FEASIBILITY study

[ EMT 253/development appraisal ]

MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

In General, A Market Analysis Searches For The Intersection Of Demand And

Supply That Will Create A Market For A Product At A Given Price.

Feasibility Analysis Tests Whether A Certain Product Will Meet Certain Financial
Or Social Goals In The Market.

1
 DEFINITION

“ A Preliminary Study Undertaken Before The Real Work Of A Project Starts. ”

“ A Document Of Comprehensive Analysis Which Provides Concrete Data And

Information On The Market, Technical, Environment, Administrative, Financial,
Economic, Social, Cultural, Politics Aspects Of A Project So That An Investment
Decision Can Be Taken On The Project.”
 OBJECTIVE FS
-To Study The Project From All Aspects And Angles.

-To Determine Whether The Project Will Achieve Its Objectives.

.
IMPORTANCE AND ADVANTAGES
- Are Done At The Early Stage Before Site Development.
- As Basis For In-depth And Detailed Design Of The Project.
- As A Basis For Monitoring Of Project Implementation.
- As A Measure To Evaluate The Project.
- As A Useful Guide To The Budgetary Requirement Of The Project.
 SCOPE
ECONOMIC FEASIBLE MARKET FEASIBLE
(Kajian Kemungkinan Sosioekonomi) (Kajian Kemungkinan Pasaran)

SCOPE & APPROACHES TO FEASIBILITY STUDY

SITE FEASIBLE DESIGN FEASIBLE FINANCIAL FEASIBLE

(Kajian Kemungkinan Tapak) (Kajian Kemungkinan Rekabentuk) (Kajian Kemungkinan Kewangan)
1. SITE FEASIBLE
Kajian Kemungkinan Tapak

1. Each site has its own characteristics and this would influence the suitability
of a particular development.
2. The physical structure of a particular piece of land can also affect the
building cost and value of a particular development.
3. Factor that would be considered in site investigation studies are;
3.1 Shape of site & topography
3.2 Site type & site condition
3.3 Accessibility
3.4 Legal factors
3.5 Planning factors
3.6 Surrounding development
 5
5km

5km 5km
2. SOCIO ECONOMIC FEASIBLE
Kajian Kemungkinan Sosioekonomi

1. Some of the factors that could affect the economic feasibility of a site are
the potential size of the market area, detailed characteristics of the market
and prospects for future growth in that area.
2. To determine the economic feasibility of any area with respect to housing
development, the following factors need to be considered;
2.1 Flow of residents
2.2 Flow of occupation
2.3 Flow of income
2.4 Economic resources of that area or region.
 POPULATION INCOME LEVEL
BLOK PERANCANGAN 2002 2005 2010 2015 RM100 RM210 RM351
MUKIM <RM100 -200 -350 -500 RM501> TOTAL
BELANJA 14,968 15,194 15,578 16,537
Pasir Panjang Ulu 102 127 443 204 56 932
LAYANG-LAYANG 3,700 3,744 3,821 3,975 Bota 506 1,071 1,326 959 447 4,309
BOTA 24,655 26,552 30,041 30,975 Pulau Tiga 198 295 364 153 45 1,055
LAMBOR KANAN 3,285 3,335 3,437 3,629 Lambor 167 320 42 426 245 1,700
Pasir Salak 125 189 204 128 29 675
LAMBOR KIRI 1,890 1,912 1,961 2,061
Belanja 383 1,080 818 440 264 2,985
PULAU TIGA 3,961 4,081 4,311 4,644
Setia 40 167 363 127 35 732
KAMPUNG GAJAH 7,466 7,693 8,085 8,582 Kampung Gajah 68 615 486 345 207 1,721
PASIR PANJANG HULU 2,972 3,017 3,110 3,276 Layang-Layang 191 525 409 115 54 1,294
PASIR SALAK 12,187 12,933 14,279 16,156 Bandar 85 136 295 185 175 876
TOTAL 1,865 4,525 5,250 3,082 1,557 16,279
BANDAR 5,485 5,633 5,921 6,378
% (11.5) (27.8) (32.3) (18.9) (9.5) (100)
KOTA SETIA 3,543 3,639 3,825 4,121
INCOME LEVEL OF OCCUPATION IN PERAK TENGAH(BANCIAN 2000-2010)
JAYA BARU 350 366 396 446
JUMLAH 84,462 88,099 94,765 104,057
KADAR PURATA - 1.42 1.47 1.89
PERTUMBUHAN
TAHUNAN (%)

SUMBER:KAJIAN RANCANGAN TEMPATAN DAERAH PERAK TENGAH 2002-2015

3. DESIGN FEASIBLE
Kajian Kemungkinan Rekabentuk

1. Feasibility at the design of the development needs to be carried out to

determine that the project planned is at its optimum.
2. The concept of highest and best use is applied here to ensure the maximum
return on the development.
3. At this stage analysis of the design of the development should produce;
3.1 Layout of the housing scheme
3.2 Types and design of houses
3.3 Stages of development that need to be carried out.
4. MARKET FEASIBLE
Kajian Kemungkinan Pasaran

