MMP122 – Introduction to Property Development – Trimester 2 2019.
Assignment 2.
Development Proposal Report.
25% of unit assessment (approximately 2,000 words)
Context:
This assignment builds on your/a first assignment and the information discussed throughout the class (lecture), seminar (tutorials) and also the prescribed text; Property Development by Richard Reed & Sally Sims, 6th ed. You also may wish to draw upon additional resource material to assist in this assessment task.
Tasks:
There are five separate tasks to be undertaken for the assignment as follows;
1. Site Summary overview:
Use the information from your A-1 and re-provide in A-2 (only) the essential/key information from your site inspection, including the planning zones, overlays, dimensions, services on site, relevant authorities, council info, etc. For this task (1), assume that your reader already has a copy of A-1 and that this task is just to summarise the key points for them. The use of tables to summarise your information is encouraged for this task.
2. Highest and Best Use Assessment (HBUA);
Undertake a highest & best use (HBU) assessment for your selected site and proposed development by examining the four factors of HBU (physically possible, legally permissible, financially feasible and maximally productive). Ideally you will have 2-4 development proposals and all but one of them will be dismissed, leaving 1 proposal as the HBU option. A comparative table of the different proposals (across the 4 factors) would be ideal. A (one) SWOT analysis here would be ideal.
3. Proposed development:
By drawing on the information sourced via the preliminary site evaluation, ‘planning’ research, HBU analysis and market research conducted for your first assignment (A-1), identify and detail what you now propose to develop on the site. Additionally, you are required to include one paragraph about the state of (and trends in) the global and local economy.
To support what you are proposing you should include (but not limit yourself to) a detailed site and design plan (with different ‘aspects’), indicative floor plans including approximate building size, indicative images, car parking, etc. Remember to state the quality of development/ construction finish (eg: ‘medium’) and why you have selected this. Here is your opportunity to present to your client your vision for the site.
4. Financial Evaluation
Part One
You are required to detail & explain the:
- site purchase value,
- total construction cost, and
- development sale value upon project completion.
You should support your purchase and sales value(s) with some sales evidence. This can be obtained from (for example) www.realestate.com.au; www.domain.com.au; www.pricefinder.com.au or speaking with local estate agents.
Note: To determine your building cost you may wish to consult Cordell’s or Rawlinson’s building price books or the ‘Archicentre’ Cost Guide’ to arrive at total costs of the project.
If your site has an existing residence and you wish to demolish the dwelling, then allocate a notional sum of $55,000 for demolition.
Part Two
Once you have undertaken the above steps, you are now required to undertake a profit analysis. This profit analysis will be detailed in the seminar (tute) sessions.
5. Recommendations:
You will need to provide a thorough recommendation to your client, justifying your recommendation on your findings from the market analysis, the highest and best use (HBU) and financial analysis.
Length: Approximately 2,000 words.
Format: Report style. This assignment requires you to provide the assessor with a professionally written industry standard report.
Must include an Executive Summary that contains your recommendation, the residual land value, your expected profit and other key aspects from the report.
