USE THE SELECTED SITE IN ASSSIGNMENT 2 . THE ASSIGNMENT 3 IS THE ONE UR DOING AND THIS IS THE...

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USE THE SELECTED SITE IN ASSSIGNMENT 2 . THE ASSIGNMENT 3 IS THE ONE UR DOING AND THIS IS THE CONTINUATION OF ASSIGNMENT 2. I CAN EVEN PROVIDE U CAD PLANS IF NEEDED FOR AREA PURPOSE FOR CALCULATION . ASLO GAVE REFERENCE FILE CHECK BELOWMicrosoft Word - 3a_Assignment 3 Brief_240511 - Copy 1    The University of New South Wales  School of Built Environment   Assignment No 3: Development Appraisal Report (weighting: 50% of the total;  individual work; to be marked out of 100%)      Submission due: Monday, 12 August 2024, 5:00 pm  Please submit your assignment online (in Word or pdf format) via the course Moodle  platform. Other forms of submission or submission records, for example, via email or  WhatsApp, are NOT accepted.   Late submission:  All assignments must be submitted by the due date/time.   UNSW  standard late submission penalty will apply 5% per day, capped at five days (including  Saturday and Sunday) after which students cannot submit the assignment.   Extensions for submission: Applications for special consideration regarding an  extension for assignment submission or examination are now centrally assessed by the  Case Review Team.  Applications must be submitted online as soon as you encounter  any problems before the due date. Application procedures can be found via  https://student.unsw.edu.au/special-consideration       The Brief    Assignment 3 is individual work.  This is a continuation of Assignment 2 (development  controls) in which you can make use of your findings on key planning requirements which  affect the development design, and hence its gross realisation, development costs and  feasibility.    Use the selected site in Assignment 2, which is situated in metropolitan Sydney and can  accommodate a ‘shop top housing’ development with around 50 apartments and ground- floor retail shops.  It should comprise 20% 3-bedroom apartments, 60 % 2-bedroom  apartments and 20% 1-bedroom apartments.  The site can be a single land lot or an  amalgamation of several land lots.    The development should be completed within 12 months, as planned by the developer.    Using the Hypothetical Development Approach, determine what should be paid for the site.    Then conduct a Discounted Cashflow Feasibility (DCF) Analysis to determine the  following:     Development time frame: pre-construction (lead-in period), construction and post- construction (selling period)   Market analysis of economic market conditions and comparable prices   Potential gross realisation value   Likely development Costs   Finance cost (interest; assume 100% debt)   Profit margin excluding and including interest   Internal Rate of Return before and after Interest    It is assumed that the planning authority has given positive support for this development  REST0006 Property Development & Feasibility Analysis        Term 2, 2024  2    after reviewing the preliminary design and planning concept in the pre-lodgement meeting.      All inputs and other assumptions should be fully given and explained.    All explanations and arguments should be properly cited and a list of references should be  provided.    Length of the assignment:   10 pages / 2800 words max.              Prepared on 11 May 2024  Briefing on 13 June 2024 3    REST0006 Property Development & Feasibility Analysis  Assignment No 3 Cover Sheet      Title: REST0006 Assignment 3: Development Appraisal Report     Student Name: ______________________    Student Number: ____________________    CHECKLIST (please tick)  ☐ Cover sheet  ☐ BE Plagiarism Form  ☐ Length and format of the report: 10 pages/2800 words max. (excluding the list of references),  Times New Roman or Arial font, 12-point, 1.5 spacing    ASSESSMENT CRITERIA:    Criteria Mark Value  Executive Summary  A clear and concise overview of the main points/ key  findings of the report  Enable reader to make a decision based on reading the  executive summary  10%  Market Analysis  Macro and microeconomic market analysis; apartment  and retail sale prices of recent comparable projects,  comparable development site sales; local competition;  SWOT analysis      25%  Hypothetical Development Approach  Discussion on gross and net realisation values; profit  margin, development costs and interest, land acquisition  costs, GST liability and reclaims; residual land value          25%  DCF Model  Discussion on: cashflow (outflows and inflows) over the  entire development time frame (gross and net realisation,  land costs, development costs, finance cost), GST  liabilities and reclaims; profit margin, IRR, NPV,  sensitivity analysis              25%  References and presentation  Referencing, figures, tables, sketch plans, report structure  (cover page, contents page, executive summary,  introduction, main body, conclusions, list of references,  appendices), proofreading             15%  TOTAL MARK  /100   1    REST0006 Property Development and Feasibility Analysis Assignment 3: Development Appraisal Report Guidance Notes: These guidance notes only serve as a guideline to provide you with a framework for  preparing this appraisal report.  You are expected to conduct your own in-depth research to  holistically complete the tasks.  All inputs and assumptions should be given and explained  in relation to the ‘Hypothetical Development Approach’ for estimating residual land value,  and the ‘DCF’ model for calculating profitability level.  Citations and a reference list should  be given in the report. 1. Market Research should include, but is not limited to, the following:  • Site Overview (Lectures 2, 3 and 4)  ➢ why select the site: Land use zoning and planning provisions; property cycle and  trend; local amenities, public transport facilities, educational facilities, existing  and future business, demand for housing and retail, etc. • Market Analysis (Lecture 4)  ➢ Macroeconomic market analysis (business confidence and demand for space)   o GDP growth, GDP per capita, cash and mortgage rates, CPI, population  growth, unemployment rate; housing finance; federal election, etc  ➢ Microeconomic market analysis (local demand and supply for decision- making)   o residential market at the Sydney level (median unit price and trends,  vacancy rates, units under approval and completion, median days on the  market, etc: sources of information: PCA, property research reports of  JLL, CBRE and the like, etc)   o retail market at the Sydney level (rental value and trend, yields, vacancy  rates, etc; sources of information: PCA, property research reports of JLL  CBRE and the like, etc)  o local market conditions at the suburb/postcode level: median age,  household size, population growth, dwelling structure/number of  bedrooms/ tenures; days on the market; residential median unit prices,  yields and trend; retail median rents, yields and trend; sales prices of  comparable residential and retail projects identifying median, low and  high prices, etc; sources of information: ABS, PriceFinder, local estate  agents, etc)  o local competition and projected supply in the pipeline (sources of  information: development applications to the council, local estate agents,  etc)   o Determine the prices of the subject property by making appropriate  adjustments  ➢ SWOT analysis summarises the ‘current’ and ‘future’ market conditions and the  potential viability, taking into consideration your company’s expertise in a  specific type of development. (e.g. strength: expertise in apartment development,  rising population of a suburb; weakness: buyer sentiment, slow GDP growth;  opportunities: low currency; threat: low migration rate, global economy)    2    2. Planning Control  • An outline of the Planning Requirements (use the research findings from  Assignment 2) (Lecture 2):   ➢ LEP: land use zoning (B4 mixed-use zone or R4 high-density residential  development for shop top housing / residential flat buildings); FSR, building  height limit  ➢ DCP and ADG: apartment mix, site coverage, setbacks, parking provisions,  apartment sizes, private open space (balcony; not counted as GFA if the balcony  wall is