1. This forms the most important features in carrying out feasibility studies.
2. It would be determine whether a particular project can be marketed or not.
3. In determining the marketability of a particular development, analysis of the
supply, demand and pricing needs to be carried out.
4. Marketability of a project would involve 2 types of investigation namely;
4.1 Investigation on the area to be developed.
4.2 Investigation on the types of consumers involved.
SUPPLY OF RESIDENTIAL UNITS BY TYPE IN PERAK TENGAH (2006-2007)
EXISTING STOCK

EXISTING STOCK IN PERAK TENGAH (2006-2007)

2,000
1,883
1,680 SINGLE STOREY
1,500
TERRACE
UNITS

SINGLE STOREY
1,000
SEMI-DETACH
DETACH
500
304 306
196 196
0
2006 2007
YEARS
COMPLETION OF RESIDENTIAL UNITS BY TYPE IN PERAK TENGAH (2006-2007)

COMPLETION IN PERAK TENGAH (2006-2007)

450
400 405
350 SINGLE STOREY
300 TERRACE
UNITS

250 SINGLE STOREY

200 203 SEMI-DETACH
150 DETACH
100
50 50
30
0 2
0
2006 2007
YEARS
INCOMING SUPPLY
 DEMAND ANALYSIS

Forecast Demand – Residential (K.Lumpur, Selangor & N. Sembilan)

-Pricing Category

Category / % Units of New Houses

(average per annum)
2001-2005
Low Cost 20 7,300
Below RM 50,000
Medium Low Cost 11 4,015
RM 50,000-RM 75,000
Medium Cost 53 19,345
RM 75,000 – RM 250,000
High Cost 17 6,205
RM 250,000 & Above
Total estimated average demand per year 36,500
(all categories)
16
Source : 8th Malaysia Plan
 DEMAND ANALYSIS
Housing Needs Projection In Selangor (2000 to 2020)
Housing needs projection in Selangor (Year 2000-2020)
Districts 2000 2005 2010 2015 2020
Petaling 303,378 280,756 362,399 434,948 496,747
Hulu Langat 230,116 208,897 247,728 293,375 326,448
Klang 149,748 149,557 201,140 263,839 344,457
Gombak 133,154 128,512 170,298 192,787 216,317
Kuala Langat 39,580 43,355 55,694 74,998 98,643
Kuala Selangor 33,649 38,576 56,027 81,080 105,809
Hulu Selangor 39,579 36,548 55,530 68,033 79,952
Sepang 22,519 28,594 43,886 69,318 92,257
Sabak Bernam 25,009 24,843 32,266 41,300 53,600
Total 976,732 939,638 1,224,968 1,519,678 1,814,230
% (+,-) 0 -3.80% 30.37% 24.06% 19.38%

Source: Kajian Rancangan Struktur Negeri Selangor

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5. FINANCIAL FEASIBLE
(Kajian Kemungkinan Kewangan)

1. The main objective of this study is to determine the profitability and the
viability of the project.
2. Information for this study are based on findings from site analysis,
economic analysis, market analysis and design analysis.
3. In carrying out the financial viability of a particular housing development
the following require attention;
3.1 Estimated cost of the whole development
3.2 Gross estimated value of the development
3.3 Structuring the cash flow
3.4 Estimating the profitability of the project
 RESIDUAL method
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

19
 INTRODUCTION

-Also known as Development Method.

-Suitable for valuation of DEVELOPMENT LAND.

-DEVELOPMENT LAND is land with potential for more intensive,

profitable and beneficial uses than the existing uses.

-Purposes of Residual Method

1. To determine the maximum value of the development land.
2. To determine the profitability of a development.
3. To calculate the ceiling cost for a development after the land was
acquired and the profit known.

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 HIGHEST AND BEST USE

- Highest and best use is a concept in real estate appraisal. It states that the
value of a property is directly related to the use of that property;

- The highest and best use is the reasonably probable use that produces the
highest property value. This use, the Highest and Best Use, may or may
not be the current use of the property.

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 CONCEPT OF RESIDUAL METHOD

GROSS GROSS
VALUE OF PRESENT
DEVELOPMENT DEVELOPMENT
PROPERTY VALUE OF $1
VALUE COST

sales Pre-development
costs
development
rental
costs
Post development
costs

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 GROSS DEVELOPMENT VALUE

-GDV are determined depending on the INCOME from the development in

the following ways:

a) If income is from sales of the development units.

- GDV is obtained by employing the Comparison Method by comparing the
current market value of comparable properties.

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 GROSS DEVELOPMENT VALUE

Example;
a site has been approved for the development of 160 units of single storey houses
and 190 units of double storey terrace houses. Market Studies indicated that current
market values of similar 1T terrace houses is RM 100,000/unit and 2T terrace houses
is RM 190,000/unit.
Jenis Harta Tanah Bil Harga (RM) Jumlah
Unit Se unit (RM)
Rumah Teres 1 Tingkat 160 @ 100,000 16,000,000
Rumah Teres 2 Tingkat 190 @ 190,000 36,100,000

GDV: 52,100,000
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 GROSS DEVELOPMENT VALUE

b) If income is in the form of rentals.

