DEVELOPMENT ECONOMICS (QSB 4223)

DEVELOPMENT ECONOMICS (QSB 4223)

PORTFOLIO SEMESTER 6

DEVELOPMENT ECONOMICS (QSB 4223)

Lecturer: Mr Ho June Khai 
                  Miss Dianne Kok Hui Wen

Purpose of study development economics

Development Economics enables the student to understand the basic principles of economics and its link to the real world of construction. Besides, this subject also enable understanding of the whole process of property development. Moreover, improve the understanding of the contribution of feasibility study in property development. The author was also came to learn the overall mechanism of the finance system in the construction industry.



Objectives

In this subject, the basic principles of economics are introduced to students. Since students are going to involve in the construction industry, this subject is very useful as it is link to the real world of the industry, instead of just studying based on books and theories. Last time, students are concentrated on site matters, but now students are explore wider to the understanding of the whole process of property development. There are many feasibility studies in property development, so students are able to enhance the understanding the contribution of these studies. Projects in construction industry normally involved huge amount of monetary term, a systematic finance arrangement will help the projects run smoothly. As a result, students are able to understand the general mechanism of the finance system in the industry through this subject.


Learning Outcomes

 Studied to recognize and recall the involvement of the construction industry to a nation’s growth economy. Also, learned to calculate the developer's budget through assignment. Author now is able to executed the cost-benefit analysis in the early stage of investment proposal and executed the valuation system to help on decision making during the feasibility stage. In addition, author able to classified various source of finance available in the construction industry. In this study, author now able to planned the requirement in a quality market research.

Test

After few months of studying this subject, student must prepared to face the mid term test which to test the students memories of what have learned from past few months and also to observe whether student able to apply the theories correctly. The test is about 2 hours where students must well prepared and well organized the time to answer the question. These test mainly consist of subjective questions as well as practical problem questions (where recall, analysis, evaluation and application of concepts learnt are necessary to answer the questions competently). 

Topics:

1. Introduction
2. Property Development
3. Property Investment Economics
4. Factors in Property Development
5. Development Appraisal
6. Cost-benefit Analysis
7. Market Research
8. Development Finance

Group Assignment 

Main aim of this group assignment is to help students develop a deeper appreciation of the concepts learnt in the module by applying them in the problems given in the assignment. This assignment is about developer wants to develop residential units and commercial units on a land with acres. Students are required to prepare few things for this assignment for instance calculate the number of units houses and shops to able built in the land, investment appraisal, cash inflow, cash outflow and combined of cash outflow and inflow.

After done the group assignment, author require to refer the previous works to find the net present value (NVP). The approaches to find this NPV, author must get the cash inflow and cash outflow amount only able to find out the NPV. Later on, author required to explain and comment the viablitiy of the project based on the result of NPV.