ACKNOWLEDGEMENTAssalamualaikum, First of all, I would like to thanks to Allah s.w.t because of His Guidances and Blessings to us that make our assignment can be completed and be done during the period given by our lecturer. Additional to, because of His Blessing for given us very good health and good conditions that make us to complete our fully assignment. Secondly, we also wish to acknowledgement to our lecture, Miss Nur Nazihah Binti Chuweni, for allowing and supporting us to produce this work. Also reviewing the manuscript and offering many helpful comments regarding its arrangement and content. A big thanks to on her opinion and sharing some of her experience. Not least, for Encik Encik Salman Bin Mohd. Idris who is officer at Majlis Daerah Perak Tengah for wanting to give full cooperation and commitment to us during the process of completing this assignment. Besides that, thanks to the officer at Unit Jabatan Perancangan Bandar dan Desa, Pejabat Tanah dan Galian, Ipoh, Perak Darul Ridzuan that have spent their time and helped us by providing the evidence to further strengthen our assignment work.Thirdly, we would like to thanks our family members, thank you for the love and support throughout the journeying producing this assignment. They have done many sacrifices to make sure that our assignment can be finished. Without them, we may have a problem especially for the financial problem. Because of them, all the problems have been solve and can be deterred.Lastly, we also to thanks to ourselves because can be a good partner and do this assignment together. Last but not least, a big appreaciation to our fellow friends because of their big idea that they have shared with us. We have spent very special time together while to finish our assignment. We are very hope that our friendship will be not last. Lastly, a special big thanks to all those that has helped us.

1.0 EXECUTIVE SUMMARY

Information below is about the feasibility study project a residential development (double storey terrace house) PT 9349 H.S.(D) 8034, Bandar Sri Iskandar, District of Perak Tengah, Perak. Our company, Suria Property & Co. have been instructed by our client Miss Nur Nazihah Binti Chuweni to prepare and make a Feasibility Study on the prospects for the development of Double StoreyTerrace House. This is some information about the development:CLIENT : Miss Nur Nazihah Binti ChuweniPURPOSE : Feasibility StudyPROPERTY TYPE : Double Storey Terrace HouseTITLE NUMBER : H.S (D) 8034LOT NUMBERS : PT 9349TENURE : Leasehold interest for 99 years ( remaining 90 years)SURVEY LAND AREA : 6 AcreCATEGORY LAND USE : BuildingThe research aims are to identify and determine the potential market for the proposed double storey bungalow development and to gain understanding about the viability and profitability of the project. There are many factors to be considered to determine the viability of a project which include site assessment, property market analysis, socio economic analysis and the calculation in term of residual method.. The development will bring good prospect to the developer in the future and profitable investment for a long term basis. The project viability is dependent on the ability of the projects development to capture existing and future hospitality market in the area.

2.0 INTRODUCTION A preliminary study undertaken before the real work of a project starts. In general, it is a documents that provides of a comprehensive analysis and the concrete data and information on the market. Usually, the feasibility studies will cover all the information on the market, technical, environment, managerial and administrative, financial, economic, social, cultural, politics aspects of a project. Besides that, a market analysis searches for the intersection of demand and supply that will create a market for a product at a given price. Feasibility analysis tests whether a certain product will meet certain financial or social goals in the market.Before a decision is made to undertake any real estate development so it is imperative that a feasibility study is carried out as to the viability of the project in relation to the existing and future market conditions. The feasibility study was undertaken by the Suria Property & Co for the client Miss Nur Nazihah Binti Chuweni pursuant to the instruction dated on 23rd January 2013 to develop the landed residential scheme. The objective of the feasibility study is to determine the viability of the landed residential scheme project in Sri Iskandar, Perak Darul Ridzuan. Besides that, the objectives of preparing the feasibility studies is for to identify and qualify the potential market and scope of the work development in relation with the potential buyer in Sri Iskandar. Moreover, it is to look out the trends, patterns, designs the outlook of the house and causes for better judgement about potential use of property. That is one of the studies to determine the current requirement of potential buyer and also for the potential tenants that have the purchasing power towards of the future landed residential development in Sri Iskandar.

2.1 OBJECTIVESThere is some objective of market study which is:1. To determine the viability and feasibility of the residential housing at district Bandar Universiti, Perak Tengah, Perak Darul Ridzuan.2. To determine the most suitable and efficiently viable of the subject property.3. To clearer understanding of the market about socio economic factors, policy and plan in the development and property sector on the subject property.4. Market study also help the plan development for knowhow of building to build according to guidelines, selling time, construction period, the period, the price of building and marketing.According to the clients instruction, the following have been defined to be the scope of work for the above feasibility studies:i. Site Analysisii. Property Market Analysisiii. Socio Economic Analysisiv. Competitive Analysisv. Swot Analysisvi. Proposed Developmentvii. Conclusion and RecommendationsBy gathering the information, the findings of feasibility study of the project could be used to determine based on the combination of the several factors such as physical factors that include the location, size, soil and environment factor while the technical factors will consider the project management and construction technology. The aspects of project costing, pricing, loan and equity will be implemented on the financial factors. Moreover, the market and economic conditions will determine the demand and supply, competition, interest rate, inflation and economic cycle. The social factors will be applied on identify the people sensitivity and culture.

2.2 METHODOLOGYFor the purpose of carrying out the feasibility studies, the following methodology was adopted such as:-a) Face to face interview. For example, we as an interviewer and researcher have made the direct questionnaire with the officer at Land Office and District officer. We have make an interview with Encik Salman Bin Mohd. Idris to get more information on the initial development process such as the conversion of the land use and planning approval. We ask normally from questionnaire and record the responses.b) Make enquiries from other relevant authorities. The example of the enquiries authorities are Survey Department, Technical Department and Town and Country Planning Department. It is as initiative to know about the land use and zoning of the site project.c) Make a references to several relevant officer publications pertaining to the landed residential scheme such as Property Market Report, publications of population growth, age & household size, income level, occupation profile, employment, demand and supply rate from Jabatan Perangkaan, Ipoh, Perak Darul Ridzuan. Our feasibility study covers only the above mentioned property and/or sub-sectors in the locality of the subject property and its surroundings. Besides that, the information obtained from the third parties have wherever possible been verified to the best of the ability to be correct at the conducted. The certain information were classified as confidential and were not available to us. This feasibility study has been prepared with the objective of advising the client and shall not be used for other purpose with prior consent of the company. Official data are available are up to 2011, as published by Valuation & Property Service Department, Ministry of Finance

3.0 SITE ANALYSIS3.1 SITE LOCATION AND DESCRIPTION-LocationOur proposed site is part of the Bandar University Seri Iskandar and is located about 2 kilometers to the main road connecting highways Ipoh - Lumut at traffic light junctions between Bandar Universiti or Taman Maju and it is located about 40 km from Ipoh. It is also, located in Pentadbiran Majlis Daerah Perak Tengah. The proposed site is located in Mukim Bota, Perak Tengah District where the lot number is PT 9349. Standard sheet number is 720 and the proposed site has an area of 6.00 acres.-Topography ConditionProposed site topography is flat. Although, the location of the land is quite low compared to the surrounding area and swampy. So there is no any significant problem for this landed residential development schemes.

Figure 1: The plan of proposed development

- Existing Drainage SystemBased on surveys of site, there are existing drains along existing roads in the south and east of the site. This site is part of the pond area. Therefore, the water can be channeled directly into the drains and retention pond nearby.- The Current Land UseCurrent state of the site is vacant land covered with green grass and trees. Part of this site is swampy.a) LOCATION PLAN

Figure 2: The location plan for proposed development

b) SITE PLAN

p

SUBJECT SITE

Figure 3: The site plan for proposed development

c) SATELITE IMAGE SITE AREA

Ipoh-Lumut Highway

Bandar Seri Iskandar

Subject site

Bandar Baru Universiti

Figure 4: The satellite image site area for proposed development

d) KEY PLAN

Figure 5: The Key plan for the proposed development

e) SUBJECT SITE

SUBJECT SITEJALAN BANDAR U-17Figure 6: The subject site for proposed development

3.2 DOCUMENT OF TITLE PARTICULARFor our proposed development located at Bandar Universiti, District of Perak Tengah, the particular of tile for the proposed subject are as follows:-Contents

Details

Lot No.

PT 9349

Title No.

H.S.(D) 8034

Town

Mukim Bota

District

Perak Tengah

State

Perak

Land Area

6 Acres

Tenure

Leasehold Interest For 99 Years (Remaining 90 Years)

Category Of Land Use

Building

Express Condition

Business Private Educational Institution

Restriction In Interest

No

Encumbrance

No

Table 1: The description of particular title for the proposed development located at Bandar Universiti, District of Perak Tengah.

