PROPERTY DEVELOPMENT CYCLES
Prepared By:
Assc. Prof. Sr. Dr. Azlina Md. Yassin
PROPERTY DEVELOPMENT
(BPE 34603)
CRITICAL FACTORS AFFECTING
REAL ESTATE INDUSTRY
1.
Economic growth (GDP).
2.
Government Policies, interest rates and
schemes.
3.
Population growth & urbanization.
4.
Household income growth.
5.
Infrastructures & catalyst development.
Determinant factor for Property Pricing
1. Market
2. Country’s Economy
3. Actual Cost level
4. Marketing Cycle
Determinant factor for Property Pricing
Market
Demand
Supply
Country’s Economy
Economic Growth
Purchasing Power
Level of Income
Determinant factor for Property Pricing
Stock Purchase
Price
Wholeseller’s
Price
Market Price
Marketing Cycle
Retailer’s
Price
Determinant factor for Property Pricing
PRICE FOR PROPERTY
Price
What does it refer to ??
Other Factors
% profit from cost
Reflects/reflected by
Market Value
Based upon Offer Price/
Market testing
Costs
•
Determined by:
(1)
Land costs
(2)
Construction costs
(3)
Infrastructures & Utilities (roads, electricity,
water, telephone, lifts, escalators etc.)
(4)
Professional (fees) Costs
(5)
Preliminary Costs (site & legal)
(6)
Preliminary Costs (site preparation)
(7)
Contingencies
(8)
Project Management Fees Etc.
(9)
Advert & Promotion
(10) Marketing/ Agent
(4) Professional (fees) Costs (based on
needs of Prop. Dev.
•
Architect
•
C&S/ M&E Engineer
•
Land Surveyor
•
Quantity surveyor
•
Lawyer
•
Marketing Agent
•
Town Planner
•
Valuer
•
Interior designer etc.
(5) Preliminary Costs
(site & legal)
Premium
Subdivision
Preliminary Survey costs
Planning costs
Development & Building Plan Fees
Etc.
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