UNIVERSITY OF TECHNOLOGY MARA SHAH ALAM FACULTY OF

ARCHITECTURE, PLANNING AND SURVEYING

GROUP ASSIGNMENT:

FEASIBILITY STUDIES ON PROPOSED

DEVELOPMENT LAND

COURSE : DEVELOPMENT APPRAISAL

COURSE CODE : RES551

LECTURER : DR WAN NORHISHAMUDDIN WAN RODI

: SR KHOLIM SAHRAY
CLASS : AP2254A
DATE OF SUBMISSION : WEEK 14

PREPARED BY:

NAME STUDENT ID
MOHAMAD AIMAN HAZIQ BIN MOHD ROSIL 2021148359
NUR LIYANA ATHIRAH BINTI SABRI 2021110599
FARAH NURMUNIRA BINTI MOHD KHAIROOL ZAMAN 2021928147
WAN UMAIRAH BINTI HAIRE 2021539629
MAIZATUL AINA FARAH BINTI KARIM 2021337973
Contents
1.0 ACKNOWLEDGEMENT 1
2.0 EXECUTIVE SUMMARY 2
3.0 INTRODUCTION 3
3.1. Objectives 4
3.2. Terms Of Reference 4
3.3. Scope Of Work 4
3.4. Methodology 5
3.4.1. Primary data 5
3.4.2. Secondary data 5
3.5 Organization Chart Of Max Properties Sdn Bhd 6
4.0 SITE ANALYSIS 7
4.1 Date Of Inspection 7
4.2. Particular of Title 8
5.0 SITE DESCRIPTION AND ANALYSIS 10
5.1 Site Description 10
5.2 Neighbourhood And Surrounding Areas 11
5.3 Institutional Areas 12
5.4 Commercial Areas 12
5.5 Public Facilities And Amenities 13
5.6 Assessment Of Site Feasibility: Conclusion 15
5.7 Existing Future Development 15
5.7.1 Present/Existing Development 15
5.7.2 Site Advantages 16
5.7.3 Process Required For Proposed Development 15
5.7.4 Highest And Best Use 18
5.7.5 Conclusion Of Site Description 18
6.0 SOCIO-ECONOMIC ANALYSIS 19
6.1 Selangor Data Population 19
6.2 Selangor Employment Data 20
6.3 Selangor Household Income Data 22
6.4 Comparable Properties 24
6.4.1 Double Storey Terrace House 24
6.4.2 Single Storey Terrace House 25
 6.4.3 Shop Lot 26
7.0 PROPERTY MARKET ANALYSIS 27
7.1 Selangor Economy 27
7.2 Selangor Property Market 28
7.3 Transaction of Property in Selangor 29
7.3.1 Number of Transaction (unit) 29
7.3.3 Number of Property Transacted (unit) in Petaling Jaya 32
7.3.4 Value of Transaction (RM) in Petaling Jaya 33
7.4 Market Supply Analysis 34
7.4.1 Existing Supply in Petaling Jaya 35
7.4.2 Completion Supply in Petaling Jaya 36
7.4.3 Incoming Supply in Petaling Jaya 37
7.4.4 Start Supply in Petaling Jaya 38
7.4.5 Planned Supply in Petaling Jaya 39
7.4.6 New Planned Supply in Petaling Jaya 40
7.5 Market Demand Analysis 41
7.5.1 Factors Affecting Demand on Commercial in Petaling Jaya 44
7.7 Demand Analysis For Commercial Property 43
8.0 PROPOSED DEVELOPMENT 46
8.1 Introduction Of Proposed Development 46
8.2 Layout Plan 47
8.3 Concept Of Proposed Development 47
8.4 Types Of Development 51
8.4.1 Residential development 50
Single Storey Terrace House 51
Double Storey Terrace House 52
8.5 Other Than That We Also Proposed A Development Of A Double Storey Shop 52
Lot 51
9.0 MARKETING PLAN AND STRATEGIES 53
9.1 Target Market 53
9.2 Marketing Tools 54
9.3 SWOT Analysis 55
10.0 FINANCIAL ANALYSIS 57
10.1 Cash Flow Method 57
10.2 Total Development Cost (Residual Method) 57
 10.3 Period by Period 57
10.4 Net Present Value (NPV) 57
10.5 Internal Rate of Return (IRR) 57
11.0 HIGHEST AND BEST USE 58
12.0 CONCLUSIONS AND RECOMMENDATIONS 59
13.0 REFERENCES 60
14.0 APPENDICES 61
1.0 ACKNOWLEDGEMENT

Alhamdulillah, firstly, thank you to Allah SWT for his blessing and mercy and we were
able to complete our assignment before the due date successfully as RES551, Development
Appraisal within the time submission given. Thank you so much to our lecturers, Dr. Wan
Norhishamuddin Wan Rodi and Sr Kholim Sahray for guiding us through all the time in finishing
our assignment. Without his guidance and help, we would be unable to complete this
assignment as perfectly as he wanted. Without his assistance, our group may not be able to
do this assignment but he leads us by explaining all of the points in the task and providing us
with references.

We would also like to thank our parents because they always support us all the time
such as giving us moral support in order to complete this assignment until we manage to
complete it.

Thank you and congratulations to each of our group members for giving a good effort
and full cooperation to finish the work. Without effort and commitment from each of the group
members, we could never finish this task successfully.

Lastly, thanks to our fellow classmates who have helped us by giving us ideas and
information in order to finish this task during completing this assignment. We would like to
express our appreciation for their time and patience throughout the entire process.

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2.0 EXECUTIVE SUMMARY
2.0.1 Business Description

Max Properties Sdn Bhd is a Malaysia-based development company focusing on

valuation, consultancy, property management, and real estate agency. The primary area of
the company’s development is in Klang Valley.

2.0.2 Site Description

The land chosen is at mukim of Bandar Petaling Jaya and the district of Petaling Jaya.
It has an approximate land area of 4.168 hectares / 10.3 acres. The topography of the land is
flat in terrain and slightly rectangular in shape. The site has accessibility where it can access
federal highways and also, the site has public transportation facilities which are a bus terminal
on Jalan Othman, the rapidKL of Taman Jaya and Asia Jaya as well as the KTM Seri Setia.

2.0.3 Proposed Development

Max Properties Sdn Bhd has decided to propose a mixed development project consisting
of shop lots, single-story, and single-story semi-detached houses. The concept of the
development is “Smart Green Neighborhood” and the selling concept is “sell then built”.

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3.0 INTRODUCTION

A feasibility study is a thorough examination of all critical aspects of a proposed project

in order to determine its chances of success. Return on investment, or the amount of profit
generated by a project, can be used to define success in business. However, there are so
many other important factors, such as community reaction and environmental impact, that may
be identified as positive or negative. Although feasibility studies can assist project managers
in determining the risk and return of pursuing a course of action, several steps must be taken
before proceeding.

A feasibility study determines the viability of a proposed plan or project. A feasibility

study examines the viability of a project to determine its likelihood of success. The study is
also intended to identify potential issues and problems that may arise during the course of the
project's implementation. Project managers must conduct a feasibility study to determine
whether they have enough of the right people, financial resources, and technology. The
research must also determine the return on investment, whether it is measured in terms of
monetary gain or societal benefit, as in the case of a non-profit project. A feasibility study is
an assessment of the practicality of a proposed plan or project and analyzes the viability of a
project to determine whether the project or venture is likely to succeed. The study is also
designed to identify potential issues and problems that could arise while pursuing the project.
Some examples of feasibility study are a real-world example conducted by the Washington
State Department of Transportation with private contributions from Microsoft Inc.