- GDV is obtained through the Investment Method.

25
 GROSS DEVELOPMENT VALUE
Example; a site will be developed with a 10 storey office development with a Net
Lettable Area of 5,000 sq m. Market studies has indicated that the office
space rental value of similar property is RM200 per sq.m per annum (net).
Market studies also shows that the rate of returns for similar properties is 8%.

Rental value : Net Lettable Area X Rental Value (Net)

: 5,000 sq.m X RM 200 per sq.m
: RM 1,000,000

Gross Development Value : Rental Value X YP to Perpetuity @ 8%

: RM 1,000,000 X 12.5
: RM 12,500,000

1 / i
26
 GROSS DEVELOPMENT COST
- merujuk kos – kos pembangunan yang ditanggung dan diperlukan oleh pemaju bagi
melaksanakan projek pembangunan hartanah. Kos -kos pembangunan yang
diperlukan terbahagi kepada tiga (3) bahagian iaitu:

Post Development Costs

Development Costs -Kos guaman

-Yuran agensi harta tanah
Pre- Development Costs -Kos pembersihan tapak
-Kos infrastruktur
-Kos penyediaan pelan susun atur dan
pelan bangunan -Kos bangunan
-Yuran profesional
-Kos penyediaan projek
-Kos landskap
-Yuran ukur dan pecah sempadan
-Faedah pinjaman
-Premium tukar syarat -Kos luar jangka

-Bayaran Pejabat Tanah -Keuntungan pemaju

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 KOS SEBELUM PEMBANGUNAN
1. KOS PENYEDIAAN PELAN SUSUN ATUR DAN PELAN BANGUNAN
Kos bagi penyediaan kedua-dua pelan iaitu pelan susun atur dan pelan bangunan akan dikenakan
oleh kepada pemaju sepertimana yang digariskan mengikut badan masing-masing.

2. KOS PENYEDIAAN PROJEK

Kos penyediaan projek sering diambilkira jika sekiranya kawasan tapak projek pembangunan
mengandungi penempatan setinggan.

3. PREMIUM TUKAR SYARAT

Apabila syarat kegunaan tanah ditukar kepada syarat kegunaan yang lain maka kerajaan negeri akan
mengenakan premium kepada pemaju. Contohnya kegunaan pertanian ditukar kepada kegunaan
perindustrian yang mana pihak pemaju akan menanggung kos tukar syarat tersebut. Jadual 11.1
menunjukkan premium tukar syarat yang dikenakan di negeri Perak.
Bil Jenis Kegunaan Bayaran Premium
1. Apa – apa jenis kegunaan pertanian RM 3,000 sehektar atau sebahagiannya.
2. Bangunan (Kediaman) 15% dari Nilai Pasaran
3. Bangunan (Komersil) 25% dari Nilai Pasaran
4. Bangunan (Kediaman Kos Rendah) RM 400 seunit
5. Industri 25% dari Nilai Pasaran
6. Pusat Perubatan, Pendidikan, Rekreasi dan Lapangan Golf 7% dari Nilai Pasaran
7. Tapak Perkuburan dan tempat ibadat 10% dari Nilai Pasaran 28
 KOS SEBELUM PEMBANGUNAN
4. YURAN PECAH SEMPADAN DAN UKUR
Setiap permohonan yang dikemukakan akan dikenakan bayaran atau fee sepertimana di dalam
Jadual 11.2 yang menunjukkan kadar bayaran ukur yang ditetapkan oleh Jabatan Ukur dan Pemetaan
(JUPEM).
Bil Keluasan Lot Hak Kediaman Hak Perdagangan dan
(RM) Perusahaan (RM)
(i) Setiap lot kurang dari 10,000 kaki persegi RM250.00 RM300.00
(ii) Setiap lot 10,000 kaki persegi atau lebih tidak melebihi 20,000 RM300.00 RM350.00
kaki persegi
(iii) Setiap lot 20,000 kaki persegi atau lebih tetapi tidak melebihi RM350.00 RM400.00
40,000 kaki persegi.
Bagi tambahan setiap 10,000 kaki persegi atau sebahagian RM100.00 RM120.00
darinya, melebihi 40,000 kaki persegi pertama.
(iv) Setiap sempadan dinding dua tuan yang diukur sepanjang RM150.00 RM200.00
kedua-dua belah

5. BAYARAN URUSAN PEJABAT TANAH

Setiap permohonan pembangunan akan dikenakan bayaraan sepertimana yang digariskan dan
ditetapkan oleh undang-undang tanah bagi setiap negeri di Malaysia.

