Jia Ern
Quantity
Surveying
DEVELOPMENT ECONOMICS
Lecturer : Sr Dianne Kok Hui Wei
This module has covered the development, roles and contribution of construction industry to our national economy. Not only that, the process in a property development and factors that influence the development process is also being introduced in this module. Mainly, the topics that were introduced in this module is somehow related to the module, Building Economics.
GROUP ASSIGNMENT
Based on the situation and information given, we were required to prepare the report which including :-
​
1) An analysis of the number of units for each type of houses that can be built for the proposed development project.
​
​
2) A financial appraisal of the project using the Residue Method of Valuation.
​
​
3) A Cash Flow for the project based on ‘Sell-then-Build’ concept comprising of:
i) Monthly Cash Inflow taking into consideration the required sales projection:
* Note: Tabulation should indicate monthly total, net monthly cumulative total and also quarter inflow. Table should be in A4 size.
ii) Monthly Cash Outflow taking into consideration the contractual requirements;
* Note: Tabulation should indicate monthly total, net monthly cumulative total and also quarter inflow. Table should be in A4 size.
This table will only reflect construction costs. Administration expenses should be reflected in the quarter yearly cash flow as below.
​
iii) Quarter-Yearly Cash Flow based on the above and Project financing required, if any (assume one lump sum repayment on completion of construction for land only. For the purpose of this assignment assumed no repayment is done for construction cost).
​
​
4) With a twelve percent (12%) cost of capital, tabulate and calculate the NPV of the project on a quarter-yearly basis. Give an overall analysis and comment on the viability of the project.
​
5) Comment on the cash flow and viability of the project if it is based on a ‘Build-thenSell’ concept. (Assume 100%)
Learning Outcome
In this assignment, we need to be able to prepare the presentation, approach to the calculations of construction cost and total development cost, including presentation styles and ability to answer questions. Besides that, I was able to put theories that I learnt during lectures and tutorials into implementation as I was able to understand the contributions in each role in construction industry and the major considerations made that would go into the capital cost.
​
Morever,this assignment help us to develop and reinforce our thinking and problem solving skills by thinking critically
in order for us to overcome each hurdles that we faced while accomplishing the project.When we face the difficult
things or problem,we can able to solve it.
​
Communication is the necessity for this assignment because this is a group assignment, we need to
communicate with other group member and discuss the details and contents of the proposal and presentation It can improve our communicated skills and promote our relationship.
