PAST YEAR DA (THEORY)

JUN 16

1. Describe 4 types of project finance in property development

2. Explain 5 factors that are normally considered by bank and others financial institution in
the application for financing purpose of development project.
3. Discuss how sensitivity analysis using Sensitivity Index (SI) can assist the valuer in
improving the results of a development appraisal.
4. Describe how probability analysis and simulation can support the valuer in undertaking a
development appraisal and enhance the quality of advice given to developers particularly
on the assessment of risk
1. Illustrate the appropriate method to calculate the cost of finance in the sell than build and
built then sell development concept.
2. Explain 2 factors that affect the viability of a development project.

DEC 2016

PART A

1. Discuss using suitable example 3 limitations of the residual method of valuations.

JUL 2017

1. Discuss the important of feasibility study in development. The discussion should focus on
the five major aspect of feasibility analysis.
2. Explain how the study can be undertaken for commercial project.

3. Discuss how sensitivity analysis using Sensitivity Index (SI) can assist the valuer in
improving the results of a development appraisal.
4. Describe how probability analysis and simulation can support the valuer in undertaking a
development appraisal and enhance the quality of advice given to developers particularly
on the assessment of risk

JAN 18

1. Explain the use of IRR as a measure of viability in the context of property development
and the step involved in deriving it.

DEC 18

PART A
 1. Factors contributing to failure of a residential development project

PART B

2. Discuss the content of market and economy feasibility that need to be prepared within
feasibility study.

JUNE 2018

1. Identify the aspect to be considered by a developer when planning for the financing of
their development
2. Using the example of any residential development, demonstrate your understanding by
explaining these four steps in conducting Monte Carlo simulation analysis (MSC)
3. Sensitivity Index (SI) within the sensitivity analysis is designed to measure the sensitivity
between variable. Explain the use of sensitivity index and it rule of thumb to decide
whether one variable is sensitive to one another.

DEC 2019

1. Explain three (3) factors that would be considered by potential supplier of finance before
they agree to supply finance for development project.

2. Identify the financial viability criteria for a proposed development project from the
perspective of; (1) Payback Period by Period (PBP) cashflow approach and (2) Developer's
profit ratios on Gross Development Value (GDV) and Total Development Cost (TDC). You
may use several examples to support your answer.

3. Discuss the importance of sensitivity analysis in development appraisal and how it can
provide assistance to the valuer

JUNE 2019

1. Identify the 4 steps of MCS using suitable example in quantitative risk analysis for
development project
2. List down and explain the factors affecting project financing.