Shubham · Accepted Answer

Executive Summary
This report includes analysis of proposed shop top housing development at 16-20 Station Road, Auburn, NSW. The development plan includes 50 apartments and ground-floor retail shops. It includes considering proximity of the site to public transport and local amenities. The report includes detailed market analysis that was conducted, considering macroeconomic factors like GDP growth, mortgage rates. and population trends. This also includes microeconomic factors including median unit prices, vacancy rates and local competition. The planning controls and development requirements like zoning, FSR and apartment design guidelines that are evaluated to ensure compliance. A Discounted Cashflow Feasibility Analysis has been assessed for financial viability of project. It can determine maximum land purchase value for targeting minimum profit margin of 20% and IRR of 12-15%. Sensitivity analysis was performed to understand the impact of key risk variables on profitability that can help in confirming financial feasibility of project.
Market Analysis
Macroeconomic market analysis 
The Australian economy shows GDP growth stabilizing at 2.3% in 2023. GDP per capita stands at approximately AUD 79,000 that shows steady economic performance. Cash rates is at 4.1%, that have moderated borrowing costs slightly, impacting mortgage rates, which is around 6.2%. Consumer Price Index inflation is at 4.8% that shows gradual return to target inflation levels.
Population growth remains strong at 1.5% per annum that is driven by immigration and natural increase that supports demand for housing. The unemployment rate is low at 3.7% because of that is contributing to economic stability and consumer confidence (Pawson and Martin, 2021). There are fluctuations in Housing finance due to interest rate adjustments but demand for housing is constant.
Figure 1: GDP growth of Australia
The upcoming federal election could introduce policy uncertainties that can affecting business confidence and the real estate market. The market of Sydney is expected to remain resilient with strong demand for space in well-connected locations like Auburn. The factors will influence potential gross realization value and overall feasibility of proposed development.
Microeconomic market analysis 
Residential Market at the Sydney Level
The Sydney residential market has experienced steady growth with median unit price around AUD 780,000 in 2023. Prices have slightly softened as compared to peaks seen that have been seen previous years because of rising interest rates and affordability constraints. Vacancy rates in Sydney are low that is around 1.5% that shows strong demand and limited supply. Units are under approval and completion have remained stable that is approximately 16,

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