Besides that, a mixed development is a residential property that is linked to larger

business, retail, entertainment, or even transportation amenities. It is a vast integrated
community with everything you would need for exciting modern life in one location. As you
might expect, these initiatives tend to come up in big urban regions like the Klang Valley,
therefore comparable possibilities are unlikely to emerge in rural Perak very soon. The
individuals who are the residents in Malaysia's big towns and cities, these advancements are
opening up new avenues for urban life. Many of Malaysia's new mixed developments are
located in the capital, Kuala Lumpur, which may be contributing to the increase in supply of
luxury apartments.

3.1. Objective

The objective for this assignment is to understand and ability to prepare feasibility
studies and assess the viability of property development proposals.

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3.2. Terms of Reference

The proposed development site has been inspected on 17 November 2022 and all the
information regarding the proposal development have been collected. The proposed
development land is carried out at PT250 (previously Lot13), Section 32, city of Petaling Jaya,
Petaling area, Selangor with an approximate size of 10.3 acres equal to 448973 square foot
(sqft) nestled at a very strategic location within the vicinity of Avon Building and Cycle &
Carriage along federal highway. Type of property for this land is industrial land in Petaling
Jaya.

3.3. Scope of Work

Following are the scope of works that will be carried out in this report achieve the
objectives:

i. To carry out detailed site analysis.

ii. To carry out an assessment of the surrounding development, existing infrastructure,
facilities, amenities, and accessibility of the site.
iii. To carry out macro and microeconomic studies.
iv. To study planning considerations and requirements.
v. To conduct demand and supply analysis of the proposed properties.
vi. To identify the target market.
vii. To assess the strengths, weaknesses, opportunities, and threats (SWOT) analysis.
viii. To advise on project strategy based on its profitability and viability as well as other
issues relating to property development and investment.
ix. To study the higher and best use of the land.
x. To prepare a proposed development plan and shall include the followings:
a. Development concept
b. Layout plan
xi. To conduct financial analysis to determine the project viability using the following
method:
i. Residual method – Developers’ Profit.
ii. Cashflow method – Period by Period, DCF–NPV and IRR.

The analysis should address the sensitivity analysis, particularly on the

development variables that are involved as well as the assessment of the financial risk
of the proposed development.

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3.4. Methodology

In this regard, there are certain approaches utilized to get information relevant to
prepare feasibility studies and the viability for the planned development. The market and
feasibility research for the planned development was conducted using the following
methodology.

3.4.1. Primary data

● Inspection of the proposed site.
● Take relevant information regarding the facilities, utilities, accessibility, the
existing development and also on-going project.

3.4.2. Secondary data

Refer to the authorities that involved in giving information relating to the proposed site
and development such as:

● NAPIC.
● Department of Statistics Malaysia.

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3.5 Organization Chart of Max Properties Sdn Bhd

GROUP MANAGING
DIRECTOR
MOHAMAD AIMAN
HAZIQ BIN MOHD
ROSIL

MARKETING
EXECUTIVE DIRECTOR MANAGER
MAIZATUL AINA FARAH
BINTI KARIM NUR LIYANA ATHIRAH
BINTI SABRI

PROPERTY MANAGER FINANCIAL

FARAH NURMUNIRA MANAGER
BINTI MOHD WAN UMAIRAH BINTI
KHAIROOLZAMAN HAIRE

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4.0 SITE ANALYSIS

We inspected the planned location, which is located in Mukim Rawang, Selangor, in

December 2020. We discovered during the inspection that the intended site would be a
strategic and appropriate development site. The information obtained throughout the course
of this project will assist us in reaching a decision and conducting an investigation into the
planned project that will be implemented on that site. The projected development for this
project will be good and will not cause any issues in the area to promote mixed development.

All of the important information that we gathered may assist us in constructing this
development proposal report to ensure that this study is efficient enough to be utilized as a
guideline to carry out the planned initiatives. The information is gathered from various
government agencies to aid in various analyses that will be included in the proposal report for
site analysis, property market analysis, socioeconomic analysis, and competitive analysis.
Furthermore, this development proposal report aids in determining if the project is viable and
should be advanced to the next phase of development or not.

4.1 Date of Inspection

We have inspected our subject property on Wednesday, December 2, 2020.

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4.2. Particular of Title

The total land that we proposed is 10.3 acres (448,973 square feet).

Item Description

Type of property Industrial land in Petaling Jaya

Subject land Lot PT250 (previously lot 13), Seksyen 32, Bandar Petaling Jaya,
Selangor.

Size 10.3 acres (448,973 sqft)

Tenure 99 years (expiring 2116)

Land use category Industrial

Express condition Industrial

Current usage Industrial gas manufacturing plants, supporting facilities, and office
building.

Surrounding area Established and matured industrial, commercial, and residential

developments.

Connectivity Accessible by Jalan 222, Jalan 225, and Jalan 229 – connecting to
the federal highway to other parts of Klang Valley.

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4.3. Location of Land

4.4. Land Visual Arial View

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5.0 SITE DESCRIPTION AND ANALYSIS

5.1 Site Description

Our development property is a parcel of land that consists of 1 title deed that is located
in Section 32, Bandar Petaling Jaya, Selangor. The land is approximately 10.3 acres nestled
at a very strategic location within the vicinity of avon building and cycle and carriage along the
federal highway and the total land area that will be subject to the final measurement is
estimated to be 10.3 acres. The property is close to a well-planned township with a variety of
industrial businesses, a transportation hub, a mosque, and close-by residential areas. All other
areas of Petaling Jaya and Kuala Lumpur, including Subang and Klang, are easily accessible
via quick direct links to the federal highway. Residents who do not have their own vehicles can
still get around through the buses that travel along the main streets of this modern suburb.

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5.2 Neighborhood and Surrounding Areas

In the neighborhood of Petaling Jaya, Section 32 is a commercial district. Initially

planned as a satellite township for Kuala Lumpur, Petaling Jaya City is composed primarily of
residential and light industrial areas. There are various residential schemes consisting of
single and double-storey terrace houses, semi-detached houses and apartments nearby the
proposed site such as Apartment Impian Seri Setia, Apartment Impian Baiduri. The high
population in this area will give positive impacts to the number of potential buyers.

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5.3 Institutional Areas

Enhancing one of the standards of living and the welfare of society both require
education. Few institutions, like the ones below, are located within 5 kilometres from the
proposed site which is Sekolah Kebangsaan Kampung Tunku, Sekolah Rendah Agama
Kampung Baiduri and Sekolah Kebangsaan Sungei Way.

5.4 Commercial Areas

Commercial areas are essential for economic activity and meeting local residents'
needs. The commercial properties that are located up to two kilometres from the potential site
are listed below.

1. MK Convenience Store
2. Subway
3. Speedmart
4. Otouch laundry
5. Coway

5.5 Public Facilities and Amenities

There are numerous public facilities provided within a 5-kilometers radius such as
below. The property is close to a well-planned township with a variety of industrial businesses,

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a transportation hub, a mosque, and close-by residential areas. In addition, there are public
transportation options located in the surrounding areas, including the KTM Seri Setia, the
rapidKL of Taman Jaya and Asia Jaya, and a bus terminal on Jalan Othman. One of Petaling
Jaya's last remaining secondary forest areas is Bukit Gasing. Residents can find Section 7,
also known as "the state", to the north. This area is home to a sizable commercial district and
many of the MPPJ's municipal buildings.

