12535 Development Feasibility and Modelling
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particular session, location and mode of offering is the authoritative source
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Subject handbook information prior to 2020 is available in the Archives.
Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksThere 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)
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 UTS Online 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 UTS Online.
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: | 30% | ||||||||||||
| Criteria linkages: |
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: | 20% | ||||||||||||
| Criteria linkages: |
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: |
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.
References
URBAN PLANNING & REAL ESTATE DEVELOPMENT, 2nd Edition. Chapters 10,11 & 12
Authors John Ratcliffe, Michale Stubbs & Mark Shepherd
Other reference materials / readings will be posted to UTS online under "subject documents"
thru the course of the semester.
Other resources
Students will need to a Sharp EL738 financial Calculator. The calculators are available from the Newsagency
on the ground floor of the DAB building - approx $98.