DEPARTMENT OF ESTATE MANAGEMENT

FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING

UNIVERSITI TEKNOLOGI MARA SHAH ALAM

COURSE CODE: RES551

COURSE NAME : DEVELOPMENT APPRAISAL
ASSIGNMENT TITLE : MARKET AND FEASIBILITIES STUDIES ON PROPOSED
DEVELOPMENT LAND

NAME OF GROUP MEMBERS MATRIC NUMBER

ANNISA SOFIEA BINTI ABDULLAH 2020477074

AZIATUL HUSNA BINTI AZMI 2020813108

FARAH SYAZWANI BINTI MOHD ZIN 2020845168

RINEAZTICA BINTI JUBRINE 2020819326

SYUKRI NAJMI BIN RAZALI 202112335

PREPARED FOR : DR WAN NORHISHAMUDDIN WAN RODI & SR KHOLIM SAHRAY

 Table of Contents

Acknowledgement
Executive Summary

1.0. INTRODUCTION
1.1. Company Background
1.2. Company Particular
1.3. Vision & Mission
1.4. Organizational Chart
1.5. Term of Reference
1.6. Date of Inspection (Date of valuation)
1.7. The Goals and Objective
1.7.1. Goals
1.7.2. Objective
1.8. Scope of work
2.0. Methodology of Study
2.1.1. Primary
2.2.2. Secondary

2.0. SITE ANALYSIS

2.1. Description of Site
2.2. Description of the Particular Title
2.3. Site Provision
2.3.1. The Site
2.4. Zoning
2.4.1. Development Planning
2.4.2. Conversion of Land Use
2.4.3. Application to Change Land Condition
2.5. Key Plan, Location Plan and Site Plan
2.5.1. Key Plan
2.5.2. Location Plan
2.6. Site Analysis
2.6.1.Topography
2.6.2. Hydrology
2.6.3.Vegetation
2.6.4. Geology and Soil
2.6.5. Accessibility and Road Circulation

3.0. PROPERTY MARKET REPORT

3.1. Malaysia’s Economy
3.2. Overview of Property Market in Malaysia
3.3. Performance of Property Market
3.4. Selangor’s Economy
 3.5. Selangor Property Market
3.6. Property Supply Analysis
3.6.1. Completion
3.7. Demand Analysis
3.7.1.Population
3.7.2. Income Level
3.7.3. Ethnic Group
3.8. Price
3.9. Recommended Price for Residential and Commercial Property
SWOT Analysis
3.9.1. Strength
3.9.2. Weaknesses
3.9.3. Opportunity
3.9.4. Threat

4.0. COMPETITOR ANALYSIS

4.1. Competitor of Residential sector towards the subject property.
4.1.1. Summary of Terrace House Competitor
4.1.2. Summary of Double Storey Semi Detached Houses
4.2. Competitor of Commercial Sector’
4.2.1. Summary of Double Storey Shop House Competitor

5.0. PROPOSED DEVELOPMENT PLAN

5.1. Highest and Best Use
5.2. Concept of Proposed Development
5.3. Layout Plan
5.4. Types of Development
5.4.1. Residential
5.4.2. Commercial
5.4.3. Public Facilities
5.4.4. Open Space. Recreational Area and Green Area
5.4.5. Infrastructure
6.0. MARKETING STRATEGY
6.1. Target Market

7.0. FINANCIAL ANALYSIS

7.1. Project Gross Development Value
7.2. Project Total Development Cost
7.3. Analysis on the viability of the proposed project
7.4. Variable Rank (Highest to Lowest Sensitivity)