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5.6 Assessment of Site Feasibility: Conclusion
Based on the viability of the site and location of the proposed land of Lot PT 250 in a
district of Petaling, Bandar Petaling Jaya, Selangor, it can be concluded that the details
description of the subject land and its topography, location, neighborhood, which includes of
existing development, future development, accessibility, public services and amenities
available within the area of the subject property is a good prospect of developing a new mixed
development concept of smart city. It will eventually help to boost the market and draw more
potential buyers and investors to invest in the development by having all the positive scope of
site feasibility prospects.

5.7 Existing Future Development

5.7.1 Present/Existing Development

The project area is complemented by the diversity of its infrastructure and this is the
observations by our company indicated that the infrastructure now still in place:
(A) Educational
o Sekolah Kebangsaan Sungei Way
o Sekolah Kebangsaan Kampung Tunku Petaling Jaya
o Sri Emas International School
o Sri KDU International School
o Malaysia’s City University
o Sunway University

(B) Commercial
o PJ21 Commercial Center
o SS 2 Commercial Center
o Shopping mall 3 damansara
o Jaya Shopping Center
o Amcorp Mall

(C) PJ 599 Highway Center, Federal Highway

(D) Larico Infrastructure Sdn Bhd
(E) Instant Option Resources
(F) Kacon Construction
(G) Plaza Tol Petaling Jaya

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 5.7.2 Site Advantages

The advantages of our site developments are about our topography which is flat
terrain. This will facilitate the process during the development process on the land. In addition,
the strategic shape of the land is also one of the advantages of our site location because the
site location in the form of rectangular will be one of the attractions for our developments.
Moreover, the other advantages for our site location is good accessibility where it is located in
road frontage and first layer due to main road to enter the land which is in front of our site
location. Furthermore, our site location has a strategic location and it has its own aesthetic
value because, in the back of our site location there is a lake that gives advantage to our site
where the residents can get a good environment to do recreational activities.

5.7.3 Process Required for Proposed Development

There are several processes that should be held for proposed developments. In order
to construct any developments, approval from local authorities is necessary. Then, the
developers should get planning permission from the regulatory bodies to make sure the
developments that will be constructed legally with approval and to make sure there is no
problem will occur. So, there are some steps that should be taken along the planning process
in order to construct the developments.

First of all, they should get the title of the land from the land office or with purchase of
vacant land from other parties or any individual person. The circumstances and the land must
be proved by a title of the land. Moreover, the developer should obtain the RSS from Jabatan
Ukur dan Pemetaan Malaysia (JUPEM) to retrieve the RSS reading to identify the position of
the land that we want to develop. This is important because to make sure there is no problem
before and during construction works. If there are several limitations to be done with the
express condition and all the restrictions that arise should be settled before starting the
development process.

Secondly, there are four main stages required which are approval applications for the
land matters, planning permission, building plan and earthworks plans and road and drainage
plans. All the application has been controlled by the act which is National Land Code 1965,
Town and Country Planning Act 1976 and Street, Drainage and Building Act 1974.

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 For the third stage, all the documentations and applications should be submitted to the
secretariat of one stop centre at the local authority. The one stop centre will check all
documents that have been submitted based on the list that was prepared by our company.
The checklist is covered for the applicants for conversion and subdivision under Section 21a
National Land Code (NLC 1965) or applicants for surrender and re-alienation under Section
21 4(d) National Land Code 1965. Then, OSC will check all the applications about the planning
permission, building plan approval, earthworks plan and application for road and drainage. If
there are any incomplete documents, the OSC will request to resubmit the necessary
documents or plans but if the application is rejected the application should start from the
beginning.

At the fourth stage, after submission of all the documents and application, the
secretariat of One Stop Centre (OSC) will distribute the application to all departments that are
involved for the developments. Next, the simultaneous application for conversion and
subdivision will be processed by the proposed developments and it shall be compatible with
the established structural or local plan and consult planning departments of local authority on
that. Moreover, the procedure of conversion of land should be carried out first in any land and
this application must be complied with the national land code and must be lodged with the
district land office and approved by authorities to know their requirements prior to submission.

For the fifth stage, this application should be submitted to the local authority concerned
and referred to the departments of fire and rescue services, water supply corporation,
departments of sewerage services, Tenaga Nasional Berhad (TNB) and other related
departments. For the building plan approval, the officer from building departments will
undertake the following process and get comments from technical departments and coordinate
comments with the agreed layout plans. After that, all the comments from the other technical
departments and other agencies involved for development receive. Then, they will prepare a
decision paper for the development. After the meeting, they approved the development
including the low cost of requirement.

Besides, after all the decisions have been approved, the developer should apply for
the developer licenses. This license is very important because to ensure that the flow of the
process will run smoothly and follow the schedule to keep interest for buyers. Developers that
develop more than 4 units of houses should have developer license and sales and

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advertisements permit. So, the developer can make advertisements and sales for the
development if the development is not complete yet. This process showed that the developer
used process sell then build for the development.

Lastly, issuance of certificate of completion for the development. If the development

has got the Certificate of Completion and Compliance (CCC), the building is ready to stay and
use for the public. This is because the building has been checked and inspected by experts
and the CCC will be given to the developer for the building that has completed.

5.7.4 Highest and Best Use

The highest and best use is the reasonably probable and legal use of vacant land or
improvements that is physically possible, appropriately supported, financially feasible and that
results in the highest value. There are four criteria of highest and best use must meet, which
is legal permissibility, physical possibility, financial feasibility and maximum productivity of the
development. For the legal permissibility where the development should have approval
according to the planning standard that has been approved by the local planning authorities.
The physical possibility where any use of land has been fully utilized for the size, shape,
topography and the characteristic of the site. The means of highest and best use for financial
feasibility where the development adequate enough revenue in order to justify a cost. Then,
for the maximum of productivity the potential use can generate the highest return to the
developer.

5.7.5 Conclusion of Site Description

In conclusion, our proposed site which is Lot 115103 is suitable to make a mixed
development due to its strategic location. This is because there is good accessibility through
several highways that are stated in the description of location. In addition, due to various
facilities and amenities in the surrounding area, it gives attractions for potential buyers to buy
our proposed developments.

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6.0 SOCIO-ECONOMIC ANALYSIS

Social economics is a type of economics and a social science that looks at how
people's actions affect the economy. The main goal of social economics is to figure out how
different social processes and economic activities in a community affect each other. Social
economics might try to explain how a certain social group or socioeconomic class acts in a
society, such as how they act as consumers. If that's the case, this would be a try at social
economics. In this section, we will pay more attention to information about Selangor's
socioeconomic.

6.1 Selangor Data Population

The total land area of Selangor is 7,950.9 km2, which is a home to the population of
6.56 million people. This particular state has an average population density of 880 people per
square kilometre. The proportion of males to females in the population of Selangor fell from
113 to 112 between the years 2020 and 2021, with the ratio standing at 113 males to every
100 females in 2020 and 112 males to every 100 females in 2021. There are approximately
563,988 people who are not citizens out of Selangor's total population of 6,430,435. Citizens
make up 91.9% of the state's population. The state of Selangor is the most populous, and
even in 2021, it will continue to rank among the states with the highest population.

Figure 6.1.1: Table Show Data Population of Selangor

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 Source: Department of Statistic Malaysia

The Bumiputera, the Chinese, and the Indians make up the majority of the population
in the state of Selangor. There are 3.89 million people living in the state of Selangor, and
60.6% of them are considered to be Bumiputera. The number of individuals who identify as
Chinese is 27.3% of the total population, which comes to 1.76 million, while the number of
people who identify as Indian is 11.3% of the total population, which comes to 0.73 million.
The remainder account for 0.8% of the total population, or approximately 0.52 million people.

