FEASIBILITY ANALYSIS OF ALTERNATIVE STRATEGIES FOR A RESIDENTIAL DEVELOPMENT

Abstract

Real estate in Singapore is regarded as an attractive investment, especially so when the real estate market has experienced an upward tendency over the years. However, with the volatility of the economy, risk omnipresent in real estate investment can be minimised through the use of feasibility studies. A case study has therefore been incorporated to demonstrate the importance of feasibility analysis. A detailed analysis of the site and its neighbourhood revealed that an apartment development would put the site to its full development capacity. The unfavourable outcome of the financial aspect of the proposal is attributed mainly to the present continuing weakening of the market. A proposal to defer the development was thereafter recommended as an alternative strategy.