SEM 6 - DEVELOPMENT ECONOMICS

SEM 6 - DEVELOPMENT ECONOMICS

In this subject, I have understand the basic principles of economics and its link to the real world of construction and to develop an understanding of the whole process of property development. This was very interesting as Ms. Dianne has taught us about the current construction industry and the market. Next, I also understand the contribution of feasibility study in property development. Lastly, It was also brought to my attention on the overall mechanism of the finance system in the construction industry.

In addition, I would like to add that I appreciate the way Ms. Dianne teach in class. She makes the room light up and i am able to be very attentive in her class compared to the other classes I have this semester. In the end, I am able to understand more and able to relate the things I have study in class and compare them to the current issues in the construction industry.

We were able to give an analysis of the number of units for each type of houses that can be built for the proposed development project. Also, we were able to create a financial appraisal of the project using the Residue Method of Valuation. Lastly, a Cash Flow for the project based on ‘Sell-then-Build’ concept comprising of Monthly Cash Inflow and outflow taking into consideration the required sales projection and the Quarter-Yearly Cash Flow based on the above and Project financing required.

Individual assignment:

I was able to create a NPV of the project on a quarter-yearly basis and comment on the cash flow and viability of the project if it is based on a ‘Build-then Sell’ concept.