DEVELOPMENT ECONOMICS (QSB 4223)

Topics:  

1. Introduction of Development Economics,
2.  Property Development, 
3. Property Investment, 
4. Development Appraisals, 
5. Factors in Property Development,
6. Development Finance,
7. Cost Benefit Analysis, 

This subject is lectured by Mr. Ho June Khai while the tutorial class is carried out by Ms. Dianne Kok Hui Wei. Both of them have been taught us from the previous semester, Building Economics [QSB 3214].

From the learning of previous subject, Building Economics; I have the basic knowledge of economics in building construction. In this subject, the topic that got me most interested is Lecture 3: Property Investment. According the National Land Code 1965, there are 3 main types of land use which are Agriculture, Building (residential & Commercial) and Industry.

It is based on the developer whether to make the land use to which sector and also what are the main objective for the development such as for use, investment or development. However, there are different factors and features of physical property will influence the developer to make decision on which sector to invest. Hence, it is not investing by only based on the developer interests but also have to consider different factors and features.

Besides that, in the only coursework, we were required to do analysis of the number of units for each type of houses can be built for the proposed development project, financial appraisal of the project using the Residue Method of Valuation, Cash Flow of the project based on “Sell-then-Build” concept and at last, we need to give personal comment on the viability of the project with a twelve percent (12%) cost of capital and also comment on the cash flow and viability of the project if based on a “Build-then-Sell” concept. Lecture 4: Development Appraisals is very useful for this assignment.

When we first started doing the project, we had the difficulties in calculating the number of units for each type of houses due to the mistake calculation of the total land area. On the next spot, we felt thankful for another group reminded us to find the details of “Schedule G”. Very thankful for the another group for giving us a hand when we were facing difficulties. It was not easy for us to complete this project due to the unfamiliar of doing projected cash flow. However, it was a good chance for us to do it so that in the future we at least have been practised from this coursework.

In this project, we were in good cooperation within group members because we discussed and produced the whole project together in the computer lab. Ultimately, our group achieved a successful outcome because we faced the difficulties and solved them together. Furthermore, this also shows that how good socialization could help you for solving problems. In the future career, it is good to apply this spirit to the road of success.