Feasibility study of property development projects.
Koo, Keck Fuah.
Date of Issue1998
Centre for Advanced Construction Studies
Property development has been portrayed as a complex, dynamic, and potentially high risk creative activity. While it involves the application of business, professional and technical skills of a high order of sound judgement at all stages, there are always factors which may be totally beyond the control of the developers. Each development has a distinct set of physical, market, legal, financial and engineering characteristics. The better the developers understand these complex set of attributes, the higher will be the probability that a better development decision will be made. In years of practical exposure in the property development industry, the author finds out that most of the developers do not think highly of those theoretical framework of a feasibility study commonly covered in the books and literature. In these developers' view, much of these theoretical works areunnecessary and unimportant. Instead, they will focus their study on certain areas which are substantially less emphasised theoretically. Such focus, as commonly accepted and done by the developers, are being regarded as comfortably sufficient for a feasibility study on a property development project. In other words, residential property developers used to perform only a very straightforward financial analysis, which is so simple to the extent that it merely takes a few minutes. In order to find out more details, the author carried out two case studies and an industrial survey to confirm the developers' collective views, considerations and emphasis on feasibility study.
DRNTU::Engineering::Civil engineering::Construction management