17125 Development Feasibility and Modelling
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Credit points: 6 cp
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. This subject analyses the structure and key determinants of financial variables that affect property development projects 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 approach |
| 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)
- Apply a comprehensive understanding of property market drivers and key risk analysis techniques applicable to contemporary industry based practice (P.3)
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
Learning activities will continually reinforce the learning content students work through each week. A case study enables students to compare the results of different valuation approaches, and to develop a sophisticated hypothetical development & discounted cash flow mmodels based on the development process. The emphasis is on "learning by doing," and students will build their own spreadsheet model of the development feasibility analysis. Zoom sessions will provide hands on guidance through the major assignments. Guest speakers will contribute industry perspective.
Content (topics)
- 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: Time Value of Money
| Intent: | Consolidate knowledge of time value of money via online quiz | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: | Online Quiz | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Case Study Hypothetical Development
| Intent: | Develop Hypothetical Development Model on Microsoft Excel | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 and P.3 | ||||||||||||
| Type: | Report | ||||||||||||
| Groupwork: | Individual | ||||||||||||
| Weight: | 30% | ||||||||||||
| Criteria: | Functional Excel Hypothetical Development Model | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Case Study Discounted Cash Flow Model
| Intent: | Develop Discounted Cash Flow Model on Microsoft Excel | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1, 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 and P.3 | ||||||||||||||||
| Type: | Report | ||||||||||||||||
| Groupwork: | Individual | ||||||||||||||||
| Weight: | 50% | ||||||||||||||||
| Criteria: | Functional Excel Discounted Cashflow Model | ||||||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Minimum requirements
Students must achieve at least 50% of the subject’s total mark.