The age distribution of the population can be broken down into three primary groups
to those who are young, those who are of working age, and those who are of retirement age.
The percentage of people who are young will decrease to 21.8 percent in 2021 (it will be 22.2%
in 2020), while the percentage of people who are working age will increase to 71.0 percent (it
will be 70.9% in 2020), and the percentage of people who are old will increase to 7.2 percent
(it will be 6.8% in 2020).

According to the data presented in table 8.1, there were approximately 2,298,130
people residing in the district of Petaling as of July 7, 2020. The Department of Statistics in
Malaysia is where we obtained this information. Beginning in 2010, we are able to see that the
total of 1,765,495 is increasing.

Figure 6.1.2: Chart Shows the Population Every District in Selangor

Source: Report on Socioeconomic in Selangor

6.2 Selangor Employment Data

In the year 2021, the employment rate in Selangor climbed by 2.1 percent, which was
an increase over the previous year's rate of 0.3 percent. In comparison to the 3,602.7 thousand
people who were counted in the labor force in 2020, the year 2021 registered 3,676.9 thousand

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workers. During the same time period, the number of individuals who were employed rose
from 3,446.5 thousand in 2020 to 3,518.5 thousand in 2021.

Figure 6.2.1: Chart Shows the Data About Employment in Selangor.

Source: Department of Statistic Malaysia

With a contribution ratio of 26.9 percent in 2021, the population working in the category
of service and sales workers is the largest portion of the working population in Selangor. After
this comes the category of technicians, followed by associate professionals and professionals,
each of which contribute 15.6% and 13.3% respectively to the total. Whereas the category of
skilled workers encompasses the categories of managers, professionals, technicians and
associated professionals and accounts for 35.4% of all employees, this category covers 35.4%
of all employees in Selangor.

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 Figure 6.2.2: Figure Shows the Data About Employment Category in Selangor

Source: Report on Socioeconomic in Selangor

A total of 2,501.1 thousand workers (71.1%) are concentrated in the sector services in
2021 and followed by sector manufacturing which includes 574.3 thousand people (16.3%),
construction (240.2 thousand; 6.8%), agriculture (187.9 thousand; 5.3%) while the mining and
quarrying sector recorded the lowest number of employees which is 15.0 thousand people
(0.4%).

6.3 Selangor Household Income Data

The department of statistics in Malaysia revealed that the average monthly household
income in Selangor in 2016 was RM 9,463, placing it in third place among the richest in the
country. Kuala Lumpur has the highest average monthly household income in the country,
recording an average of RM 11,692 per month, followed by the Federal Territory of Putrajaya,
which has an average of RM 11,555 per month. The average monthly household income in
the other states was lower than the figure given for the nation as a whole (RM 6,958).

All states have seen an increase in their income levels, with five of those states
recording a gain in their average monthly household income at a pace that is higher than the

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national average of 6.2 percent. Terengganu had the greatest growth rate, coming in at 9.1
percent, followed by Perak at 8.6 percent, Pahang at 7.2 percent, Selangor at 6.8 percent,
and Kelantan at 6.3 percent.

Figure 6.3.1: Table Shows Average Income in District Level at Malaysia

Source: Journal of Selangor

Income of households on the level of the district administration among the 140 district
administrations in Malaysia in 2016, the districts of Sepang (RM 8,174), Petaling (RM 7,904),
Gombak (RM 7,903), Hulu Langat (RM 7,851), Klang (RM 6,724), and Johor Bahru (RM 6,518)
reported the highest median household monthly income. Since 2014, the average monthly
household income in the top six districts has continued to trend in the same direction as
mentioned in the previous paragraph. There were seventeen districts that reported a median
household income that was higher than the national median rate of RM 5,228, and there were
eleven districts that reported an average household income that was more than the national
average of RM 6,958.

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6.4 Comparable Properties
6.4.1 Double Storey Terrace House

Types of unit Double storey terrace Double storey terrace

Location Jalan PJS, Bandar Sunway, Petaling Jalan PJS 10, Bandar
Jaya. Sunway, Petaling Jaya.
Distance (km) 13km from subject property. 10km from subject
from subject property.
property
Tenure Leasehold Freehold
Built-up area 1440 sqft 1200 sqft
(sqft)
Area (sqft) 1080 sqft 1080 sqft
Price (RM) RM 600,000 RM 620,000
Intermediate lot Intermediate lot

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6.4.2 Single Storey Terrace

Types of unit Single storey terrace Single storey terrace

Location Sea Park, 46300 Petaling Jaya, Jalan 51a/235, Seksyen 51a,
Selangor. 46100 Petaling Jaya,
Selangor.
Distance (km) 3.5km from subject property. 0.85km from subject property.
from subject
property
Tenure Freehold Leasehold
Built-up area 1650 sqft 1600 sqft
Price (RM) RM 730,000 RM 650,000
Intermediate lot Intermediate lot

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6.4.3 Shop Lot

Types of unit 2 storey shop lot 2 storey shop lot

Location Facing road 2 storey shop, Jalan Yong Petaling Jaya Old Town,
Shook Lin, 46000 Petaling Jaya, 46000 Petaling Jaya,
Selangor. Selangor.
Distance (km) 5.0km from subject property. 4.9km from subject property.
from subject
property
Built-up area 3750 sqft 2000 sqft
Area (sqft) 3500 sqft 1800 sqft
Price (RM) RM 2,900,000 RM 2,800,000
Leasehold Leasehold
Intermediate lot Intermediate lot

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7.0 PROPERTY MARKET ANALYSIS

A study of the condition and trend in the current market, a property market analysis
helps one gain a better understanding of the market dynamics that relate to the subject
property. It does this by giving a more accurate picture of the possible outcomes, with the goal
of reducing loss to the greatest extent that is practically possible. Before selecting whether or
not to pursue a planned real estate development in a certain place, they need to first determine
whether or not it will be profitable and viable to do so. Because there are not as many
unexpected occurrences on the stock market, analysis cannot be done on a daily, weekly, or
even monthly basis. It is generally agreed that three to four times per year is the optimal
frequency for this practice.

7.1 Selangor Economy

Selangor is a big part of the economy of Malaysia. In 2021, Selangor gave up to 24.8
percent of Malaysia's total Gross Domestic Product (GDP). Selangor has 21.6 percent of
Malaysia's population, or 6,994.4 million people out of a total population of 32,447.3 million
(Malaysia population and housing census, 2020). In 2021, Selangor's GDP was worth RM
343.5 billion, and growth was up 5% from 2020, when it was reduced to 5.25%. The service
sector is the most important part of Selangor's economy, making up 59.5 percent. The
manufacturing sector comes in second, making up 31.4 percent. The utilities, transportation
and storage, and information and communication sub sectors each grew by 4.2%, which
helped the services sector grow by 2.2% (it will shrink by 6.6% by 2020). The sub sectors of
finance and insurance, retail and wholesale trade, and food and beverages all grew, which
helped this sector grow as well. The manufacturing sector grew by 13.1% (-0.7% in 2020),
which was helped by growth of 23.6% in products made from oil, chemicals, rubber, and
plastic, and of 22% in electrical, electronic, and optical products. But the production of cars
and transportation equipment still went down by 0.9%, which is the same trend that has been
going on since the covid-19 pandemic began in 2020 which is by -1.6 percent.