3.3 NEIGHBOURHOOD ANALYSISNeighbourhood analysis is an important factor that should be included in making a feasibility study for the proposed site because it describes the facilities and utilities available in the surrounding area of the proposed site. This is a factor to attract home buyers, whether the locals who live in District of Perak Tengah or people from outside the county. Here, we can list a few items that need to be considered in the analysis of neighbourhood:-- RESIDENTIAL AREAThere are many residential units at the area of such Taman Iskandar Perdana, Taman Maju and Bandar Universiti Lakeville. The most common type of residential being built in area of Seri Iskandar is Single Storey Terrace, Single Storey Semi Detached and Double Storey Terrace Houses.- COMMERCIAL AREAThere are many commercial building has provided in area Seri Iskandar. Firstly commercial area has a Taman Iskandar Perdana Shop-lot thats provide a commercial centre for the people in Taman Iskandar Perdana and near it. Second commercial area is Taman Maju and Bandar Universiti Shop-lot thats also provided many shops to easier people the surrounding to find the basic need. Lastly, TESCO, its provide to easy the residents at that surrounding to buy anything that they need or want. All of this will make Seri Iskandar more attractive.- INSTITUTIONSThere are some institutions that are provided for residents at Seri Iskandar. The example of institutions that exist at this area is such Universiti Teknologi Mara(UiTM), Institusi Kemahiran Belia Negara(IKBN),Kolej Polytech Mara, Universiti Teknologi Petronas and others. Besides, there are also two schools at this area which is Sekolah Kebangsaan Bandar Baru Seri Iskandar and Sekolah Menengah Kebangsaan Agama Sultan Azlan Shah.This institution provides education for residents and increase their level of life and its also will attract many people to living around the proposed site because there have many opportunity in order to study or gain the money with do the business.

- FACILITIES Local government has provided many facilities to the resident in order to fulfill their basic needs of residents. The facilities that are provided in the area in Seri Iskandar such as petrol station, police station, post office, bus stop, fire station and many more. The facilities that were provided can make a resident to do all their activity with easily. All of the facilities are provided can attract many people from the other area to living at Seri Iskandar, especially at the proposed site. - INDUSTRIES There are several factories that located at Bandar Baru Seri Iskandar that near with purposed site such Idaman Pharma Manufacturing and Pharma Safe Manufacturing. This factory will helps by giving job opportunity and develop the economy of Bandar Seri Iskandar.

f) SATELITE IMAGE FOR 10KM RADIUS

Figure 7: The location covered 10km radius from subject site.-10 KILOMETERS RADIUSBelow is facilities and utilities are taken in 10 km radius from the subject site;1) Facilities and utilities located to the North from the proposed site; Universiti Teknologi Petronas Petrol station Sekolah Kebangsaan Tronoh Tronoh police station Klinik Kesihatan Tronoh Akademik Pembangunan Belia Malaysia

2) Facilities and utilities located to the Southwest from the proposed site; Idaman Pharma Manufacturing Sdn. Bhd

3) Facilities and utilities located to the West from the proposed site; Petrol station Hentian Seri Iskandar Bank Islam Pejabat Kesihatan Seri Iskandar Klinik Kesihatan 1 Malaysia Hotel Putra Universiti Teknologi Mara Kompleks Pentadbiran Daerah Perak Tengah Ibu Pejabat Polis Daerah Perak Tengah Masjid Daerah Balai Bomba Daerah Perak Tengah Sekolah Menengah Kebangsaan Seri Iskandar Sekolah Menengah Kebangsaan Agama Sultan Azlan Shah Institusi Kemahiran Belia Malaysia Pejabat Pos Malaysia Lembaga Air Perak Dewan Serbaguna Seri Iskandar Sekolah Rendah Agama Rakyat Integrasi KAFA

4) Facilities and utilities located to the Northwest from the proposed site; Shophouse Tesco Bank Rakyat Kentucky Fried Chicken

3.4 ACCESSIBILITIESThe location of the proposed site for landed residential development scheme at PT 9349, Mukim Bota, District of Perak Tengah, Perak Darul Ridzuan is very strategic because this area located at Bandar Universiti that can be access by main road that connecting highways Ipoh - Lumut at traffic light junctions between Bandar Universiti or Taman Maju. The residents and people outside the area of Mukim Bota can be easily access to the subject property through the highway Ipoh Lumut. At the junction to Bandar Seri Iskandar which located Tesco at the road frontage then turn left, then go straight about 1.5 kilometres and access to frontage Jalan Bandar U-34 through the subject property.3.5 UTILITIESThere are several utilities that are provided at the area of Bandar Seri Iskandar and also at the proposed site. The district of Perak Tengah is control Majlis Daerah Perak Tengah, and the public utilities that provided for this district is such as electricity, water supplies and telephone. The entire utilities make the construction work easier and it also will make the construction period goes smoothly.

3.6 PLANNING PARTICULARBased on the surrounding development is residential and it forms part of the Bandar Universiti Seri Iskandar, so residential development scheme is very suitable on this site. Based on the Strategic Planning Development District of Perak Tengah 2020 (Draft of Structure Plan Negeri Perak 2020), Seri Iskandar or Bandar Universiti has been marked as the main township and Semi Central Zone Regional. Therefore it is appropriate to put forward proposals to meet the above requirements. Below are planning requirements for terrace house that suitable for the proposed site;

Subject SiteFigure 8: The picture above shows the proposed site was zoned as a residential area.

I. Fraction of Land Use / Type of Development Proposed layout plan submitted contains the following items:-Use of LandUnitSize (acres)Percentage (%)

Double Storey Terrace House (22 X 70)783.1151.83

Open Space-0.6010

Water Tank-0.305

Electrical Substations Reserve -0.091.5

Road Reserves-1.931.67

Total786100

Proposed residential areas involving 51.83% of the total site acreage. While the rest is in the streets, lanes, water tanks, open space, and electrical substations.

II. Proposed road This proposal provides the following items;a. Main Road 66

b. Housing Slip Road 40

c. Front Road Terrace House 40

d. Back and Sides of The Lanes 20

III. Development Charge A Development Charge will be imposed on the developer for change of zoning and increase of floor area.

3.7 INFRASTRUCTURE- Present InfrastructuresThere are some present infrastructures that are provided for residents at District of Perak Tengah. The existing of infrastructures in the area of Bandar Universiti gives facilities to the residents surrounding that area. Some infrastructures have at the area of Bandar Universiti for residents such as Hentian Seri Iskandar, Tesco, shop house, bank, petrol station, tabika kemas and others. Besides, there have many education facilities at the area of Bandar Seri Iskandar such as Univesiti Teknologi Mara, Institut Kemahiran Belia Negara, Sekolah Kebangsaan Bandar Baru Seri Iskandar and Sekolah Menengah Kebangsaan Agama Sultan Azlan Shah and others. Other than that, the existing of roadways that is highway Ipoh-Lumut helps the residents at this area easy to go anywhere. Street light is also provided at the area. Telecommunication system such as Celcom and Maxis help the residents to connect.

- Future Infrastructures Future infrastructures will be built at surrounding the purposed site is Pedestrian Mall and Kentucky Fried Chicken (KFC) drive-thru, this project besides Tesco which located near the highway Ipoh-Lumut and the junction of Taman Maju. There also some future big project which faced with the proposed site which is Iskandar Square. It will be the first shopping mall exists in the area of Perak Tengah. The shopping mall will provide many shops such as Billion, Cinema and bowling centre. This will help resident at Perak Tengah can save their time because no need to travel to Ipoh to buy their needs and want and to find entertainment. Other than that, it will be the main attractions to people to live in Seri Iskandar are in the future. So that will give many advantages to proposed development. For the project development of residential area there are project will done by MRCB which are under the construction ,the project was consist single-storey terrace and single storey semi-detached houses.

