DEVELOPMENT OPTIONS OF HDB FLATTED FACTORIES

Abstract

This dissertation attempts to arrive at a decision for HDB in determining the type of development option to undertake for its flatted factories. The three options refer to refurbishment, redevelopment and status quo. In order to provide an in-depth study, the flatted factory at Commonwealth Lane is chosen for the case study as it has obvious signs of obsolescence. First of all, an interview is conducted with the tenants of the building to find out which are the facilities and design features that they are satisfied or dissatisfied with. The areas of dissatisfaction will eventually form the basis for refurbishment works. Financial analysis is also carried out to evaluate the viability of each development option and the results show that redevelopment would be the best option to undertake as it has the highest NPV and ERR which are used as the decision rules. Comparisons are also made to each of the three development options to evaluate their respective advantages and disadvantages. Still redevelopment proves to be a better option than the other two especially if viewed from a long term point of view. Thus, it is recommended to undertake redevelopment for the property used in the case study and HDB's flatted factories in general since they share various similar attributes.