Table 7.1: Table Show the Selangor’s Economy by Sector

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 Source: Report on Socioeconomic in Selangor

The performance of Selangor improved in 2021, when it jumped to 5.0 percent

compared to a contraction of 5.2 percent in the previous year. Despite this, Selangor continued
to be the state that contributed the most to the economy of Malaysia. The wholesale and retail
trade sub sectors, finance and insurance, transport and storage, and information and
communication all contributed to the growth of the service sector, which was 2.2 percent
(2020: -6.6 percent). The manufacturing sector improved to 13.1 percent (2020: -0.7 percent),
spurred by the surge in production of electrical, electronic, and optical items in addition to
increases in production of petroleum, chemical, rubber, and plastic products.

Positive growth from the sub sectors crops, livestock, and fisheries have been boosting
the rise of the agriculture sector, which has experienced greater growth at the rate of 4.9
percent (2020: 0.3 percent). Despite this, the construction industry experienced a decrease of
up to 6.6 percent (predicted for 2020: -9.7 percent), which was caused by a slump in the
engineering sub sector of public and building construction.

7.2 Selangor Property Market

In 2021, the real estate sub sector in Selangor saw a decline of 18.5 percent (in 2020:
-25.5%), resulting in an additional value of RM 4.1 billion. This contraction is influenced by
activity in real estate for self-owned property or lease, in particular in the purchase, sales,
rental & handling residential real estate and development for projects built for their own
operations, such as for rent of space in the building dominating 63.3 percent of the entire real
estate sub sector in Selangor. Specifically, this contraction is influenced by the purchase,
sales, rental & handling residential real estate.

After the implementation of Covid-19, the performance of real estate in Selangor has
continued to be problematic due to pre-existing problems, such as the dumping of unsold

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ready-made homes and the provision of office space and complexes with higher levels of
shops than are required. As a result of the impact of the covid-19 pandemic, buyers are still
constrained by issues about their ability and inability to get financing, employment guarantees,
and economic stability.

In spite of this, the performance of other sub sectors, such as transport and storage
and finance and insurance respectively, is optimistic, and this has indirectly fostered growth in
the stronger real estate sub sector in Selangor.

7.3 Transaction of Property in Selangor

7.3.1 Number of Transaction (unit)

Table 7.3.1: Number of Transaction (unit)

Sector Q3 2021 Q2 2022 Q3 2022

Residential 9,671 13,743 15,515
Commercial 1,201 2,055 2,285
Industrial 410 655 801
Agricultural 444 1,003 1,158
Development land 344 595 1,144
Total 12,070 18,051 20,903
Source: NAPIC

Figure 7.3.1: Number of Transaction (unit)

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 Number of transaction (Unit)
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Residential Commercial Industrial Agricultural Development
land
Q3 2021 Q2 2022 Q3 2022

Source: NAPIC

7.3.2 Value of Transaction (RM)

Table 7.3.2: Table Shows the Value of Transaction (RM)

Sector Q3 2021 Q2 2022 Q3 2022

Residential 5,608.56 7,597.41 8,340.88
Commercial 1,372.28 2,219.05 2,441.94
Industrial 2,437.91 2,658.24 2,408.05
Agricultural 261.63 355.72 685.63
Development land 528.60 811.20 1,237.72
Total 10,208.98 13,641.62 15,114.22
Source: NAPIC

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 Figure 7.3.2: Chart Shows the Value of Transaction (RM)

Value of Transaction (RM)

9,000.00
8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
Residential Commercial Industrial Agricultural Development
land
Q3 2021 Q2 2022 Q3 2022

Source: NAPIC

According to the information presented, quarter three of the year 2022 would have the
largest number of residential property transactions in Selangor, with 15,515 units selling for a
combined total of RM 8,340.88 million. In addition, during the second quarter of 2022, the
number of residential unit sales increased by 4,072, bringing the total to 13,743 units with a
value of RM 7,597.41.

According to the information presented up top, the third quarter of 2022 will have the
highest number of commercial real estate unit transactions in Selangor, with a total of RM
2,441.94 million and 2,285 individual transactions. In the meantime, the number of units sold
in the second quarter of 2022 increased by 894 compared to the number of units sold in the
third quarter of 2022, which was 2,055 and had a value of RM 2,219.05.

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 7.3.3 Number of Property Transacted (unit) in Petaling Jaya
Table 7.3.3: Table Shows the Number of Property Transacted (unit) in Petaling Jaya

Sector Q3 2021 Q2 2022 Q3 2022

Residential 2,522 3,852 4,003
Commercial 528 916 1,072
Industrial 107 182 150
Agricultural 0 0 0
Development land 22 37 36
Total 3,179 4,987 5,261
Source: NAPIC

Figure 7.3.3: Chart Shows the Number of Property Transacted (unit) in Petaling Jaya

Number of propety transacted (unit) in Petaling

4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Residential Commercial Industrial Agricultural Development
land
Q3 2021 Q2 2022 Q3 2022

Source: NAPIC

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 7.3.4 Value of Transaction (RM) in Petaling Jaya
Table 7.3.4: Table Shows the Value of Transaction (RM) in Petaling Jaya

Sector Q3 2021 Q2 2022 Q3 2022

Residential 1,828.90 2,594.85 2,753.57
Commercial 716.05 1,208.65 1,212.16
Industrial 623.08 634.12 664.45
Agricultural 0.00 0.00 0.00
Development land 23.08 36.18 30.36
Total 3,191.11 4,473.80 4,660.54
Source: NAPIC

Figure 7.3.4: Chart Shows the Value of Transaction (RM) in Petaling Jaya

Value of transaction (RM) in Petaling

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00
Residential Commercial Industrial Agricultural Development
land
Q3 2021 Q2 2022 Q3 2022

Source: NAPIC

According to the information presented above, the number of residential unit properties
that were sold in Petaling Jaya reached its greatest point during the third quarter of 2022,
when 4,003 units were sold for a combined total of RM 2,753.57 million. In the second quarter
of 2022, the number of residential property transactions will amount to 3,852 units, and the
total value of the property that will be transferred during that year would amount to RM
2,594.85 million. Quarter 3 2021 will have the fewest number of residential unit properties
available, with a total of 1,828.90 units, each of which will have a value of RM 1,828.90 million.

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 According to the information shown up top, the quarter that has the highest total value
for the 1,072 pieces of commercial unit property in Petaling Jaya will be Q3 2022. This quarter
will have a total value of RM 1,212,16 million. The second-highest quarter for commercial real
estate is the second quarter of 2022, and it has 916 units of property that are valued at a total
of RM 1,208.65 million.

7.4 Market Supply Analysis

Supply is a fundamental economic phrase that refers to the complete amount of a

particular commodity or service that is made available to the consumer. In general, supply can
be known as a basic economic term. The supply of something could be determined by how
much of it is accessible at a particular price or by how much of it can be had at a range of
different prices, as shown in a graph. This is strongly tied to the demand for a product or
service, which is the same regardless of the industry, but production will grow when costs rise
because all businesses are attempting to make the most profit possible.