4.0 OVERVIEW OF PROPERTY MARKET ANALYSIS IN MALAYSIAMalaysia is a country with enhanced human capital investment which insures the well being of all Malaysian people. This is due to this fact that a great focus is given to the competitiveness of the nation. Market of Malaysia including real estate property market is indeed a glittering silver market with lots of opportunities for everyone. There is a great demand of luxury items including the demand of fabulous homes and offices. This shows that Malaysia property maker trend is growing day by day. For 2012, Malaysias property market shows an optimistic outlook based on a positive buying sentiment demand to own home and need for housing. Also, the favourable interest rate (current base lending rate (BLR) is 6.6%) environment, healthy employment market and the fact that property investments are a proven reliable asset class will continue to sustain and drive the property sector. By property type, terraced house continued to dominate the new housing market. This property type represented 56.6% (19,084 units) of the national total. Single storey terraced unit made up 27.7% (9,344 units) whilst 2-3 storey terrace formed another 28.9% (9,740 units). The condominium/apartments constituted another 13.1% (4,410 units) of the total. The 2-3 storey semi-detach and single storey semi-detach formed 8.5% (2,867 units) and 8.1% (2,743 units). The number and value of property overhang (completed units which have remained unsold after nine months of launching for sales) decreased from the previous quarter. There were 29,003 completed units worth RM6.740 billion which remained unsold in the market. These overhang units comprised 22,422 residential units ,5,931 shops and 650 industrial units. The Malaysian property market improved in tandem with the growth of its economy. There were 376,583 transactions registered in 2010 with a total worth exceeding RM100 billion mark at RM107.44 billion.

4.1 RESIDENTIAL LAUNCHESA launch is an event made to start market a number of property units of various types in a project by a developer at a given time. A project/phase of a development can be offered for in the market in one or more launches. Sales performance refers to the percentage of number of units sold from the total units launched for a specific type of property in the review period.

Source: Property Market ReportBased on the property market review from the year 2006 until the year 2010 shows that the growth of the development within that period is moderately increased and decreased. The highest number of unit launched is at the year 2007 while the lowest number is at the year 2006.while, the number unit of sold shows the slightly differences with the number of launches. On the year 2006, the number of unit launches shows 38,526 unit while the number unit sold on that area is at 15,630 unit. Besides that, at the year 2007, it shows the large gap when the number of units launched is at 52,664 unit while the number of unit sold is at 23,749 unit. At the year 2008, it is 21,725 units have been sold by the 48,830 unit residential house have launched. It continue with the year of 2009 with the 45,909 units launched and 22,955 unit sold. For the last 2010, the number units that have been success to sold is at 21,799 unit and the number of units that have launched is at 47,698 units.

QuarterQ2 2010Q3 2010Q4 2010Q1 2011Q2 2011

Units Launched15,57412,29114,62512,1896,909

Unit Sold2,4121,6372,3461,1231,449

Sales Performance (%)15.513.316.09.221.0

Table 1: Summary of New Launches from Q1 2010 to Q1 2011For the property transaction within the quarter 2 until quarter 4 on 2010 show the property transaction between the number of units launched and the number of unit sold is moderately decreased and increased. The number property that have launched at Q2 2010 shows 15,574 unit and number of unit sold is 2,412 unit with the 15.5% sales performances. While for the Q3 2010, the sales performances turns decreased to 13.3% when the number of success to sold is at 1,637 unit by 12,291 unit launched. But, at the Q4 2010, the sales performances are rapidly growth at 16.0%. The number units have launched is at 14,625 units and the number of units sold is at 2,346. Moreover, when the Q1 2011, the number of units that have launched is at 12,189 units and the property success to sold is at 1,123 units with the 9.2% sales performances. And at the Q2 2011, the units launched turns become decreased to 6,909 units and the number of unit sold is at 1,449. The sales performances of that year shows at 21.0%.Table 2: Summary of New Launches of Residential Units As At Q2 2011 StateUnits

WP Kuala Lumpur453

WP Putrajaya0

WP Labuan0

Selangor619

Johor99

Pulau Pinang1,015

Perak722

Negeri Sembilan882

Melaka537

Kedah578

Pahang567

Terengganu139

Kelantan184

Perlis314

Sabah0

Sarawak800

MALAYSIA6,909

Source:JPPH For the period of Q2 2011, the highest state that have launches new residential units is Pulau Pinang. The state of Pulau Pinang have rapidly growth of development and have produced 1, 015 unit of residential on that period. Secondly, it is followed by the state of Negeri Sembilan which have launched 882 unit of residential that is almost similar with the state of Sarawak that have launched with the 800 units. While, the state of Perak have consistently at 722 unit of residential at the quarter 2 of the year 2011.

4.2 THE TRANSACTION OF PROPERTY

Sources: Property Market Report (2006 2010)In 2010, the house price within RM 2500,000- RM 500,000 as well as RM 1,000,000 and above formed 23.2% (RM 11.741bil) and 23.1% (RM11.669bil) respectively, constituting the biggest portion in term of transaction value. Both the volume and value of transaction recorded double digit growths of 11.4% and 32.6% respectively (2009: 338,089 transactions worth RM81.02 billion).

4.3 RESIDENTIAL OVERHANG IN MALAYSIA.Significantly, residential overhang phenomena would be happen when the residential units with Certificate of Fitness For Occupation (CFO) or Temporary Certificate of Fitness For Occupation (TCFO) or Certificate of Completion and Compliance (CCC) but remain unsold for more than 9 months.

Sources: Property Market Report (2006 2010)The number and value of property overhang (completed units which have remained unsold after nine months of launching for sales) decreased from the previous quarter. There were 121,265 completed units worth RM28.472 billion which remained unsold in the market.. All sub-sectors recorded better performances by registering lower number of unsold units and value. The number of unit unsold at 2006 is 25,645 turns to decrease at 23,866 units which decrease on 6.9% but within the year 2007 to 2008 shows the increasing at 9.1% when the number of unsold units increased at 26,029 unit. While, there is decreasing at 13.2% to 22,592 unit. At the year of 2010, the number of unsold unit became increase to 23,133 unit at 2.4%.

4.4 OVERVIEW OF PROPERTY MARKET ANALYSIS FOR PROPOSED DEVELOPMENT.4.4.1 GENERAL PROPERTY MARKET ANALYSIS IN PERAK The delivery of residential properties in Perak is expected to hit about 10,000 units this year compared with 4,582 units last year.The delivery of housing units in Perak was 9,747 in 2007, 6,513 in 2008 and 8,496 in 2009, according to a recent Finance Ministry property market report.Real Estate and Housing Developers' Association Perak chapter chairman Datuk Francis LeetoldStarBizthat there was significant change in the attitude of consumers in Perak towards the purchase of properties since the beginning of the year.The property prices in Ipoh have increased by about 15% over the past one year. The price of a double-storey terraced house has surpassed the RM200,000 mark, selling at around RM240,000 in the Kinta district area, which is within 8km radius from Ipoh town. There are 10 districts in Perak. About 60% of the new property launches are located in the Kinta district.The Larut, Matang, Selama and Manjung districts are the other areas where new properties are being targeted for development.The increase in property prices is largely caused by higher land cost, bureaucratic compliance fees, and construction cost.Despite the rising property prices, developers in Ipoh were not making additional margins from development. The projects include 300 units of shop-lots with GDV of RM210mil, 500 units of double-storey terrace houses with GDV of RM100mil, the RM135mil AEON shopping mall, and the RM80mil Pantai Hospital Manjung. Despite having gone through a few recessions, Manjung has generated a steady annual income of RM25mil to RM30mil to the group for the past 20 to 30 years,The Royal Malaysian Navy Lumut base and dockyard is a strong source of support for properties in Manjung. The residential property market in Perak is expected to remain to be stable. New properties will be priced slightly higher because of rising building material costs.The bulk of property purchasers are still locals. But in recent years, we are seeing more buyers from other states, as the value of property in Ipoh is appreciating, he added.The company has about RM55mil worth of properties to be launched in the second half of the year in Bandar Baru Sri Klebang, compared with the first half of 2011 which saw RM65mil worth of new launches.4.4.2 PROPERTY SUPPLY MARKET ANALYSIS AT PERAK TENGAH.4.4.2.1 The Existing Stock The determination of the property market analysis are based on the location of the proposed development which at Bandar Universiti under district of Perak Tengah.The performances of the existing stock in Perak Tengah have been interpreted based on the performances of property market analysis to the nearest district of proposed development that Distrct of Kinta and Manjung. The existing stock refer to the supply of particular type of property which already in the market. YearNumber of existing stock

