University of Technology Sydney

12535 Development Feasibility and Modelling

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2023 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

This subject is designed to foster an understanding of residential property valuation methodology in the context of development site analysis and financial assessment. Students develop a strong theoretical and practical understanding of feasibility studies and how the key decisions relating to property development, financing structures, and financial reporting outcomes are made. This subject analyses the structure and key determinants of financial variables that affect property development projects, provides an understanding of property financing, and examines financial analysis techniques applicable to analysis of property development.

Subject learning objectives (SLOs)

On successful completion of this subject, students should be able to:

1. Use time value of money theory for financially related assessments
2. Assess the value of residential development sites using the direct comparison, hypothetical development and discounted cash flow valuation approaches
3. Demonstrate a critical perspective of valuations methodologies commonly used in undertaking the assessment of residential development sites

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

  • Demonstrate a comprehensive theoretical understanding of property valuation methodologies together with the capacity to prepare valuation assessments to a professional standard (P.1)

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

Teaching and learning strategies

This subject is delivered through an intensive block-mode schedule.

Teaching and learning strategies in this subject are orientated towards the practical application of contemporary property valuation approaches to assess the viability of property development opportunities.

Active learning opportunities are integrated with each learning block session via individual exercises and assessments. Quizzes accessed via Canvas provided an opportunity to reinforce learning from Block One. An assignment undertaken after Block One provides opportunity to demonstrate development of feasibility methodologies necessary to complete a financial assessment of a development opportunity.

Following many topics presented in class, students will be required to solve practical problem based scenarios that directly relate to the lecture content. Feedback provided during these sessions is designed to cement students' knowledge of the topics. Classes incorporate interactive discussion and collaborative and individual exercises.

Additionally, online quizzes, readings and reference material is provided to support the students understanding of the practical and theoretical framework surrounding this subject. Students are required to attend all classes to support their learning. Quizzes and reading materials are accessible from Canvas.

Individual feedback is provided for Assessment 2 by email, by return of your marked-up submission, clarifying any issues within your feasibility assessment. Assessment 3 assesses your understanding of content, with a mark provided via Grade Centre.

Content (topics)

The principal topics covered in this subject are:

  • time value of money theory applied to property related assessments
  • direct comparison approach for property development assessments
  • hypothetical development approach for property development assessments
  • discounted cash flow method approach for property development assessments

Assessment

Assessment task 1: In Class Test

Intent:

This QUIZ is designed to assess a student's learning resulting from Block 1 and following reinforcement via a series of online tutorials quizzes. Each tutorial allows unlimited attempts and provides diagnostic feedback following each attempt.

Objective(s):

This task addresses the following subject learning objectives:

1 and 2

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1

Type: Quiz/test
Groupwork: Individual
Weight: 20%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Demonstrate a theoretical understanding and practical ability to apply Time Value of Money 50 1 P.1
Demonstrate a theoretical understanding of Discounted Cash Flow and Hypothetical Development methodologies 50 2 P.1
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 2: Development Feasibility Modelling

Intent:

This assessment is designed to assess a students knowledge of and capacity to apply Hypothetical Development and Discounted Cash Flow methodologies by developing an excel model to complete the financial assessment of a residential development site.

Objective(s):

This task addresses the following subject learning objectives:

2 and 3

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1

Type: Report
Groupwork: Individual
Weight: 30%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Ability to demonstrate a comprehensive practical understanding of property valuation methodologies. 50 2 P.1
Ability to demonstrate a comprehensive theoretical and practical understanding of property feasibility methodologies. 50 3 P.1
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 3: Final Exam

Intent:

The purpose of this assessment is to assess student understanding of the subject content.

Objective(s):

This task addresses the following subject learning objectives:

3

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1

Type: Examination
Groupwork: Individual
Weight: 50%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
The ability to demonstrate a comprehensive understanding and ability to apply Time Value of Money theory, as well as the Direct Comparison, Hypothetical Development and Discounted Cash Flow methodologies to assess the viability of residential development sites. 100 3 P.1
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Minimum requirements

The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.

Recommended texts

Essential learning material is available from the Canvas site for this subject

References

Referencing: In the Faculty of DAB, referencing is done using the APA 7th edition referencing style.
Referencing is a standardised method of acknowledging sources of information and ideas that you have used in your assignments or research, in a way that uniquely identifies the source. It is not only necessary for avoiding plagiarism, but also for supporting your ideas and arguments.
The UTS Library has developed additional support materials to guide students in the use of the APA referencing style.

Further support may be accessed via visiting the following link: https://www.lib.uts.edu.au/help/referencing/apa-referencing-guide

Other resources

Students will need to a Sharp EL738F or EL738XT financial Calculator.