8.0. CONCLUSION

9.0. REFERENCE
Acknowledgement

In the name of Allah s.w.t Most Gracious, the Most Merciful. First of all, we would like to express
our gratitude to Allah s.w.t for giving us health and blessing to complete this assignment within
the time given. During this assignment, we gain a lot of new knowledge and also new experiences
that are valuable for us as a student. Secondly, we would like to express our deepest appreciation
to our Development Appraisal (RES551) lecturer which is Dr. Wan Norhishamuddin Wan Rodi
and Sr Kholim Sahray for giving us guidance, endless help and for giving our opinion in order for
us to finish this assignment. Thirdly, we also would like to express our greatest gratitude to the
officers in many departments for instance Pejabat Tanah dan Galian, Selangor Jabatan Ukur dan
Pemetaan, Jabatan Penilaian dan Perkhidmatan Harta (JPPH) that willing to give us a lot of useful
information and explanation about our case study in order for us to complete this assignment.
Fourthly, thanks to our group members namely Syukri Najmi, Aziatul Husna, Annisa Sofiea, Farah
Syazwani and last but not least, Rineaztica for giving a full commitment to this assignment until
we manage to finish this assignment within the time given. Last but not least, not to forget
everyone that is involved either directly or indirectly such as our family members, classmates and
friends from other courses that have helped us in various ways and give us support and sharing
opinions with each other.
Executive Summary

Land Information details

Title No. HSD 56898

Lot No. Lot 525

Mukim Dengkil

District Sepang

State Selangor

Sheet Number 110-C

Land Area 4.007 Hectare / 10 Acres

Category of Land Use Agriculture

Tenure Leasehold for the term 99 years

Lease Expiration Date 26 Mac 2095

Introduction

The main purpose for this case study is to require us to make a feasibility study report to develop
a mixed development building on the vacant land. This is a method for determining the viability,
profitability and potential challenges that may affect the development plan. It was accomplished
by analyzing and searching the demographic, risk, demand and supply, factors in the area. All of
this will influence whether the development will create a profit or loss. Also, through market study
will be conducted to determine the present situation of the real estate market. The aims are to
understand the overall development concept, plan, and ideas.

The scope of development land given by our lecturer is needed to be within the Selangor district
which is Sepang. The development that will be developed will be located at Lot. 525, PA 52788,
Mukim Dengkil, Daerah Sepang. The proposed land area is 9.901 acres. All the background and
details of the land that we have chosen need to be analyzed according to the surrounding nearby
and how it will be developed. The data will be obtained from many sources such as primary and
secondary data. Without thorough investigation, the feasibility of the development would be
endangered.

Aside from that, mixed development is described as urban development that incorporates few
functions such as residential and commercial, residential, industrial, and commercial and
industrial within the same area. The objective is to improve existing development or create a
brand-new urban development and generate stable income from different properties. It is also to
enhance the land value by maximizing the highest and best use on the land. The goal is to improve
the welfare of people in Sepang. As a result, this progress will enhance the national economy and
their standard of living.

We are in the position of a consultant and market researcher that are going to conduct an in-depth
study to advise a local development company for an industrial park development project in
Sepang. The client is planning to purchase and develop land. We have carried out the
investigation and observation to merge all the required data into a complete feasibility report.
1.1 Company Background

Lantana Development Sdn Bhd is a property development company which provides various kinds
of services for real estate in Malaysia. The services involved in property related activities from
project concept, project consultancy, project management, and property development. Lantana
Development Sdn Bhd was formed in 2020 and located in Shah Alam with a purpose in mind to
offer market feasibility studies, project and property management as well as consultancy in real
estate. From the humble beginnings of a sole proprietorship with staff of 5, Land Development
Sdn Bhd aimed to become one of a prestigious developer company in Malaysia. Registered as
property expert and adviser, our company will advise clients regarding the property market and
socioeconomic analysis, giving accurate real estate advice, and do expert localized service while
maintaining the same standard of service. We continuously stress on teamwork and the
importance of cultivating an environment that is quick to respond to market dynamics. We believe
in growth and are constantly on the lookout for new business opportunities as well as expansion
and strategic alliances in other countries to serve our clients’ needs effectively and to promote
international investment. At Land Development Sdn Bhd, we believe in building a lasting
relationship with every client we serve. Our philosophy is simple: satisfaction, excellence,
flexibility and professionalism.

1.2 Company Particular

Company Name Lantana Development Sdn Bhd

Date of Establishment 20th February 2015

Company Registration No. 987654-v

Board of valuers registration No. VE(1)0246, VE(1) 0246/1 & VE(1) 0246/2

No. of Employees 25 Persons

Office Address No. 21A, Jalan Saujana Indah 4, Sepang,

Selangor

Authorized Capital RM100,000

Paid up Capital RM50,000

 Bank Panel CIMB Bank
Wisma Prima Peninsula
No.2, Jalan Setiawangsa 11
Taman Setiawangsa
54200 Kuala Lumpur

Years in Business 7 Years

Contact Us Phone : 03 8467 5786

Fax : 03 8466 6785

Email : lantana_sepang@gmail.com

1.3 Vision of Company

Becoming the leader in consulting and property expert company in Malaysia and well-known
property oriented company throughout Malaysia and able to design and construct the residential
properties for our client and will ensure the best quality and affordable living experience possible.