2007197

2008242

2009304

2010304

2011383

Figure 1: The existing stock for Double Storey terrace house in Perak Tengah.Based on Property Market Report, the performances of existing stock in Perak Tengah for the type of 2-3 Storey Terraced House shows the increasing of growth. On 2007, the existing stock shows at 197 unit while increase to 242 unit at 2008. At the year of 2009 and 2010, the bar chart shows the number of existing stock are consistently with 304 unit. Single storey terrace houses supply also very consistent and keep on increasing that shown that of residential are still in demand in the area of Perak Tengah. At the year of 2011, the number of existing stock increase to 383 unit of house. It differences to the nearest district which Kinta that show the existing stock on that area is at 53,957 unit while in Manjung have 7,157 unit. The location of the development also have been affected to the number of existing stock. 4.4.2.2 The Completion The completion of the building are referred to that property when the building of it construction works are completed and a CF/TCF/CCC is issued within the review period. The figures in completion are not accumulated from the previous quarter but represent only one review period. The figure below shows the performances of the completion building in Malaysis within the period of 2006 to 2010. )Years Number of completion

20070

200845

200962

20100

201179

Figure 2: The completion for Double Storey terrace house in Perak Tengah.Based on Property Market analysis, shows that the performances of completion building for the period of 2007 until 2011 have a fluctuation and do not consistently growth.. At the year 2007, there is no completion house with 0 units. While at the year of 2008, the number of completion started to be increase which 45 units. Next, the number of units followed to increased by 62 units at the year 2009. At the year 2010, the number completion units have spun to 0 units. The number of units started to increased at the huge amount which increase at 79 units that differences with the completion unit building at near district which Kinta and Manjung that shows the 1,854 and 409 unit at the year 2011 respectively.. Thats shown the demand of this type of residential has started to be recover. Even though the number of completion single storey terrace houses not so consistent but the demand are always have and started to be increase for the next year that shown that type of residential is have good demand in the area of Perak Tengah

4.4.2.3 The Incoming SupplyThe incoming supply refers to the property that still under construction but not fully finished yet. It is the properties that have an owner which has booking before the construction started. It can become the advantages to the developer to build on that other proposed development. It involves the units where the building plans have get approval obtained from the local authority. YearsNumbers of incoming supply

2007304

2008370

2009373

2010449

2011406

Figure 3: The incoming supply for Double Storey terrace house in Perak Tengah.From the overview of the Property Market Report from year 2007 to 2011, the number of incoming supply single storey terrace houses shown there are fluctuated. From the year to 2007, the incoming supply started to 304 units and become increasing over the year to year until 2010. At the year 2008, the number of units increasing by 60 units from the previous year total of 370 units. Then, on the next year the total of incoming supply increasing to the 373 units and become decreasing to the 449 units on the next year which at 2010. Even though the number of completion single storey terrace house was inconsistently but the demand that type of residential have good demand in the area of Perak Tengah. Besides that, the incoming supply the nearest district which Kinta also shows the increasing at 8, 135 unit on the year 2010. So that, from the incoming supply of single storey terraced houses in Perak Tengah, the conclusion can be made is this type of residential are still in demand and also have potential to be built. On the year 2011, the incoming supply situated at Perak Tengah turns to decreased at 406 units. 4.4.2.4 The Planned SupplyThe determination of the planned supply in Perak Tengah is the one of the important aspects that can conclude the future planning on that area. The future planning can interpret the new development that will built up on that area. The planned supply can also be determine as any development that do not construct yet and obtained the approval from the local authority but that development has under planning by the developer or consultant. YearsNumbers of Planned supply

2007504

2008424

2009359

2010393

2011357

Figure 4: The planning supply for Double Storey terrace house in Perak Tengah.Based on the Property Market Report from the year 2007 until 2011 shows the number unit for the planned supply is fluctuated over year to year. The highest number unit shows at the year of 2007 while the lowest number of unit shows at the year of 2011 which at 357 unit. The number of units from the year of 2007 weak and show a decrease to 424 units at the year 2008. And on the next year, the number unit of houses for planning supply shows decreasing to 359 units. It may cause of delays and other reasons may rise. And it continues to arise at 393 unit of planned supply residential at the year 2010. It prove that the construction and development still running smoothly. At the year 2011, the number units of planned supply turns to decrease with the small gap by 36 units from the previous year. For the near district which Manjung show at the year of 2010, the planned supply turns to 501 unit of 2-3 storey terrace house. And the number unit of planned supply expected may increased over year to year until now. 4.4.3 PRICES OF RESIDENTIAL UNIT IN PERAK TENGAHPrice is one of the important and syndication aspects that must be considered while to value the property. The prices of the house are fluctuated and differences for each type of property. There are varieties of aspects that can consider determining the market value for the house. As our proposed development located at Bandar Universiti, the price range for the Double Storey terrace house is taken to determine the value of our proposed development. The price is also taken refer to the newly launched residential unit in Perak Tengah that by the references from Property Market Report from the year 2007 to the year 2011.

Figure 1: The price range for Double storey terrace house in Perak TengahBased on the Property Market Report from the year 2007 until 2011 and the location that covered for the area of Perak Tengah shows the price range within that year is fluctuated and changes from year to year. Refer to property market report in 2011, the unit of newly lunches at Perak Tengah on that year is at 70 units with the floor area range at 137 square metre and the building area range at 121 sq. metre. The price range on that year show at RM178,000- RM 199,800 with the 7.7% sales performances. While at the year 2010, the sales performances for the newly launches residential increase at 43.1% with 51 units new residential house. The floor area range is at 132 sq. metre and the building area range is at 167 sq. metre. The price range on that year is between RM167,800 to RM174,000. On the year of 2009, there are 31 units of new residential house that have launches on that year. The sales shows the growth at 61.3% of sales performances and the floor area range is at 121 sq. metre. The building was sold at the prince range RM169,000 with the building area range at 167 sq. metre. The performances on the year 2008, the price range for the new residential house was at RM125,000 with the 50 units sold on that area. The floor area range with the property that sold at RM125,000 is at 130 sq. metre and the building area at 104.09 sq. metre. Refer to the number of statistics in Property Market Report, the 59 number units involve of newly lunched for the residential and type of Double Storey Terraced House with the building area range at 207 sq. metre. The price range for that property shows at between RM132,800- RM188,100 and the floor area range of the property for that price is at 207 sq. metre. Refer to the PMR, the floor area range of the newly residential house on that year was not available. Summary of the Prices Ranges between year 2007 to 2011. YearUnitsFloor area range(sq. m)Building area range (sq.m)Price rangeSales performance %

201170137 sq. m121 sq. mRM178,800-RM199,8007.7%

201051132 sq. m167 sq. mRM167,800-RM174,00043.1%

200931121 sq. m167 sq. mRM169,00061.3%

200850130 sq. m104.09 sq. mRM125,00010.0%

200759NA207 sq. mRM132,810-RM188,10042.4%

4.4.4 RENTAL VALUE FOR THE PROPOSED DEVELOPMENTTo determine of rental value for the proposed development, the rental amount of similar type property which 2-3 storey terrace house was taken as the analysis. Besides that, the factors of location also as one of the aspects that have considered to determine the rental value. The similar type of property located at Perak Tengah was taken as subject comparable to determine the rental value.

Three types of comparable was taken as subject comparable located at Bandar Universiti. The transaction price of three types of comparable is different each other. They may cause of the finishes and condition existing on that property. Based on the comparable 1, the location of the house is located at the same place to subject property with the transaction price RM368,000. The amount rental for that property is RM1, 450 for a month and the rate of return to rent out their property is at 4.7%. For the second comparable, the transaction price is at RM370,000 with rent out at RM1,500 per month. It is a double storey terrace house with the rate of return at 4.9%. For the last comparable, the property was reant out for the RM1,600 per month with the transaction price at RM373,000. The rate of return for that double storey terrace house located at Bandar Universiti was at 5.1%. for our proposed development, we have assumed that, the amount of rental out was at RM 1,550 per month. 4.4.5 THE YIELD FOR PROPOSED DEVELOPMENT (RATE OF RETURN).Yield was referring to the rate of return to rent out for that property. It is the estimated amount that can be enjoyed by the owner to rent out for the property. Reversionary yield was referring as the ratio between the current rental value and capital invested. It is determined based on the amount of percentages. The amount of rent out will affect to the owner to purchase the property and rent for that property. As the proposed development was expected to rent out at RM1, 550 per month with transaction at RM265, 305 per unitSolutions:-

X 100%Current Rental Value X 100%Capital Invested Price rangeRental (RM)/ MonthRate of Return (%)

RM 265,305RM 1,550 per month/RM18,600 per annum7.01%

Yield of the property must be high because to attract the investor and potential buyer. The yield of the area Perak Tengah is affecting the demand and it will cause the whole area for example is will be increase in market value. The yield Double storey terrace house is at 7.01%. So, the investor should take these opportunities to invest to get more profits.