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 7.4.1 Existing Supply in Petaling Jaya
Table 7.4.1: Table Shows the Data of Existing Supply in Petaling Jaya
Type Q1 2022
Single storey terrace 28,731
2 - 3 storey terrace 163,828
Single storey semi-detached 1,031
2 - 3 storey semi-detached 15,664
Detach 19,776
Town house 4,393
Cluster 2,686
Low-cost house 15,255
Low cost flat 64,609
Flat 40,914
Condominium/ apartment 176,929
Total 533,816
Source: NAPIC

Figure 7.4.1: Table Shows the Data of Existing Supply in Petaling Jaya

Q1 2022
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0

Source: NAPIC

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7.4.2 Completion Supply in Petaling Jaya
Table 7.4.2: Table Shows the Data of Completion Supply in Petaling Jaya

Type Q1 2022
Single storey terrace 0
2 - 3 storey terrace 0
Single storey semi-detached 0
2 - 3 storey semi-detached 0
Detach 0
Town house 0
Cluster 0
Low-cost house 0
Low cost flat 0
Flat 0
Condominium/ apartment 0
Total 0
Source: NAPIC

Figure 7.4.2: Chart Shows the Data of Completion Supply in Petaling Jaya

Q1 2022
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Source: NAPIC

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 7.4.3 Incoming Supply in Petaling Jaya
Table 7.4.3: Table Show the Data of Incoming Supply in Petaling Jaya

Type Q1 2022
Single storey terrace 0
2 - 3 storey terrace 5,173
Single storey semi-detached 0
2 - 3 storey semi-detached 916
Detach 175
Town house 587
Cluster 100
Low-cost house 243
Low cost flat 0
Flat 0
Condominium/ apartment 8,543
Total 15,737
Source: NAPIC

Figure 7.4.3: Chart Shows the Data of Incoming Supply in Petaling Jaya

Q1 2022
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Source: NAPIC

37 | P a g e
7.4.4 Start Supply in Petaling Jaya
Table 7.4.4: Table Shows the Data of Start Supply in Petaling Jaya

Type Q1 2022
Single storey terrace 0
2 - 3 storey terrace 0
Single storey semi-detached 0
2 - 3 storey semi-detached 0
Detach 0
Town house 0
Cluster 0
Low-cost house 0
Low cost flat 0
Flat 0
Condominium/apartment 0
Total 0
Source: NAPIC

Figure 7.4.4: Chart Shows the Data of Start Supply in Petaling Jaya

Q1 2022
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Source: NAPIC

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 7.4.5 Planned Supply in Petaling Jaya
Table 7.4.5: Table Shows the Data of Planned Supply in Petaling Jaya

Type Q1 2022
Single storey terrace 0
2 - 3 storey terrace 141
Single storey semi-detached 0
2 - 3 storey semi-detached 0
Detach 0
Town house 0
Cluster 0
Low-cost house 0
Low cost flat 0
Flat 0
Condominium/ apartment 1,670
Total 1,811
Source: NAPIC

Figure 7.4.5: Chart Shows the Data of Planned Supply in Petaling Jaya

Q1 2022
1800
1600
1400
1200
1000
800
600
400
200
0

Source: NAPIC

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7.4.6 New Planned Supply in Petaling Jaya
Table 7.4.6: Table Shows the Data of New Planned Supply in Petaling Jaya

Type Q1 2022
Single storey terrace 0
2 - 3 storey terrace 0
Single storey semi-detached 0
2 - 3 storey semi-detached 0
Detach 0
Town house 0
Cluster 0
Low-cost house 0
Low cost flat 0
Flat 0
Condominium/ apartment 0
Total 0
Source: NAPIC

Figure 7.4.6: Chart Shows the Data of New Planned Supply in Petaling Jaya

Q1 2022
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Source: NAPIC

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7.5 Market Demand Analysis

The term "demand" can be defined as an economic notion that describes a consumer's
desire to purchase products and services, as well as the consumer's willingness to pay for
those goods and services. If all other variables were held constant, it would reduce the quantity
of a product or service that was demanded, which would have the effect of driving up its price.
The aggregate demand for a specific good or service in a market is referred to as the market
demand for that good or service. The sum of all the different types of demand in an economy
is referred to as aggregate demand thus, the multiple storage solutions are frequently required
to keep up with the level of demand.

7.5.1 Factors Affecting Demand on Commercial in Petaling Jaya

A study of the demand that exists in a given region's property market is referred
to as a "demand analysis". The demand analysis of commercial property in Petaling
Jaya, Selangor is affected by several different elements, each of which contributes in
its unique way to the overall demand of the property market in Petaling, Selangor.

1. Population
Figure 7.5.1.1: Chart Shows the Data of Population in Selangor

Selangor population
2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
Gombak Klang Kuala Kuala Petaling Sabak Sepang Ulu Ulu
langat Selangor Bernam langat Selangor

Source: Jabatan Perangkaan Malaysia

According to the figure that can be found above, Petaling Jaya district has the
highest recorded population in the state of Selangor among the other districts, with a

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total of 2,298,130 people in 2020 according to the Department of Statistics Malaysia
for the result of the 2020 census.

2. Income
Figure 7.5.1.2: Chart Shows the Data of Income in Selangor

Source: Jabatan Perangkaan Malaysia

According to the data presented in the graph that is located above, the Petaling
Jaya district in Selangor has the highest income level of all of the other districts in
the state. A monthly salary of RM 8,993 is considered to be the norm for residents
of the Petaling Jaya district. Due to the high average level of income, the residents
of Petaling Jaya district are now in a position to purchase the homes and
businesses they have always dreamed of owning in Petaling Jaya district. Due to
their greater affordability and purchasing power, people with higher incomes tend
to purchase residences that are of a higher quality and a higher standard to
improve the overall quality of life in the area. Overall, there will be a rise in demand
for properties in the Petaling Jaya district.

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7.6 Demand Analysis for Residential Property

Table 7.6: Table Shows the Data of Demand Analysis for Residential Property in Petaling
Jaya

Type Q3 2022
Single storey terrace 210
2 - 3 storey terrace 1,300
Single storey semi-detached 10
2 - 3 storey semi-detached 164
Detach 225
Town house 45
Cluster 15
Low-cost house 70
Low cost flat 443
Flat 266
Condominium/ apartment 1,104
Total 4,003
Source: NAPIC

Figure 7.6: Chart Shows the Data of Demand Analysis for Residential Property in Petaling
Jaya

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 Q3 2022
1400

1200

1000

800

600

400

200

Source: NAPIC

According to the table that is located above, the number of residential property
transactions in the Petaling Jaya district are broken down as follows: as can be seen, the
residential property transaction consists of 2- to 3-storey terraces with 1,300 units, followed
by condominiums and apartments, each of which has 1,104 units. Single-story semi-detached
properties with only 10 units constitute the least expensive type of commercial real estate
transaction.

7.7 Demand Analysis for Commercial Property

Table 7.7: Table Shows the Data of Demand Analysis for Commercial Property in Petaling
Jaya

Type Q3 2022
Pre-war shop 0
1 - 1 1/2 storey shop 25
2 - 2 1/2 storey shop 91
3 - 3 1/2 storey shop 76
4 - 4 1/2 storey shop 21
5 - 5 1/2 storey shop 3
6 - 6 1/2 storey shop 0
Shop unit/retail lot 81

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 Office lot 179
Soho/sofo/sovo 74
Shopping complex 0
Purpose-built office 2
Service apartment 462
Hotel/leisure 1
Total 1,072
Source: NAPIC

Figure 7.7: Chart Shows the Data of Demand Analysis for Commercial Property in Petaling
Jaya

Q3 2022
200
180
160
140
120
100
80
60
40
20
0

Source: NAPIC

The data presented in the table that follows provides a breakdown of the total number
of commercial property transactions in Petaling Jaya district. As can be seen, the service
apartment property type has the highest number of transactions for commercial property, with
462 units. The pre-war shop, the 6-to-6-and-a-half-storey shop, and the shopping complex
with the same number of units each had a transaction value of zero. This was the lowest
commercial property transaction possible.

