FEASIBILITY STUDY OF A PHASE 2 EXTENSION IN A MIXED USED DEVELOPMENT

Abstract

The residential property market is `alive' again after remaining stagnant for some time. After a five-year fall, the outlook for the residential property market is bright. The residential market is bullish with buyers being more confident that *the worst is over'. While last year's October stock market crash stabilised property prices, it has not dampened the growing optimism in the market. The bright outlook is due, in part, to : - Favourable economic performance in the first half of this year and is expected to continue into the year. - New CPF rules; - Low interest rates for housing loans; - More people can afford to purchase private residential property. With the growing scale and magnitude of development in real estate coupled with the element of risk inherent in all investment projects, investment decisions become more complex and vital. Though a bright outlook is prevalent in the residential market, the volatility of the economy makes it necessary to conduct an analysis to reduce the element of risk. Thus, a development proposal should be accompanied by a comprehensive feasibility analysis. This dissertation serves to show the importance of a feasibility analysis by incorporating a case study. The case study shows the procedure involved in a feasibility analysis being applied to a proposed development. Based on the analysis, decisions are arrived at, showing the importance of a feasibility analysis as a decision¬ making tool.