5.0 SOCIO ECONOMIC ANALYSIS5.1 Malaysia EconomyMalaysia, a middle-income country has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister, Dato Seri Mohd Najib Bin Razak, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. The Prime Minister administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysias exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, Dato Seri Najib has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests.

Year200920102012

Population27.9 million28.3 million28.6 million

Labour force12.1 million12.4 million12.6 million

Employment11.6 million11.9 million12.2 million

Unemployment rate3.7%3.4%3.3%

National ProductYear200920102011

Real GDP (RMmillion)522.0559.6588.4

Growth rate (%)-1.67.25.0-5.5

Real GNI (RM million)497.4516.8545.5

Nominal GDP (RM million)679.9766.0847.3

Nominal GNI (RM million)665.3739.5820.2

Income per capita, curent (RM)23,85026,17528725

Economy of PerakPerak was one of Malaysia's wealthiest states duringMalayas colonial period, as much of Malaya's mineral deposits were situated here. The tin industry here subsequently flourished under the auspices of the British fuelled by the ongoingIndustrial Revolutionthen. The global tin industry collapsed in the 1980s, subsequently forcing the closure of many local tin mines concurrently crippling Peraks economy.This turn of events led the local state government to diversify the economy's base towards commodity-based manufacturing. The mid-1980s witnessed a large influx of electronicsSMEsfrom Taiwan to Silibin and Jelapang industrial estates, but these have relocated to China in the 1990s as a result of outsourcing. A local car manufacturing hub calledProton CityatTanjung Malimhas been developed with the establishment of state-of-the-art car manufacturing facilities which is the largest manufacturer of Protoncars. However, the economy has never fully recovered from the decline of the tin industry.Agriculture is also one of Perak's main industries, especially those concerning rubber, coconut and palm oil. Tourism is a growing industry given the state's abundant natural attractions.Perak is set to become the second state afterKelantan to introduce the golddinar and silverdirham as official currency

5.2 Employment

This is employment in Perak Tengah which is the most highest is service worker & shop and market sales workers, so their can be highest prospect buyer for our residential. Second is skilled craft related trade workers and follow with plant and machine operators. We are targeting the highest group of employment is Government servant, the reasons is our area is near with many administration centre, example is UITM, UTP and MARA and also many of government office, example Pejabat Daerah Perak Tengah and fire station. Beside that we also targeting private servant worker, example is worker factory, bank staff and KFC workers.

NoCategory(000)(%)

1.Legislator, Senior Officer and Manager64.37.8

2.Professional38.35.6

3.Technical and Professional Associates113.27.3

4.Clerical Workers77.37.1

5.Service Workers, Shop and Market Sales178.99.6

6.Agriculture103.58.2

7.Skilled craft related trade workers105.79.3

8.Plant and Machinery Operator112.59.1

9.Elementary Workers97.97.9

Total891.68.2

5.3 Population of Perak Tengah

Average annual population growth rateNo.Year%

1.1991-20000.93

2.2000-20101.59

Based on the data, we can see that the number of population increasing years to years, in years 1991 the population in Perak Tengah is only 75574 populations, but in years 2000 the numbers is increase by growth rate which 0.93% population that means in years 2000 number of population is 82,153. In years 2010 the number of population increased rapidly, the number of population in that year is 98,897. So we are confident to build the residential at our site because the number of the population is increasing and the demand is high.

Number of Household in Perak Tengah

The number of household in Perak Tengah shows a great increase from years 1991 to years 2010 because of the rapid development in Perak Tengah, other than that the increment of the number of household also may cause by many person in Perak Tengah which they need their own property. So the chances to our property being sold are high because the number of household here is greatly increased. The comfortable environment in Perak Tengah which has complete infrastructure also one of the factor to attract people to live here.

Age Group for Male

No.RangeNumber of Population

1.0>481,769

2.5>9112,079

3.10>14120,271

4.15>19121,594

5.20>24111,629

6.25>2984,524

7.30>3475,133

8.35>3970,922

9.40>4472,915

10.45>4973,477

11.50>5469,208

12.55>5958,730

13.60>6448,316

14.65>6932,971

15.70>7426,210

16.75>27325

Male age group in Perak Tengah was shown the most dominant age is 15-19 years. But for the target group which is adult group the dominant age group for male in Perak Tengah is 35-39, 40-44 and for this group of people, they will start to think about want to own a property for their family and their golden age, so this age group also can increase the number of prospect buyer for our property.Age Group for Female

No.RangeNumber of Population

1.0>482,626

2.5>9110,394

3.10>14119,521

4.15>19122,220

5.20>24101,924

6.25>2975,013

7.30>3468,763

8.35>3968,474

9.40>4473,904

10.45>4971,741

11.50>5467,434

12.55>5958,405

13.60>6449,675

14.65>6932,661

15.70>7429,079

16.75>33,881

Age group for the area of the Perak Tengah show the most dominant age group for female is 15-19 years. However for the age group that we target to buy our property is adult, which is 30-34 and 35-39 the dominant age that started to plan their life so, this age group also can increase the number of prospect buyer for our property.5.4 Income Level in Perak Tengah

Income at Perak show the highest range of income is RM2500- RM 5000. This show the level of living standard of Perak started to increase. Other than that this group of income are afford to buy our house, according to Bahagian Pinjaman Perumahan Perbendaharaan Malaysia, the qualification to get loan for income RM 2500 to RM 2999 can reach to RM280,000 while our prospective price only about RM 175,000-RM 200,000. So this can guarantee the prospect buyer for our properties.

5.5 Ethnic Group in Perak Tengah

The highest ethnic group in Perak Tengah is Malay which is 92,096 of peoples. However, our target ethnic is Chinese which is 1,291. This is because the Chinese like to buy the property especially house. So this can guarantee the prospect buyer for our properties.

6.0 COMPETITIVE ANALYSIS Aim of this section: To study the demand rates of similar type of property situated within the study market. The existing terrace houses developments situated within the selected market will be analysed based on the following criterion:- Detailed listing of competitors facilities, attractions and other relevant information. Existing and future competitive development nearby neighbourhoods such as Hua Yang Berhad, Malaysian Resources Corporation Berhad (MRCB) and Dikir Maju Sdn Bhd are analysed to provide an analysis on unit sizes, pricing, type of property developed, brief tenancy profiling, take-up or occupancy rates and status of development.The competitor analysis can be divided by two types which is direct and indirect competitor. In this analysis, we also include their weakness and strength which is important to recover this project development.6.1 Direct and Indirect Competitors

6.2.1 Direct competitorA direct competitor means the project development which has similar characteristic such as type of property has been develop by other developer in the surrounding of proposed development. For the first competitor is Malaysian Resources Corporation Berhad (MRCB) their project is consisting of Single storey terrace houses, Double Storey Terrace Houses and Single Storey Semi Detached. Their project are more in Taman Teknologi Seri Iskandar area or know as SIDEC which is about 2 Kilometre from the site. The project is consist of Single Storey Terrace Houses and Single Storey Semi-Detached Houses the project is located at SIDEC. While, the Double Storey Terrace Houses is located in Taman Iskandar Perdana, and Taman Gemilang. In Taman Gemilang, the design of houses is very good but they poor in accessibility while in Taman Iskandar Perdana, they use low quality of hardware although their location is strategic due to next UiTM Seri Iskandar. The current price for Double Storey Terrace Houses tag by MRCB is reach RM 304,058.00 per unit. Malaysian Resources Corporation Berhad (MRCB) also in process selling a new residential area. It is a bonus for this competitor due to its proximity to UiTM Seri Iskandar but poor of their workmanship. Other direct competitor is Agro-Mod Industries Sdn Bhd which own by HUA YANG BERHAD. The project of this competitor consist Double Storey Link Houses, Double Storey Terrace houses, Single Storey Terrace Houses, Single Storey Semi-Detached, Double storey semi- Detached Cluster and Double Storey Semi-Detached. This competitors projects are likely more in Bandar Universiti which is near to commercial area such as Tesco, Kentucky Fried Chicken (KFC) and Secret Recipe but their site area is former mining land. The project of competitor area is near to project development. This competitor also keep on develop new housing scheme in the area of Seri Iskandar refer to the demand which keep in increasing. In addition, the location of our project is surrounding of HUA YANG houses which Taman Jasmine, Lily, Gardenia and Iris. For example there are project of HUA YANG BERHAD which is Single Storey Terrace Houses and Double Storey Terrace Houses which are under construction. The selling price for Double storey houses price tag by HUA YANG is from RM196, 800 to RM 333, 810 per unit. 6.2.2 Indirect competitorThe indirect competitor means developer of competitors built different types of property such as the propose development is for industrial and commercial purpose or other than landed residential scheme such as Flat, Apartment, bungalow and office. For development of commercial purpose currently there are two main blocks which consist of the shop lot area.Firstly, Shop Houses in Bandar Seri Iskandar has been develop by Malaysian Resources Corporation Berhad (MRCB). Currently, this place had high demand because in front of residential area such as Taman Iskandar Bestari in SIDEC and located next to educational area such as Universiti Teknonologi Mara (UiTM).Besides that, there are also have other competitors such as Dikir Maju Sdn Bhd. This competitor under develop new project namely Seri Iskandar Business Centre (SIBC) .The project is located between area of Bandar Universiti and Taman Teknologi. The project will be recorded as first shopping mall in the area of Perak Tengah. This project can give benefit to other developer who built residential scheme because Dikir Maju project will increase job opportunities and indirectly increase the demand for houses in that area.Agro-Mod Industries Sdn Bhd which own by HUA YANG BERHAD also has develop commercial area which is located at Bandar Universiti and near to Taman Maju. This commercial area give high potential to gather high demand because the places are located near with residential area such Taman Maju and Educational Area such as Universiti Teknologi Petronas (UTP). From our research, they want to named their area as Pedestrian Mall. They are also in process to build bungalow houses surrounding project development in Bandar Universiti.

