REST0006 Property Development & Feasibility Analysis Term 2 2024

Java Python REST0006

Property Development & Feasibility Analysis

Term 2, 2024

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 records, for example, via email or WhatsApp, are 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 cannot submit the assignment.

> 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’ development with around 50 apartments and ground- floor re REST0006 Property Development & Feasibility Analysis Term 2, 2024 tail 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

It is assumed that the planning authority has given positive support for this development after reviewing the preliminary design and planning concept in the pre-lodgement meeting.

All inputs and other assumptions should be fully given and explained.

All explanations and arguments should be properly cited and a list of references should be provided.

REST0006 Property Development & Feasibility Analysis

Assignment No 3 Cover Sheet

Title: REST0006 Assignment 3: Development Appraisal Report

CHECKLIST (please tick)

□ Cover sheet

□ BE Plagiarism Form.

□ Length and format of the report:  10 pages/2800 words max.  (excluding the list  of references), Times New Roman or Arial font, 12-point, 1