Property Development & Feasibility Analysis
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Property Development & Feasibility Analysis
Assignment No 3: Development Appraisal Report (weighting: 50% of the total; individual work; to be marked out of 100%)
> Submission due: Tuesday, 13 August 2024, 11:00 pm
Please submit your assignment online (in Word or pdf format) via the course Moodle platform. Other forms of submission or submission rec
NOT accepted.
> Late submission: All assignments must be submitted by the due date/time.
UNSW standard late submission penalty will apply 5% per day, capped at five days (including Saturday and Sunday) after which students can
> Extensions for submission: Applications for special consideration regarding
an extension for assignment submission or examination are now centrally assessed by the Case Review Team.
Applications must be submitted online as soon as you encounter any problems before the due date. Application procedures can be found
via
https://student.unsw.edu.au/special-consideration
The Brief
Assignment 3 is individual work. This is a continuation of Assignment 2 (development controls) in which you can make
use
of
your
findings
on
key
planning
requirements
which
affect
the
development
design,
and hence its gross realisation, development costs and feasibility.
Use the selected site in Assignment 2, which is situated in metropolitan Sydney and can accommodate a ‘shop top housing’ developmen
retail shops. It should comprise 20% 3-bedroom apartments, 60 % 2-bedroom apartments and 20% 1-bedroom apartments. The site can
be a single land lot or an amalgamation of several land lots.
The development should be completed within 12 months, as planned by the developer.
Using the Hypothetical Development Approach, determine what should be paid for the site.
Then conduct a Discounted Cashflow Feasibility (DCF) Analysis to determine the following:
. Development time frame.: pre-construction (lead-in period), construction and post- construction (selling period)
. Market analysis of economic market conditions and comparable prices
. Potential gross realisation value
. Likely development Costs
. Finance cost (interest; assume 100% debt)
. Profit margin excluding and including interest
. Internal Rate of Return before and after Interest