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8.0 PROPOSED DEVELOPMENT
8. 1 Introduction of Proposed Development

The proposed development for our case study is Lot PT250 (previously lot 13),
Seksyen 32, Bandar Petaling Jaya, Daerah Petaling, Selangor. The proposed development is
to build a mixed development on the land that consists of the commercial and residential
sector. The residential development, there are two types of commercial that we recommend
which double storey shop lot. While for the development of residential, we recommend double
storey terrace houses. The concept of our proposed development is Smart City Concept
because of the surrounding development that are mostly outdated and typical concepts. That
is the reason why we need to propose this concept to attract potential buyers and investors.
The estimated period for the development is around 3 years and the total land area for this
development is 10.3 acres (448,973 sqft). For the plot ratio and plinth area of the proposed
development, we decided to use 60% of the whole land for the development of the commercial
and residential area. The remaining 40% is for the facilities and open spaces.

Total land area 10.3 acres / 448,973 sqft

Development area: 60% of 448,973 sqft 269383.8 sqft
Facilities and open spaces: 40% of 448,973 179589.2 sqft
sqft

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8.2 Layout Plan

Land use Unit Sqft

Residential
Double storey teracced 48 unit 1800 sqft
house 60 unit 1200 sqft
Single storey terraced 6 unit 1280 sqft
house
Double storey shop lot
Subtotal 114 unit 4280 sqft
Public facilities
Recreational park 1 unit 2227 sqft

Utility
Sewerage system 1 unit 2500 sqft

8.3 Concept of Proposed Development

Smart city concept is the name of our proposed development. This concept focuses
on the utilization of advanced technology and also Information and Communication
Technology (ICT) to address urban issues such as improving quality of life, promoting
economic growth, developing a safe and environmentally friendly environment, and
encouraging efficient urban management practice. The concept of Smart City can be assumed
as the most recent trend in development as a result of technological advancements in our daily

47 | P a g e
lives. These are the smart city concept characteristics that we used in our proposed
development.

a) Smart Home
Each residential unit will be outfitted with a smart home system, which will include
sensors for electrical appliances, a solar panel, great phone coverage, wi-fi, a robot
vacuum and a smart or android television. A smart lock door system with access card
will also be included. The smart home will allow residents to observe their homes,
control the air conditioning and all electrical appliances wirelessly using a smartphone
even though they are not at home.

Figure 1: Smart Home

b) Smart Waste Management System

Waste management is so important in residential units in order to control the smell
pollution and to create inner peace in the neighborhood. In order to have that, the
sensors will be installed in all garbage cans in residential and commercial areas. The
sensors will instantly send alerts when the bins are full, allowing trucks to optimize their
routes to avoid trips for empty bins and raise the collection system's efficiency. Aside
from that, the garbage trucks will be outfitted with a Global Positioning System (GPS)
to allow residents to track their location.

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 Figure 2: Smart Waste Management

c) Street and Lighting Compound

A good street lighting is necessary in residential areas to increase the safety of the
people, especially kids and increase visibility for drivers and pedestrians. All common
area lighting, including street lights on public roads, is equipped with sensors rather
than a timer system. Depending on the current situation or weather, the sensors will
ascertain and decide when to light up. This censor system will save money for a long
period of time by enhancing the operation of street lights.

Figure 3: Street Lighting

d) Crime Prevention
To deter intruders and guarantee the residents' safe and secure environment, the
residential area will be outfitted with a smart closed-circuit television (CCTV) for safety
surveillance. A license plate recognition system (LPRS) will be installed at the guard
house to allow access to the residential area. Residents' license plate numbers are the

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 only ones who can gain access. This system will be used in place of the standard
access card.

Figure 4: CCTV

e) Road Safety
The road design for our proposed development will be based on the Cul de Sac
concept. The benefits of this concept include providing a quieter and safer environment
for children. It also increases the possibility of neighborly engagement among
residents, creates a greater sense of privacy, and can reduce the likelihood of
accidents and crimes.

Figure 5: Road Safety

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8.4 Types of Development
8.4.1 Residential development

For the proposed development, there are two types of residential house which are
Single Storey Terrace House and Double Storey Terrace House.

Single Storey Terrace House

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 Double Storey Terrace House

8.5 Other Than That We Also Proposed A Development of Double Storey Shop
Lot

Double Storey Shop Lot

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9.0 MARKETING PLAN AND STRATEGIES
A marketing strategy is a long-term way of accomplishing company's goals through
consumer perceptions and the creation of a distinct and sustainable competitive advantage. It
includes everything from determining the channels the customer chooses until proceeding to
consult with the property agent. A marketing strategy allows you to define how your company
positions itself in the global market, the types of products you create, the strategic partners
you form, and the types of promotion and advertisement you engage in.

9.1 Target Market

It can be difficult to pinpoint the target market, but it is an important debate

that every real estate agent should have with the team members before launching the
marketing strategy. Once the target market has been identified, the team must maintain
the consistency throughout the marketing to ensure a solid and collaborative marketing
strategy. The demographic of people to whom you are selling your products or services
is known as your target market. In the real estate industry, these are the people who
are most likely to be engaged in and purchase your housing units.

Every once in a while, a person in charge in the real estate industry will
encounter potential customers who do not match these demographics, but knowing
what the majority of your customers look like will make a significant difference in the
effectiveness of your marketing. There are some characteristics that can be considered
while choosing your target market such as:
● Age – The targeted people to buy and survey these lands are among land
surveyors, solicitors and new developers from other big companies who want
to open a new branch for their brand which may be in the middle-aged man
between 33 years old to 50 years old.
● Gender – Most of the housing buyers are men. The developers that manage
all these sites and industrial land are men.
● Location/geographic – Our location of the case study at access Jalan 222,
Jalan 225, Jalan 229 and Federal Highway (Kuala Lumpur-Klang). It is also
located in the Petaling Jaya commercial city.
● Household income – There are 3 specific levels of household income in
Malaysia which are B40, M40, and T20. B40 represents the bottom 40%, M40
represents the middle 40% and t20 represents the top 20% of Malaysian
household income. Since our case study type is industrial land and open for

53 | P a g e
 leasehold with 10-acre land area, the lessee might be from M40 to T20
category of level income.
● Hobbies/lifestyle – Everything matters when it comes to lifestyle, no matter if
your income achieve the T20 of level income but if you have many
commitments in your life such as gym subscription every month, phone bills,
utilities bill, car loan, personal loan , also you like to purchase branded things
and support your siblings who is still studying or not working yet will bring such
a mess if you try to purchase the house or land that is not in your net income
level.
● Career/profession – All types of profession can be a landowner but by the
specific level of income and the purpose of buying the land.
● Purchasing triggers - Since this is the industrial land in Petaling Jaya, Selangor,
it will be vacant to the serious developer or factory owner to buy.
● Consumption of media – The organization uses social media such as the official
website and twitter ads to show the detailed information about the industrial
land open for leasehold to reach the target market.

There are a few common target audiences to consider for real estate
developers who are also builders. When it comes to buying industrial land, everyone
has different priorities, and it is crucial to comprehend these priorities so you can show
them why the community is the best fit for their necessities. Once the real estate agents
know their target market, they can use it to develop an amazing marketing strategy
that translates into increased sales.

9.2 Marketing Tools

Marketing tools help a lot in promoting or letting people know about our brand
service that we provide. Marketing management needs to set up the right channel in
promoting the property in a professional way.

⮚ Website

People always use google when they need some important information as soon as
possible, because people hate waiting for an answer from the agent property as it
is time consuming. In order to help people find the easiest way to find us, we need
to create an official website that shows a new promotion, new sales, updated

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 discount and the house that is still available so people can make their decisions
until they consult with us to proceed to the next process.

⮚ Social media

Ensuring the social media that we use has its own identity and to keep it
professional, we need to appoint a great administrator in handling the account, so
they can post whatever they want about the property but must follow the real
purpose and guideline to get the approval from the marketing manager.