6.2 Taman Bandar Universiti by HUA YANG BERHAD

Figure 1: Taman Jasmine in front of project development

Figure 2: Double Storey Shop Office in Bandar Universiti

Figure 3: Example of Double Storey terrace House by HUA YANG BERHAD6.3 Bandar Seri Iskandar or SIDEC by MRCB

Figure 4: Shop Houses in SIDEC

Figure 6: Taman Gemilang

Figure 5: Taman Iskandar Perdana

6.4 Proposed Development by DIKIR MAJU

Figure 7: Broacher of proposed development by Dikir Maju.

Figure 8: Show room of Seri Iskandar Business Centre (SIBC)

7.0 SWOT ANALYSIS Strength Weakness Opportunity Threat WHAT IS SWOT ANALYSIS? S.W.O.T is an acronym for the words: Strength, Weaknesses, Opportunities, and Threats. A SWOT analysis evaluates a proposed projects strengths, capitalizing on them in order to mitigate its weaknesses. It also helps target opportunities to minimize a proposed developments threats from direct and indirect competition. The S.W.O.T analysis presents a key summary of data relevant and crucial to the proposed development. In addition to presenting a clear and quick guide to the projects inherent attributes, such analysis also highlights positive features that can effectively be used for marketing purposes.

7.1 THE STRENGTHS1. LocationThe construction area is the perfect location for the project of purposed build residential area. Subject site is located near Taman Lakeville, Seri Iskandar, and Perak. To access to this place is through Ipoh-Lumut highway Located about 40 km from Ipoh, the township is close to the proposed site is Bandar Seri Iskandar. The distance subject site from Taman Maju / Bandar Universiti and the distance subject site from Main Road/Highway Ipoh-Lumut is 2 km.This strength of this site because there are in the area which is rapidly developed with many facilities and comfortable environment.1. Surrounding developmentAt the proposed site we can define the surrounding have the mixed development namely industrial, residential, higher institution and also commercial making it the centre of attention after Ipoh. The proposed site for development is also near to Local Government Offices such as Pejabat Daerah Perak Tengah and Headquarters of Perak Tengah Police. Besides that, have more residential area such as Taman Maju, Taman Lakeville and Taman Iskandar Perdana. Furthermore, subject site is also located nearer to Bandar Universiti. At Bandar Universiti it has a higher institution such as Universiti Teknologi Mara (UiTM), Universiti Teknologi Petronas (UTP) and Insitut Kemahiran Belia Negara(IKBN). It contains of lecturer, students and staffs. They will be choosing the house is nearer to that institutions. The commercial area such KFC, Hotel Sri Iskandar and Petronas also near with proposed our site. iii.AccessibilityThis site is has very easy access. This site can be access through the highway Ipoh-Lumut. There is also no congestion in this area because of the very good road system. Furthermore, it also makes easy the suppliers of construction materials to send the construction materials such as cement, sand, and others to the construction site for the construction works. Other than, the future buyers also can easily go to the proposed site because of the very good of access. The propose site also near to other residential with the completed infrastructure and facilities like road, lighting road and signboard.7.2 THE WEAKNESSES

1. Environment

The environment at the site is near with a factory, but the factory was operate for operation of light industries .So it wasn`t give too much effect to the resident. Other than that this site also will be a bit busy, it is because near the site build the Tesco and Billion and also has manufacturing it will make the area of our site become more crowded and full with people and transport such as cars, motorcycle, and lorry.

1. Topography

The topography of this site is mining land and flat land. Because of that, the developer should do manyprocesses to get approval for the land. Need muchcapital requirement and equipment to begin thisproject. Fill inworksworkingshould be done. It requires long term process to fill in work. Developersshould ensuresafety oflandtolive and proper planning should carry out, so this give disadvantages when developer do a construction and will increase cost of site clearance.

7.3 THE OPPORTUNITIESOur subject property is located at near to Taman Lakeville, Seri Iskandar, and Perak which is new town that is introduced to develop the area of Bandar Seri Iskandar. Our surrounding area is fully with development which can attract buyer and people to come for live and work in Bandar Sri Iskandar. The location is very strategic for build the purposed build residential building because it is easily accessible via Ipoh-Lumut highway located about 40 km from Ipoh; the township is close to the proposed site is Bandar Seri Iskandar. This is about 2 Kilometer. The opportunities of subject site can be identified as follows:i. Housing Needs Seri Iskandar town is majority occupier with government servant because the area is administrative centre .So, supply for housing scheme are needs for lecturer, police, teacher and others. That is because many higher institution such as Universiti Teknologi Mara (UiTM), Universiti Teknologi Petronas and IKBN. The supply of houses also will be needed for student. The total numbers of student increase time to time so that the developer required providing more housing. The increasing of the population and household are makes the housing need is increasing.ii. EconomyThe major sectors of economy in Seri Iskandar are commercial, and manufacturing. Commercial is still the main economic sector, providing the majority of the population's employment.The commercial sectors are such as KFC, Hotel Sri Iskandar and Petronas. Business activities in Sri Iskandar include wholesale, groceries and services. People will go to Bandar Seri Iskandar to get job and they need housing to live. So this will be attracting the prospect buyer in the future.

iii. IndustrialIn the surrounding area of subject property found any industrial which not far away from the subject property. Distance from the subject property to industrial in range about 4 km only. Furthermore, this industrial offer many job opportunities to the public and also to the resident that live at our residential area, so with job opportunities that offer by this industrial may be the ratio of the unemployment in this area will decrease and the income level will increase and directly the purchasing power to purchase our property that are double-storey terrace houses will increasing.

7.4 THE FUTURE DEVELOPMENTFrom the analysis, this site is suitable to develop the residential area because there are a lot education institution such as UiTM, IKBN, UTP and public schools. So our residential houses will get the high demands from lecturers, teachers, staff and students at UiTM, UTP and IKBN. There also have a lot of commercial area at our residential area. Besides, Billion and shophouse will be built at SDEC so that will attract people to live in that area because completed infrastructure and facilities. So that will increase the demands for our houses will automatically increases.

7.5 THE THREATS

i. Competitors Competitor is one of threat in the proposed development at this area it is because a lot of residential area at this area such as at Taman Maju, Taman Lakeville and Taman Iskandar Perdana. The other residential area will challenge our future residential area in the context of selling the houses. Even though the demand is high at our site area, the supply of houses also getting high because the developer likes to make the development of residential scheme at Bandar Universiti.i. Category of landLand status that result for building land which is for commercial land (private institution education). Category of land which is stated for building so it is requires longer time to convert the category of land into residential.

8.0 Proposed Development

To prepare site for double storey terrace house medium cost that comfortable, fully with facilities and with attractive design. To prepare additional residential room for workers in Perak Tengah district To develop the site from vacant land because the original planning is for commercial building site-private institutional education is not suitable, and better if this site became a residential place compared with private institutional education. To develop the land to be more economical and can give high return to state authority and Majlis Daerah Perak Tengah and other agency involve. To build 78 units of double storey terrace house medium cost with size area 22x70

a) Purposed house design

b) 1.Ground floor

Double storey terrace houseStructure : reinforce concreteRoof structure : concrete roof tile Ceiling : skim coat/ plaster ceilingWall : ceramic wallDoor :front : decorative timber door :bath room : PVC door :others door: timber doorWindow : front : aluminium frame with glass : back : adjustable louvered window Wall finishes : kitchen : half tiles Bath room: half tilesFloor finishes : tiles

2. First floor

8.1 Facilities

Public service and utilities is important thing that have to consider by every developer before doing development, especially for residential purpose It is to make sure our resident feel more comfortable with public service and facilities. For our development, there are no facilities provides in our development We only used existing public service and facilities nearly our development as to economize the cost development.