29
 KOS SEBELUM PEMBANGUNAN
5. BAYARAN URUSAN PEJABAT TANAH
Setiap permohonan pembangunan akan dikenakan bayaraan sepertimana yang digariskan dan
ditetapkan oleh undang-undang tanah bagi setiap negeri di Malaysia.
Bil Urusan – Urusan Peruntukkan Borang Fee
Berkaitan (RM)
1. Pendaftaran dan pengeluaran dokumen hakmilik tetap 81(1)(d) 50.00
2. Pendaftaran dan pengeluaran hakmilik sementara setiap hakmilik 180 dan 183 50.00
3. Bayaran fee kelewatan mengambil dokumen hakmilik tetap selepas 3 90(3) 30.00
bulan bagi setiap hakmilik
4. a. Permohonan bagi pecahsempadan tanah bagi setiap plot 137 9A 50.00
cadangan
b. Permohonan bagi pecahsempadan tanah bagi setiap plot 137 9A 20.00
cadangan (unit kos rendah)
c. Permohonan bagi pecahsempadan tanah serentak dengan 124A 7D 50.00
perubahan syarat bagi cadangan plot pecahsempadan
5. Permohonan bagi pecahbahagian tanah, bagi setiap hakmilik 142 9B 50.00
6. Permohonan bagi penyatuan tanah, bagi setiap kes 148 9C 100.00
7. Pengeluaran hakmilik sambungan akibat dari kemusnahan atau 166(1)(a)(b) 120.00
kerosakan bagi setiap hakmilik (c)(d) & (f)
8. Pengeluaran hakmilik sambungan disebabkan oleh serahbalik 166(1)(e) 60.00
sebahagian dan pengukuran semula sempadan asal bagi setiap
hakmilik 30
 KOS SEMASA PEMBANGUNAN
1. KOS PEMBERSIHAN TAPAK
Pembersihan tapak projek perlu dilaksanakan terlebih dahulu
sebelum pembangunan infrastruktur dan bangunan dijalankan.
Pembersihan tapak ini merangkumi kerja-kerja seperti membuang
sampah-sarap dan batu-batu, merobohkan mana-mana bangunan
yang sedia ada seperti rumah setinggan, menimbus dan
meratakan tanah.

2. KOS INFRASTRUKTUR
Kerja-kerja seperti pembinaan jalan dan sistem perparitan, bekalan elektrik, telefon dan air
serta pembinaan kolam pengoksidaan adalah merupakan contoh-contoh kerja yang terlibat
di dalam infrastruktur atau prasarana. Dalam menentukan anggaran kos, jenis dan mutu
sesuatu bahan harus dipertimbangkan.

31
 KOS SEMASA PEMBANGUNAN
3. KOS BANGUNAN
Kos bangunan pula merangkumi semua perbelanjaan seperti
harga bahan-bahan binaan, kerja asas bangunan, pembinaan
kerangka dan bumbung, sistem perpaipan serta pendawaian
elektrik di dalam bangunan. Data-data dalam menganggarkan
kos bangunan boleh didapati dan diperoleh daripada kontraktor
binaan, jabatan kerja raya, jabatan penilaian dan perkhidmatan
harta (JPPH) dan pemaju perumahan sendiri.

4. YURAN PROFESIONAL
Sesuatu projek pembangunan yang berjaya memerlukan perkhidmatan daripada golongan
professional seperti arkitek, juru ukur dan jurutera. Yuran bagi golongan professional ini
dibayar berdasarkan kepada skala yuran yang telah digariskan mengikut badan-badan atau
pertubuhan masing-masing.

32
 KOS SEMASA PEMBANGUNAN
5. KOS LANDSKAP
Kerja-kerja penanaman rumput, bunga, pokok dan penyediaan kawasan untuk taman
permainan adalah antara contoh aktiviti yang terlibat di dalam kos landskap. Selain itu, kos
landskap ini juga dikira berdasarkan keadaan semasa ke semasa.

6. FAEDAH PINJAMAN
-Sumber pembiayaan projek pembangunan boleh diperoleh daripada modal sendiri ataupun membuat
pinjaman daripada pihak bank atau institusi kewangan.
-Kebiasaannya, pihak pemaju tidak menggunakan modal sendiri untuk melaksanakan projek
pembangunan tetapi lebih cenderung mendapatkan pinjaman bagi membiayai sebahagian besar kos
pembangunan projek.
-Umumnya, pinjaman bank yang dibuat oleh pemaju akan melibatkan kadar faedah. Kebiasaannya
kadar faedah yang dikenakan oleh institusi kewangan adalah di dalam anggaran dua hingga tiga
peratus lebih tinggi daripada kadar pinjaman asas ( BLR) atau Base Lending Rate.
-Pemaju juga akan meminumumkan kos terhadap pinjaman yang mana pembayaran tidak dilakukan
sekaligus pada penghujung tempoh pembangunan tetapi akan mengikut peringkat dan secara
beransur-ansur.
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 KOS SEMASA PEMBANGUNAN
7. KOS LUAR JANGKA
Kos luar jangka adalah bertujuan untuk menampung ketidakpastian di dalam
mentaksir kos semasa pembangunan. Terdapat beberapa faktor yang
menyebabkan ketidakpastian ini berlaku termasuklah:

1. Faktor kelewatan pembangunan yang disebabkan oleh perkara luar

jangka seperti perubahan cuasa semasa, kekurangan tenaga pekerja mahir
dan kekurangan sumber bekalan bahan binaan.

2. Faktor perubahan yang tidak dapat dielakkan. Contohnya perubahan dari

segi reka bentuk asal atau kerja-kerja tambahan semasa peringkat
pembinaan.

