QSB 4223/4224  Development Economics

This module covers the development, roles and contribution of construction industry to national economy. Besides that, it is initiated with the introduction of the process in a property development and factors that influence the development process. Various techniques of development appraisal and source of finance available are also included in this module. Subsequently, it is then concluded with the important of market research to the overall development process and its impact of research to the development.

For our mid-term test, we are tested on property development and property investment economics (principles of investment). Besides that, our lecturer, Sr. Dianne Kok also tested us on the budget 2015 in construction or property sector of Malaysia which can apply the knowledge we have learned in the current economy. Overall, I think this mid-term test is quite hard for me and we need to attempt all of the questions within one hour.

Other than that, the group assignment requires us to prepare an analysis of the numbers of units for each type of houses, financial appraisal using residual method of valuation and the cash flows for the project based on “Sell-then-Build” concept. Besides that, we are also required to give an overall analysis and comment on the viability of the project on the NPV with 12% as well as comment on the cash flow and viability of project if it is based on “Build-then-Sell” concept. Throughout this assignment, I am able to develop a deeper understanding on the knowledge learned in lecture by applying them in the situations given in the assignment.

Throughout this module, I am able to calculate the developer’s budget by using residual method of valuation, execute the Cost-benefit Analysis in the early stage of investment proposal and valuation system, classify various source of finance available in the construction industry and identify the requirement in a quality market research. This is an intensive module for me, so I have to do a lot of practice especially on the calculation part.