8.2 Selling price

The selling price of property is affordable and reasonable with surrounding people. It is affordable for the residents or potential buyer so that the property can be sold successfully. The selling price is considered suitable and it has been compared with others double storey terrace house medium cost near our development to make sure the property is avoidable.After consider all aspect, we have made decision the selling price for our development which is double storey terrace house medium cost RM 265 305. The selling price of this project are not accordance with the past selling price in the Property Market Report because our company consider , the selling price for this project not suitable to be use for transaction or selling price . This is because, this development involve high cost due to the increasing of materials and equipments prices. Moreover, this place is became more strategic due to rapid development growth occur in this area with several new development such as Pedestrian Mall, Billion shopping mall, Commercial building and other.

8.3 Rental Value

The rental value can be determined by comparing the price with similar property in surrounding development area. We did not use Property Market Report as to determines the rental value for our development because there is no data about rental value for double storey terrace house in Perak Tengah. So, we have used sales evidence as to determines our development rental value. We have analysts several sales evidence around Bandar Universiti which located near to our development as to determine our development rental value. After make analysis with the comparable, we have considered that our rental value for this development is RM 1550 per month.

8.4 Target Market

Every developer has their target which means target people that will purchase the project. For Our company, we have target market for this development comprises of local people, businessman and government servant that work around Perak Tengah District especially in Bandar Universiti. The location of our development and surrounding give us specific target to focus. Our main target market is owner of the shop house shop office in the Bandar univesrsiti. We also target the lecturers from UiTM Seri Iskandar and Universiti Teknologi Petronas which located near our development. Besides, the teachers from school nearby our development also been targeted as our purchaser. Moreover, we also others target government servant likes police, Pejabat Perak Tengah Staff, doctor and others. Lastly, we also target investor outsides from Perak Tengah.

8.5 Project schedule

After considered all aspect, the period of our proposed development will takes about 3 years. First stage will take nine to ten month for site clearance and foundation works in our proposed site. For the second stage, it will take time about seven months which is for houses structure works such as column and beams. For the next six and seven month is for construction of the wall, building frame and other structure of the houses. For the other five to six month is for infrastructure works, such as build road, painting, cement and other installation for the houses. The final stage is for the testing of all the services for the development. If any lacking in the services or appliances in the building, developer can charge, repair or fixed it

Stages Times ( month )Work

19 - 10Foundation: Site clearance and foundation work.

27Building structure: constructed column and beam.

36 -7Construction: built walls, frame and other structure buildings.

45 6Infrastructure : paint, cement, wiring, and etc

54 5Final stages: testing all service in the building.

8.6 PROCESS REQUIRED FOR PROPOSED DEVELOPMENT

Development is a process that involves changing or intensifying the use of land to produce building for occupation. It is not the buying and selling of land for a profit: land is only one of the raw materials used. Others include building materials, infrastructure, labour, finance and professional services. (David Cadman and Rosalyn Topping, 1995). In general, before any developments wants to construct on that area the approval from the Local Authority must be ensure first. The developer must have got the planning permission from the regulatory bodies to make sure the developments that want to develop on that area is legal with the approval for permission. There are a few steps that must be taken along the planning process. The summarization about the planning is as follows:-The first practices that involves on the land developments process is to get vacant land from the authorities such as the Land Office or get with the purchase of vacant land from parties or any individuals. The explanation of the circumstances and the land must be proved by a title of the land. This is to ensure there are no barriers or obstacles that occur during or before the construction work is done. If there is several limitations to be done with the express condition instant conversion and release all the restrictions that arise. Any particular project either a land development, or a mixed residential project, or a simple building project requires authority approval at various stages of its development. A landed residential is one of the several technical components of the projects that needs approval authority. An efficient approval system for the project development is ideally required. Documentation of the approval requirements is essential and all requirements should reflect uniformity in standards and practises. The approval systems should be efficient and transparent. The form G is be submitted to the director General within 14 days of making an application of development to the relevant authority.

At the second stages, a developments proposal involves four main stages which require approval applications for the land matters, planning permission, building plan and for earthworks plans and road and drainage plans. Each applications process is provided for under the various related legislations namely National Land Code 1965, Town and Country Planning Act 1976 and Street, Drainage and Building Act 1974. Table 1: The planning processAt the third stages, all the documentations and applications need to submit to Sacreteriat of One Stop Centre. The One Stop Centre (OSC) Sacreteriat shall check and examine all documents submitted based on the checklist prepared. The checklist is covered for the simultaneous applicants for conversion and subdivision under section 124A National Land Code (NLC) or application for Surrender and Re-alienation under Section 21 4D National Land Code. Besides that. The OSC will also examine the application for planning permission, building plan approval, earthworks plan and application for Road and Drainage. If the application is incomplete, the OSC will request the applicant to submit necessary documents or plans. At the fourth stages, the Secretariat of OSC will distributes Application to the relevant departments. It will accompany documents to the relevant departments for processing. For the simultaneous application for conversion and subdivision will be processing by the Planning Department of Local Authority on that area. Land use conversion is a standard procedure that needs to be carried out first in any land/property development. Application for land use conversion must be comply with the National Land Code and must be lodged with the District Land Office. A proposed development shall be compatible with the established Structural or Local Plan of the locality. It is good practice for the developer, or the consultants, to meet with and consult the approving authorities to determine their requirements prior to submission. This will reduce the time for review, comment and processing of the application.

Submit application

Valuation Department, Town and Country Planning Department & Local AuthorityDepartment of Environment, State Economic Planning Unit

District Land Office

State Land and Mines Standing Committee (STANCO) Review

State Executive Council (EXCO)

Figure 1: the approval process flowchart for land use conversionA developer may apply to the State Authority for alteration or imposition of category of land use, removal from the land title expression to which the land is subject or the rescission or amendment of any express condition or restriction in interest to enable the developer to use or develop the land accordingly and for purpose other than that allowed at present (s.124 NLC). The form O will be submitted to the Director General on a monthly basis before the 14th day of the following month. This form applies to category of land use in relation to building and industry only. Where the State Authority approves any applications for the alterations of a category of land use s.124(1)(a), the State Authority shall direct that the category of land use applied for shall be endorsed on the document of title to the land and that the existing category (if any) shall be deleted. Furthermore, the State Authority may at its discretion impose such conditions as it think fit in addition to the payment of a further premium and the reservation of a new rent. In this instant, the State Authority has no power to direct that approval of applications for conversion of category of land use and subdivisions is conditional upon the registered proprietor surrendering his title in perpetuity in exchange for a 99 year State lease.

Section 124A allows applications for conversion and subdivision to be made simultaneously. This is aimed at speeding up the development of housing projects as upon land being converted, it needs to be subdivided into individual smaller separate title suitable for housing and for purpose of selling it to purchaser. The application must be forwarded in accordance with the relevant applications form, registration fees which RM 50 for per each unit, official search and copy of the land title.

Subdivisions of land is a process whereby land held under final title is sub-divided into two or more portions and each portion to be held by the same proprietor but under separate title refer to sec. 135 (NLC). The conditions for approval of sub-divisions lands that any necessary approval of planning authority has been obtained and that the shape of each subdivided lot will in the opinion of the State Authority suitable for the purposes for which it is intended to be used. For submission purposes, a development layout shall be proposed and signed by a Registered Planner. The application must be made in the statutorily form P and upon its approval, survey fees and land titles issuances fees must be paid in advance by the applicant.

For the processing of Planning Permission Application by the Department of Town Planning Local Authority, the process was referring to Development Plans and Planning Guidelines. Besides that, it will refer to the State Planning Committee and the National Physical Planning Council if required. They will prepare recommendation paper to the One Stop Centre Sacreteriat. The Director of Town Planning Department shall table the recommendation paper in the OSC Committee Meeting

At the fifth stages, the next step after land use conversion and subdivision is to apply Building Plan approval. The application shall be submitted to the Local Authority concerned and referred to the Departments of Fire and Rescue Services, Water Supply Corporation, Department of Sewerage Services, Tenaga Nasional Berhad and other related technical departments. For the building plan approval, the officer in the Building Department shall undertake the following process such check Form A refer to Schedule IIU Uniform Building By Laws 1984, receive comments from technical Departments and coordinate comments with the agreed layout plans. The Director of Building Department shall table the recommendation paper in the OSC Meeting.