3. Faktor kesilapan di dalam mengganggarkan kos pembangunan.

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 KOS SEMASA PEMBANGUNAN
8. KEUNTUNGAN PEMAJU
-Keuntungan atau ganjaran adalah perkara yang dianggap perkara utama yang diambil berat bagi
pihak pemaju di dalam melaksanakan sesuatu projek pembangunan.
-Pulangan keuntungan ini dianggap sebagai satu balasan hasil daripada modal yang telah dilaburkan
dan pelbagai risiko yang dihadapi sepanjang perlaksanaan dan kejayaan sesuatu projek
pembangunan.
-Terdapat pelbagai cara di dalam membuat anggaran keuntungan sesuatu projek pembangunan iaitu:
Kategori Pembangunan Kadar
(%)
Berdasarkan nilai pembangunan kasar (NPK) 15 % hingga 20 %
Berdasarkan kos pembangunan kasar (KP) termasuklah 20 % hingga 30 %
nilai tanah
Berdasarkan kos bangunan 30 % hingga 50 %

-Kebiasaannya pihak pemaju menggunapakai cara berdasarkan nilai pembangunan kasar (NPK)
berbanding dengan cara berdasarkan kos bangunan kerana tidak mengambilkira elemen nilai sesuatu
tapak pembangunan.
35
 KOS SELEPAS PEMBANGUNAN
1. KOS GUAMAN
-Kadar bayaran bagi guaman boleh dirujuk berdasarkan kepada Majlis
Peguam.
-Kos guaman dibayar kerana perkhidmatan guaman di dalam penyediaan
dan pembentukkan perjanjian jual beli di antara pembeli dan pihak pemaju.

2. YURAN AGENSI HARTA TANAH

Peranan Ejen Harta Tanah Berdaftar diperlukan di dalam pemasaran
terutamanya di dalam mencari pembeli atau penyewa bagi harta tanah yang
telah dibangunkan. Yuran bagi agensi harta tanah telah ditetapkan di dalam
Akta Penilai, Pentaksir dan Ejen Harta Tanah 1981 (Akta 242) sepertimana
di dalam Jadual Ketujuh.
36
 Mendiskaunkan Baki Ke Masa Kini

“Mengapa perlu Nilai Baki didiskaunkan ke masa kini?”

37
Untuk menjawab persoalan di atas perlu merujuk kepada konsep
nilai baki yang mana baki yang terhasil adalah merupakan nilai
harta tanah tersebut selepas dibangunkan.

Apa yang dikehendaki ialah nilai harta tanah tersebut pada masa
sekarang.

Maka nilai tersebut perlu didiskaunkan ke masa kini untuk

mendapatkan nilai harta tanah tersebut pada masa sekarang.

38
 TEMPOH PEMBANGUNAN
Nilai harta tanah
sekarang Baki
(NPK – KP) x NK NPK - KP

NILAI KINI (NK)

Nilai Kini RM 1 (NK RM1) merujuk kepada merupakan jumlah yang patut dilaburkan pada masa kini untuk
memperoleh $1 di akhir tahun n dengan menggunakan 2 ciri – ciri utama bagi formula berkenaan iaitu Faktor
Kadar Faedah (berasaskan kepada faedah pinjaman dari institusi kewangan) dan masa. Formula bagi NK RM 1
adalah seperti berikut :-
NK RM 1 = 1
(1 + i)n
dimana,
i adalah merujuk kepada Kadar Faedah Pinjaman dari Institusi Kewangan dengan mengambilkira Kadar Asas
Pinjaman (Base Lending Rate – BLR)
n adalah merujuk kepada tempoh perlaksanaan Projek Pembangunan Hartanah 39
REAL ESTATE DEVELOPMENT finance
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

40
 INTRODUCTION
There are a variety of sources and methods of financing property
development both in the short-term or long-term.

The choice and availability of funding will depend on:

a) the nature of the scheme,
b) how much risk the developer wishes to share, and
c) the confidence of both financial institutions and the banks.
 Two forms of finance are required for property development:

a) Debt funding.
-loan from bank
-short term to purchase the land, finance the construction cost etc
-long term to purchase the building

b) Equity funding.
-partnership agreement
-example owner of the land joint venture and split the profit
CONTENTS OF MS & FS report
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

43
 1.0 INTRODUCTION
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

44
 1.1 Terms of reference

• Before being involved in a market and feasibility study, a consultant will normally
provide the term of reference (TOR), scope of works, completion period and study
implementation for checking by the client.

• The typical TOR normally includes a statement that undertakes to carry out an
independent market study on the proposed development for the purpose
mentioned by the client.

Example;

…..We have been instructed by MESSRS SEC DEVELOPMENT SDN BHD (hereinafter
referred to as “the client”), to undertake a market and feasibility study of their
piece of development land identified as Title Geran No. 50640, Lot No. 1045,
Mukim of Kajang, District of Hulu Langat and State of Selangor (hereinafter
referred to as “the subject property/the site”)…….

45
2.0 DESCRIPTION OF THE subject property
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

46
 2.1 Location And Site Plan
• The location analysis takes into consideration the site’s basic and
extrinsic attributes. Criteria such as its existing use, accessibility,
linkages, infrastructure facilities, site dimension and size, planning
restrictions and surrounding land use are highlighted and
analysed.

