DEVELOPMENT POTENTIAL AND VALUE TRENDS - THE EAST COAST AREA

Abstract

Although national demand and supply patterns are important, regional and local patterns are what most critically affect the success of a particular real estate project. However strong national demand patterns may be, they are not much use to a project caught in a slowly growing area or one that is overbuilt. Conversely, a project in a rapidly growing area with reasonably balanced supply forces can be successful during a period of national real estate inactivity. It is thus of importance to a developer (private or public), to first assess the development potential of the area chosen for the siting of any development project. An assessment of the development potential of a local area for the various real estate sub-markets, namely, residential, retail, offices, hotels and industrial, would involve the identification of prevailing real estate patterns and value trends in the area. The relative growth of the various sub-markets will determine their success and the form of future developments - their nature, intensity and location. The area chosen for this study, located on the East Coast of Singapore, has shown an interesting growth in real estate patterns in recent years. The primary objective of this dissertation is to analyse the development potential of the area, up to 1985.