The next stage taken is receiving comments by technical departments or other related agencies. The relevant departments will receive complete documents from OSC Secretariat and check the application. They will prepare and submit comments to relevant processing departments according to application and comments on land development submit to Land Office, comments on planning permissions and submit to Town Planning Department of Local Authority. Besides that, they will comment on building plan and submit to Building Department of Local Authority. The process take 14 days if a local plan is available.

The One Stop Centre Secretariat shall compile and coordinate all recommendations paper and issue letter of calling for meeting with meeting agenda to all members of the OSC Committee to consider and make decision on the application for planning permission and building plans. Moreover, the committee shall make recommendations for pre-computation plan and application for simultaneous subdivision and conversion. These documents shall be signed by Director of Planning Department of Local Authority.

Within 24 days, the Land Administrator shall prepare a recommendation paper to the State Director of Land and Mines to be tabled at the meeting of the State Executive Council for decision. The State Director of Lands and Mines shall inform the States Decision to the Land Administrator and make copy of the decision to the One Stop Centre Secretariat. On the next 5 days, the Land Administrator will inform the Applicant of the Decision on the Land Development Application of the subdivision that has been approved. Besides that, they will inform for every subdivision, the category, conditions and expressed condition (if applicable) as directed by the State Authority. additional premium rate and quit rent for every subdivision as well as other payments that need to be made. At the same time, the period for the payment of additional premium, quit rent and others and other conditions of approval as imposed by the State Authority.As the same time, the Land Administrator need to present the notice in Form 7G requesting the applicant to make the necessary payments within the stipulated time as follows:-i. Surveying fees if the survey is to be done by the Department of Land Survey; andii. Payment for the preparation and registration of the Qualified Title for every lot in the subdivision.For section 204D, the Land Administrator shall inform the applicant of the following:-i. The terms of the approval for each unit that shall be re-alienated;ii. The additional premium and tax rates for each unit that shall be re-alienated;iii. Period of payment of the additional premium, tax and other payments that is charged; andiv. The amount of premium in Form 5A in relation with each unit. The survey charges shall not be included in Form 5A if the survey is to be undertaken by a licensed surveyor and the Land Administrator has been given the assurance by the Board of Surveyors.At the next stages, the One Stop Centre secretariat shall inform the approval to the applicant on the decision of the application enclosing the approved layout plan, building plan and other related plan. Besides that, the OSC shall collect the approved documents signed by the YDP or through empowerment to the Director of Planning, Director of Building and Director of Engineering. The total time frame for the processing of simultaneous application is suggested as 92 days (3 months and 2 days). If the application falls within an area with the gazetted local plan, the normal time to process shall be 67 days which 2 months and 7 days).

An applicant for a housing developer license under the provisions of section 5 (3) of the Act shall submit his application in the form as may be determined by the Controller from time to time together with such documents and apply such other relevant particulars or information as may be required by the Controller. The fee payable upon every application for a license shall be fifty ringgit.Any misinterpretation of the particulars or information of this regulation shall be an offence under these Regulations.The Controller may, in his discretion, grant a license with or without attaching any condition or conditions thereto or refuse to grant a license.Moreover, the fee payable for a license under this regulation shall be one thousand ringgit per year or part of a year. A license shall be required in respect of each housing development and where a housing development is to be developed in phases, a license shall be required for each phase of such housing development.Besides that, a license issued under this regulation shall be in the form as may be determined by the Controller from time to time.

No advertisement or sale shall be made by any licensed housing developer without an advertisement and sale permit having first been obtained from the Controller.Any advertisement and sale shall be in accordance with the advertisement and sale permit as approved by the Controller. An applicant for an advertisement and sale permit shall submit his application in the form as may be determined by the Controller from time to time and shall supply the following:(a) a copy of the approved building plans;(b) two copies of the proposed advertisement including the brochures containing particulars (c) particulars containing selling price of every unit of housing accommodation in every housing development;(d) such other relevant particulars or information as may be required by the Controller.

The fee payable upon every application for an advertisement and sale permit shall be fifty ringgit. Any misleading statement, false representation or description of the particulars or information required under paragraph (2) of this regulation shall be an offence under these Regulations.

9.0 CONCLUSION AND RECOMMENDATION

As a conclusion, a feasibility study is a comprehensive analysis which provides concrete data and information on various aspects of a project so that an investment decision can be taken. The viability of a project is feasible when the real estate analyst determine that there is a reasonable likelihood of satisfying explicit objectives when a selected course of action is tested for fit to a context of specific constraints and limited resources Prof. James Graaskamp (University of Winconsin). The implementation of residual method to in financial analysis is to determine capital funding required and its sources. Residual method is implemented when determine the value of real estate which can be subject to development. Besides that, it used as magnitude and timing of cash flow and outflow. The proposed development must be a project that can gain profit to the parties and bring benefits to the owner. By that, using the financial analysis can examine whether the project can sustain its financial obligation with adequate working capital and generate enough funds to ensure adequate cash flow.Moreover, the calculate of financial analysis as a reason to final capping of a complete feasibility study and the returns of the design analysis. It can be as a guidance to the developer to proceed on that proposed development if it will bring the profit or can take other initiatives to make the way to solve the problems if any.

The calculation of residual method are as follows:- Gross Development Value (GDV)UnitPrice per unitTotal Price (RM)

Double Storey Terrace House

78@RM265,305RM20,693,790

Total78Total GDVRM20, 693, 790

Less (-)Gross Development CostLand Cost

6 acre@RM 30 per square metre.= RM728,400

Site Preparation Costi)Clearing siteii)Cutting, filling and levelling the site

@

RM80,000

= RM80,000

Building subdivision survey78 unit@RM 1,000 per unit= RM78,000

Preparation of title78 unit@RM50 per unit=RM 3,900

Infrastructure Cost

78 unit@RM5,000 per unit=RM390,000

Construction Costi)Double Storey Terrace House

78 unit

@

RM 150,000 per unit

= RM11,700,000

Professional Feesi) Architectii) Engineer

1.5%3.5%@@Construction costInfrastructure cost=RM175,500=RM13,650

Administrative Overhead

2%@GDV=RM413,875

Contingencies

5%@Construction cost & infrastructure=RM604,500

Contribution to authorities@= RM 130,000

Finance cost9%@Full cost, half development period(1.5 year)=RM1,932,906

Developers profit15%@GDV=RM3,104,067

Total GDC=RM19,354,798

Gross Development Value-Gross Development Cost= Residual Value / Net ProfitRM20,693,790 - RM19,354,798 = RM1,338,992.Market value of the Land= Residual Value X PV @ 10% for 3 years = RM 1,005,985. Profit on ValueProfit/GDV@100% RM1, 338, 992/RM20, 693,790@100 = 6.47% Say 6%Profit on CostProfit/Cost @ 100% RM 1, 338, 992/RM19, 354,798@100 = 6.92% Say 7%

Based on the findings of the study, a conclusion will be made on the market potential and viability of the proposed residential project at Bandar Universiti, district of Perak Tengah, Perak Darul Ridzuan and the land area is 6 acres (24,280 square metres). The project viability is dependent on the ability of subject development to capture existing and future residential market in the area. Based on the calculation, the development is positive profit of the development. After the calculation, the profit on cost shows a percentage at 7%. Besides that, the profit on gross development value is at 6% respectively. Therefore, this shows that this project will gain profit if the project is to be realized. It shows the profitability of a development that used feasibility studies where land cost or value is a known factor and is used as an item in developments costs. The residual value is the profits of the project where the development potential of a property is based on its highest and best use. As a recommendation, we are strongly recommend to our client which Miss Nur Nazihah Bt Chuweni to proceed on that proposed development because it shows the big potential if the construction work is continued. From the observations shows that the area of Sri Iskandar will be rapidly growth on the future and the residential house scheme will be more develop on that area. By these big opportunities, we are advice to our client to not miss to this opportunity. It is a compromise between individuals needs and social requirements. This proposed development shows technically possible, legally permissible, and financially viable.

10 Appendices

11 References

Miss Nur Nazihah Binti Chuweni Encik Salman Bin Mohd. Idris, an officer at Majlis Daerah Perak Tengah Officer at Town Planning Department, Departments of Land and Mines, Ipoh. Statistician at Bangunan Persekutuan Ipoh Quantity Surveyor at MRCB Data from Property Market Report 2007 2011

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