47
 2.2 Neighbourhood

2.3 Title Particulars

2.4 Public Services And Amenities

2.5 Planning Provisions

48
3.0 THE MALAYSIAN economy
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

49
3.1 The National Economy
3.1.1 Perak Economy
3.1.2 Site Economy

50
 4.0 DEMOGRAPHICS
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

51
 4.1 Population
Mid year population
2001 2002 2003 687,100 217,900
80,600 Selangor
Johor 2,826,500 2,891,800 2,959,400 913,300
Johor
Kedah 1,707,800 1,743,100 1,778,200 966,100 4,498,100
Kelantan 1,394,400 1,424,700 1,453,000 Sabah
1,372,500 Sarawak
Melaka 660,600 674,000 687,100 2,959,400
Negeri Sembilan 881,800 897,400 913,300 Perak
1,416,900
Pahang 1,320,600 1,346,100 1,372,500 Kedah
Perak 2,128,600 2,162,200 2,194,000 WP Kuala Lumpur
Perlis 211,100 214,500 217,900 Kelantan
Population by states (Year 2003) Pulau Pinang
Pulau Pinang 1,362,600 1,390,300 1,416,900
Sabah 2,667,300 2,730,100 2,795,100 1,453,000 Pahang
Sarawak 2,119,600 2,166,800 2,214,300 Terengganu
Selangor 4,286,300 4,388,900 4,498,100 1,501,800 Negeri Sembilan
Terengganu 922,100 943,200 966,100 Melaka
WP Kuala Lumpur 1,446,000 1,474,300 1,501,800 2,795,100 Perlis
WP Labuan 77,600 79,100 80,600 1,778,200 WP Labuan
Total 24,012,900 24,526,500 25,048,300
Source:Statistics Handbook Malaysia 2003, Dept of Statistics Malaysia. 2,194,000 2,214,300

Population By Age Group

Population Growth By Districts In Selangor (1991-2000)
Population Growth in Selangor by Districts (1991-2000) Population by Age Group (Year 2000) 0-14 yrs 15-64 yrs 65+
Annual
Districts 1991 % 2000 %
growth (%) 900,000
Petaling 633,165 27.56% 1,254,846 29.96% 8.9% 800,000
Hulu Langat 413,900 18.02% 915,677 21.86% 11.0% 700,000
Klang 406,994 17.72% 681,724 16.27% 6.1% 600,000
Gombak 352,649 15.35% 569,081 13.59% 5.6% 500,000
Kuala Langat 130,090 5.66% 204,255 4.88% 5.2% 400,000
Kuala Selangor 123,052 5.36% 170,198 4.06% 3.5% 300,000
Hulu Selangor 82,814 3.61% 157,936 3.77% 8.2% 200,000
Sabak Bernam 99,824 4.35% 119,535 2.85% 1.8% 100,000
Sepang 54,671 2.38% 115,624 2.76% 10.1% 0
Total 2,297,159 100.00% 4,188,876 100.00% 7.5% Petaling Hulu Klang Gombak Kuala Kuala Hulu Sepang Sabak
Langat Langat Selangor Selangor Bernam 52
Source: Housing & Population Census, Malaysia 2000.
 4.2 Occupation Profile
Employed Persons By Age Group (1998-2002) - Malaysia
Employment rate (1998-2002)

35.00%

30.00%

25.00% 15-24
25-34
20.00%
35-44
15.00% 45-54
55-64
10.00%

5.00%

0.00%
1998 1999 2000 2001 2002 *

Percentage Distribution Of Employed Persons By Age Groups- Malaysia (1998 to 2002)

Percentage distribution of employed persons by age group

Age Group 1998 1999 2000 2001 2002 *
15-24 22.50% 22.20% 21.90% 21.40% 19.80%
25-34 31.50% 31.70% 32.10% 31.70% 30.90%
35-44 25.10% 25.20% 24.60% 24.80% 26.00%
45-54 15.00% 15.10% 15.50% 16.20% 17.20%
55-64 5.90% 5.80% 5.90% 5.90% 6.10%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
* based on 2nd quarter labour force survey
Source: Yearbook of Statistics Malaysia, 2002
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 4.3 Income Levels

Household Income By Ethnic Group & Stratum – Malaysia (1995 to 1999)

Mean monthly gross household income by ethnic group & stratum.
Ethnic Average annual
group/stratum growth rate
1995 1997 1999 1995-1999
RM/month RM/month RM/month
Bumiputera 1,604 2,038 1,984 5.50%
Chinese 2,890 3,738 3,456 4.60%
India 2,140 2,896 2,702 6.00%
Others 1,284 2,244 1,371 1.70%

Malaysia 2,020 2,606 2,472 5.20%

Urban 2,589 3,357 3,103 4.60%

Rural 1,326 1,704 1,718 6.70%
Source: Yearbook of Statistics Malaysia, 2002

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 4.4 Household Sizes

Increasing No. of Households

But Household Sizes Are Shrinking in Klang Valley

1,40 6.0
0 1,24 0
5.1 0
1,20 4 4.8
5 5.0
0 0
4.2
1,00
Households ('000)