⮚ Google ads

The fastest ways to boost sales without thinking about the content and the followers
are by creating video for google ads, considering that google boasts almost 70%
of the world’s online searches. Google ads is a popular paid marketing platform for
construction firms. Google ads is a pay-per-click service that allows you to target
highly specialized search terms, which are then used to position your ad in front of
potential customers who are already interested in your type of business. Google
ads are highly customizable and will produce results faster than Search Engine
Optimization (SEO) because your ad will appear in search engines as soon as it is
placed.

9.3 SWOT Analysis

SWOT is an acronym for strength, weaknesses, opportunities and threads.

Internal company strengths and weaknesses are things over which you still can control
and change. The example of strength in this case study are the strategic location within
the vicinity of Avon Building and Cycle & Carriage along the Federal Highway. The
other one is this subject property near to the public transportation facilities and have
speedy direct links with the Federal Highway whereby one will be able to easily access
all other parts of Petaling Jaya and Kuala Lumpur including Subang and Klang. Buses
which run along the main thoroughfares of this modern suburb allow mobility for the
residents who do not own their own mode of transport.

While weaknesses in this subject property is it is north eastern corner over at

the junction of Jalan Templer and Jalan Selangor is given over to Assunta Hospital
and 2 schools which is great but there will traffic congestion during peak hours where

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the parents need to send their children to school and clash with the people or
ambulance that going to the hospital.

Thus, opportunities and threats are external things that are going on outside
the company which means in the massive market. The property can achieve sustained
competitive advantage and defend threats, but they cannot really change them. The
examples for opportunities is the land is located adjoining a township that is well
planned with a variety of industrial companies in the planning, transportation hub,
mosque and nearby residential area. This will be a great opportunity for this area to
attract people to invest in this land because of the amenities that are well maintained.
Some examples of threat to the properties is Section 32 is a commercial area in
Petaling Jaya district which can be competition from other investment types which can
overshadow the main planning of the land.

SWOT analysis is used to make better decisions whether major or minor, it can
assist the organizations in determining the effectiveness of something as simple as
introducing a brand-new item or service or as complex as a merger. Again, SWOT
analysis is a technique that once initiated can boost the performance.

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10.0 FINANCIAL ANALYSIS
10.1Cash Flow Method
10.1.1 Gross Development Value (Residual Method)
The Gross Development Value (GDV) for the proposed site is RM 92,256,000.00. The
calculation refers to Excel.
10.2 Total Development Cost (Residual Method)
The Total Development Cost (TDC) for the proposed site is RM 56,742,200.90. The
calculation refers to Excel.
10.3 Period By Period (PBP)
The developer profit in period by period method gained RM 23,514,516.29. The calculation
refers to Excel.
10.4 Net Present Value (NPV)
1. Analysis of the viability of the proposed project
2. Profit as % of GDV 3. 31.81%
4. Profit as % of TDC 5. 52%

In the Net Present value, the total for the proposed development is RM 23,796,579.40.

10.5 Internal Rate of Return (IRR)

The internal rate of return consists of 2 Net Present Value (NPV) which is NPV R1 and
NPV R2. NPV R1 is RM 4,167,123 by using a discount factor of 10% and NPV R2 is (RM
3,020,429) by using a discount factor at 11%.

Figure 10.5 Internal Rate of Return (IRR)

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 2. Advice and Recommendations
First suggestions and advice for the investor based on the aforementioned site analysis,
demographic analysis, market study, and financial viability. Every suggestion and
recommendation will have a specific analysis based on our judgment, related research, and
other factors. provisions in the law and industry expertise. First and foremost, land conversion
must take place before the mixed-use residential construction because the subject
development site is within the industrial classification. Its goal is to make sure that none of the
express conditions stated in the property title are broken by the development. The National
Land Code forbids any violations, and if they are not remedied, the land may be taken away.

Second, as the highest and best use of the subject land, the investor should consider
and proceed with the proposed development. Given the demographic and market situation at
Petaling, a mixed residential and commercial development with an eco-friendly and business-
driven concept was discovered to be the most appropriate development. It will appeal to
specific buyers such as investors, Petaling residents, retirees, and scholars. Aside from that,
the proposed development complied with all of the planning standard's requirements. A
development that adheres to planning standards will protect you as an investor from loss due
to project cancellation by local authorities. As a result, the investor should move forward with
the planned development, which we thoroughly prepared in this feasibility report.

Last but not least, the proposed development, which is a mix of residential and
commercial property, is practical and advantageous to the investor while facing minimal risk.
Data for sensitive variables, in our professional opinion, should be handled with extreme
caution. If the investor followed and considered all cost items in the computation, the same
results would be obtained. Investors, on the other hand, must stay up to date on changes in
government policy and activities. A significant change in the overnight policy rate, inflation
rate, bank interest rate, and taxation scheme can have a significant impact on the income
forecast and profitability index findings. Overall, this feasibility study serves as the final guide
for investors to use with caution in the future.

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11.0 HIGHEST AND BEST USE

The highest and best use is the reasonably probable and legal use of vacant land or
improvements that is physically possible, appropriately supported, financially feasible and that
results in the highest value. There are four criteria of highest and best use that must meet
which is legal permissibility, physical possibility, financial feasibility and maximum productivity
of the development. For the legal permissibility where the development should have approval
according to the planning standard that has been approved by the local planning authorities.
The physical possibility where any use of land has been fully utilized for the size, shape,
topography and the characteristic of the site. The means of highest and best use for financial
feasibility where the development adequate enough revenue in order to justify a cost. Then,
for the maximum of productivity the potential use can generate the highest return to the
developer.

12.0 CONCLUSIONS AND RECOMMENDATIONS

According to this analysis, the most powerful company in the industry with
roughly similar market dominance strength over the advanced competitor’s methods in a
specific way, either they really think or think frequently. Companies should develop strategies
based on their strengths and weaknesses also enhance their ranking in the most essential
areas in the real estate industry, the type of which, contrary to popular belief, gives the greatest
company in this industry equivalent strength in market share to rival economic structures in a
way that is certain, very despite appearances, obviously shows more explicitly how to achieve
great results, joint ventures must use these analysis wisely and cautiously.

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13.0 REFERENCES

1. National Land Code Book 1965

2. Jabatan Perangkaan Malaysia

3. Wackowski, K., Tien, N. H., Dao, M. T. H., & Minh, D. T. (2022). Business Strategy of

Vietnamese Real Estate Developers: The Use of CPM Matrix for Analysis. International

Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 205-209.

4. Gomer, J., & Hille, J. (2015). SWOT ANALYSIS. Lecturer at The University of

California.

5. Hamidi Bin Jamari, Negotiator (REN No. 02346) IPC Realty Sdn Bhd.

6. Garis Panduan Kemudahan Pembetungan, JPBD Semenanjung Malaysia, 1/99

7. National Property Information Centre (NAPIC)

8. Valuation and Property Management Department (JPPH)

9. Department of Statistic Malaysia (DOSM)

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14.0 APPENDICES
COMPARISON METHOD 1

COMPARISON METHOD 2

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COMPARISON METHOD 3

RESIDUAL METHOD 1

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RESIDUAL METHOD 2

RESIDUAL METHOD 3

PERIOD BY PERIOD 1

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PERIOD BY PERIOD 2

PERIOD BY PERIOD 3

PERIOD BY PERIOD 4

NET PRESENT VALUE 1

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NET PRESENT VALUE 2

NET PRESENT VALUE 3

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INTERNAL RATE RETURN (IRR)

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ANALYSIS ON THE VIABILITY

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SENSITIVITY ANALYSIS 1

SENSITIVITY ANALYSIS 2

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