Persons per household

3 4.0
0 3.4 0
80 6 71
0 0 3.0
60 0
0 45
6 2.0
40 28 0
0 3
20 1.0
0 0
- 0.0
197 198 199 200 0
0 0 1 0
No. of Households Avg Household Size
Source: Department of Statistics

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5.0 INFRASTRUCTURE development in this area
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

56
 6.0 MARKET study
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

57
 6.1 Current Supply
Existing Supply
Selangor State Housing Stock (Existing Supply 2003)
Mukim/ Single 2-3 Storey Single Storey 2-3 Storey Detached Townhouse Cluster Low Low Cost Flat Service Condo/ Total
Type Storey Terrace Semi- Semi- Cost Flat Apartment Apartmen
Terrace Detached Detached House t

Petaling 26,950 102,983 1,327 4,563 13,309 508 1,296 13,047 41,632 32,234 1,425 49,412 288,686
Kelang 28,229 31,206 390 1,355 1,452 168 0 11,189 6,649 5,812 246 5,952 92,648
Kuala 5,945 2,905 6 30 414 0 0 6,194 160 120 0 260 16,034
Langat

Kuala 4,875 3,499 208 602 202 0 0 5,237 0 0 0 700 15,323

Selangor

Sabak 1,668 998 160 28 87 0 0 2,910 0 0 0 0 5,851

Bernam

Gombak 14,113 33,888 82 1,861 4,064 1,330 0 8,547 16,130 10,516 0 18,978 109,509
Hulu 12,809 15,950 1,361 84 4,684 0 0 7,995 17,007 10,382 0 1,341 71,613
Selangor

Hulu Langat 25,878 61,854 979 3,135 2,005 2,948 0 22,474 38,255 41,566 0 7,409 206,503
Sepang 2,923 5,740 500 262 635 148 1,220 4,942 680 6,682 60 4,161 27,953
Selangor 123,390 259,023 5,013 11,920 26,852 5,102 2,516 82,535 120,513 107,312 1,731 88,213 834,120

Source : Property Market Report 2003

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 6.2 Current Supply
Completion Supply
Selangor State Housing Stock (Completion Supply 2003)

Mukim/ Single Storey 2-3 Storey Single 2-3 Storey Detached Townhouse Cluster Low Cost Low Cost Flat Service Condo/ Total
Type Terrace Terrace Storey Semi- House Flat Apartment Apartment
Semi- Detached
Detached

Petaling 324 5,490 0 182 142 0 0 0 3,318 4,170 280 8,761 22,667

Kelang 501 2,438 0 92 85 0 0 207 2,274 991 0 833 7,421

Kuala Langat 756 297 0 0 0 0 0 0 0 0 0 0 1,053

Kuala Selangor 1,027 2,011 0 602 6 0 0 88 0 0 0 600 4,334

Sabak Bernam 26 44 0 0 0 0 0 0 0 0 0 0 70

Gombak 355 1,749 0 244 105 324 0 200 1,743 0 0 4,491 9,211

Hulu Selangor 461 1,808 178 0 356 0 0 286 1,882 606 0 73 5,650

Hulu Langat 116 6,440 0 296 26 383 0 0 3,800 1,625 0 336 13,022

Sepang 62 317 0 12 518 148 0 18 0 540 0 0 1,615

Selangor 3,628 20,594 178 1,428 1,238 855 0 799 13,017 7,932 280 15,094 65,043

Source : Property Market Report 2003

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 6.3 Current Supply
Incoming Supply
Selangor State Housing Stock (Incoming Supply 2003)
Mukim/ Single 2-3 Storey Single 2-3 Storey Detached Townhouse Cluster Low Cost Low Cost Flat Service Condo/ Total
Type Storey Terrace Storey Semi- House Flat Apartment Apartment
Terrace Semi- Detached
Detached

Petaling 324 14,368 0 1,083 185 869 0 0 15,293 6,926 508 32,043 71,599

Kelang 2,327 9,506 60 482 213 274 0 370 6,147 2,834 0 5,141 27,354

Kuala Langat 2,405 1,018 0 22 68 0 0 148 0 240 0 240 4,141

Kuala Selangor 2,720 5,566 134 847 1,019 0 6 570 2,839 96 0 4,448 18,245

Sabak Bernam 211 74 32 0 0 0 664 20 0 0 0 0 1,001

Gombak 355 3,397 48 1,300 28 374 0 164 3,743 560 160 6,890 17,019

Hulu Selangor 484 1,946 1,084 0 543 0 482 364 1,882 904 0 73 7,762

Hulu Langat 1,440 12,093 102 313 196 433 0 35 10,932 7,581 0 2,273 35,398

Sepang 1,876 3,147 920 58 1,386 224 0 168 200 1,189 0 2,379 11,547

Selangor 12,142 51,115 2,380 4,105 3,638 2,174 1,152 1,839 41,036 20,330 668 53,487 194,066

Source : Property Market Report 2003

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 6.4 Movements In Number Of Transaction
Number of Transaction % Change

Sector
2000 2001 2002 2003 2000 2001 2002 2003

Residential 40,227 41,773 36,116 36,978 10.1 3.8 -13.5 2.4

Commercial 3,005 2,900 3,301 3,399 11.3 -3.5 13.8 3.0

Industrial 2,733 2,369 2,315 2,497 3.4 -13.3 -2.3 7.9

Agricultural 3,278 2,784 3,177 3,273 -14.1 -15.1 14.1 3.0

832 1,493 1,508 1,649 12.0 79.4 1.0 9.4

Others 14 42 36 74 7.7 200.0 -14.3 105.6

TOTAL 50,089 51,361 46,453 47,870 7.8 2.5 -9.6 3.1

Source : Property Market Report 2003.

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 6.4 Demand Analysis

Forecast Demand – Residential (K.Lumpur, Selangor & N. Sembilan)-Pricing Category

Category / % Units of New Houses

(average per annum)
2001-2005
Low Cost 20 7,300
Below RM 50,000
Medium Low Cost 11 4,015
RM 50,000-RM 75,000
Medium Cost 53 19,345
RM 75,000 – RM 250,000
High Cost 17 6,205
RM 250,000 & Above
Total estimated average demand per year 36,500
(all categories)
Source : 8th Malaysia Plan 62
 6.4 Demand Analysis
Housing Needs Projection In Selangor (2000 to 2020)
Housing needs projection in Selangor (Year 2000-2020)
Districts 2000 2005 2010 2015 2020
Petaling 303,378 280,756 362,399 434,948 496,747
Hulu Langat 230,116 208,897 247,728 293,375 326,448
Klang 149,748 149,557 201,140 263,839 344,457
Gombak 133,154 128,512 170,298 192,787 216,317
Kuala Langat 39,580 43,355 55,694 74,998 98,643
Kuala Selangor 33,649 38,576 56,027 81,080 105,809
Hulu Selangor 39,579 36,548 55,530 68,033 79,952
Sepang 22,519 28,594 43,886 69,318 92,257
Sabak Bernam 25,009 24,843 32,266 41,300 53,600
Total 976,732 939,638 1,224,968 1,519,678 1,814,230
% (+,-) 0 -3.80% 30.37% 24.06% 19.38%

Source: Kajian Rancangan Struktur Negeri Selangor

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 7.0 S.W.O.T. analysis
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

64
 SWOT ANALYSIS

S.W.O.T. is an acronym for the words of;

Strengths [kekuatan]

Weaknesses [kelemahan]

Opportunities [kesempatan]

Threats [ancaman]

65
 SWOT ANALYSIS
The analysis enables an evaluation of the proposed project’s strengths
and weaknesses, opportunities to be explored and helps minimise the
proposed development’s threats from direct and indirect
competition.

Weakness Opportuni
Strengths Threats
es ties

Internal External
Factors Factors

Neighbourhood
Advertisement

Infrastructure
Tenancy Mix

Competitor

Economy
Financial

Location

Cultural
image

facility

Politic
Size

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S
LOCATION-
TRENGTH
CLOSE PROXIMITY TO MAJOR
INTERCHANGES-
W eaknesses
MAXIMUM VISIBILITY FROM THE • CONSTRAINTS IN SHAPE AND

ACCESS ROAD- TERRAIN OF THE LAND

NEARBY KTM’S COMMUTER STATION- • EXISTING IMMEDIATE

NEARBY BUS TERMINAL- SURROUNDINGS
LAND TENURE- • ACCESSIBILITY AND VISIBILITY
QUIET PLACE WITH GENERALLY GOOD • NEGATIVE PERCEPTION OF THE
VIEWS- LOCALITY
PROPERTIES IN BANGI ARE ATTRACTIVE
IN PRICE AND VIEWS-
GROWING POPULATION OF SKILLED
WORKFORCE WITHIN THE MULTIMEDIA
67
SUPER CORRIDOR (MSC)
O pportunities T hreats
• LOWER BASE LENDING RATE (BLR) • BUYERS’ MARKET IN THE
PROPERTY SECTOR
• ENCOURAGING GDP GROWTH FORECAST • STIFF COMPETITION
FOR 2004

• EFFORTS TO BOOST THE PROPERTY AND

CONSTRUCTION INDUSTRIES

• HOUSING NEEDS

• SOCIAL DEMOGRAPHIC OPPORTUNITIES

• POTENTIALS IN RESIDENTIAL COLLEGE

DEVELOPMENT

68
8.0 FINANCIAL viability study
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

69
8.1 Gross Development Value (GDV)

8.2 Gross Development Cost (GDC)

70
9.0 RECOMMENDATIONS and conclusion
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

71
9.1 Proposed Type Of Development

9.2 Target Market

9.3 Development Concept

72
 10.0 APPENDICES
[ EMT 253/development appraisal ]
MOHD FARID BIN SA’AD
ESTATE MANAGEMENT DEPARTMENT
FSPU,UiTM PERAK

73
 Appendix A: Location Plan

Appendix B: Site Plan

Appendix C: Photographs

Appendix D: Conceptual Layout Plan

Appendix E: Residual Model

74