Mission of Company

To provide effective evaluation of the national development in order to create a balance and
nurturing development. To achieve these objectives, Lantana Development Sdn Bhd shall :

1. Ensure client satisfaction through performing professional duties promptly.

2. Provide training for continuous improvement towards increased customer satisfaction.
3. Increase staff productivity and create trained technicians.
4. Comply with statutory standards and requirements set by relevant bodies.
5. Provide and equip all staff with appropriate and sufficient resources for effective
productivity.
1.4 Organizational Chart of Lantana Development Sdn Bhd

Director of Company

Director of Company Head of Marketing

Property Research Market Analyst

1.5 Term and Reference

This market and feasibility study is carried out for a proposed project of mixed development
consisting of terrace house, semi-detached house and shop house. Our team instructed by the
top manager of Lantana Development Sdn Bhd, Dr Wan Nurhishamuddin bin Wan Rodi to
prepare a market feasibility study for potential development on Lot No. PA 52788, Mukim Dengkil,
Sepang, 43800, Selangor. These lots are located in the area Sepang, Selangor.

1.6 Date of Inspection (Date of valuation)

The date of inspection will be the date of valuation of the market and feasibility study which is
24th November 2022. All information regarding the site has been obtained during the site
inspection for us to proceed with the feasibility and market study of the proposed development.

1.7 Goals and Objective

1.7.1. Goals
Our goal is to provide the good services and efficiency outcome for our client while if anybody
appoints us to develop a project. Lantana Development Sdn Bhd workers will ensure that the
client appointed us will be satisfied with the work we have done and give the best outcome in
every project that we developed. Our priority is to give all the commitment to all client and follow
the client’s needs in all project to give an cooperative in project given, been honest what happen
in all situation and budget, get a trust from client with all this priority we will sure that our company
will be successful and the most important we will not abandoned that project will give.

1.7.2. Objective
The objective of the market feasibility study is to propose development with the element of urban
regeneration. The market feasibility study needs to consider all the factors such as the physical
location of the site, supply and demand, guidelines, economy, social impact, environmental
impact, and other relevant requirements for property development in Selangor. The most
important thing in the market and feasibility study is the financial analysis which will determine the
profit, viability and feasibility of the purpose of development.
1.8 Scope of Works
There are several scopes of works being done in order to ensure the accuracy of the feasibility
study:-

1. To identify any potential possibilities on the development land.

2. To carry out the detailed site analysis.
3. To carry out assessment on the surrounding development, existing infrastructure,
facilities, amenities and accessibility of the location.
4. To carry out macro and micro economic studies.
5. To study the planning considerations and requirements.
6. To prepare the proposed development plan and layout.
7. To identify the target market.
8. To propose a marketing plan.
9. To conduct financial analysis and to advise the profitability and viability of the proposed
development.

1.9 Methodology
There are several methodologies of study adopted to carry out the market study and feasibility
study for the proposed project. The sources of property development study are as follow :

i) Primary Data
First, data were collected through inspections of the proposed site, to investigate the
neighborhood, surrounding area, basic facilities, access road and others. Interview held with the
relevant personnel that are related with the proposed development.

ii) Secondary Data

Reference made to the relevant authorities such as Department of Statistics, Department of
Survey and Mapping (JUPEM), Department of Town and Country Planning and Land Office.
Published official reports are also referred from the relevant authorities for example, Property
Market Report (PMR) from National Property Information Centre (NAPIC), Department of Statistic
Malaysia website and the data collected from the Town and Planning Department of Majlis
Bandaraya Sepang.
2.0 SITE ANALYSIS

2.1 Description of Site

The proposed site is located at lot 525, Mukim Dengkil, District of Sepang, State of Selangor
District of Selangor held under Leasehold Title, HSD 56898 which is 99 years old. The land that
has been chosen is 4.007 hectare which is equivalent to 10 acres. This site is located at the first
layer from the main road. Based on the inspection, the proposed site would be strategic and
potentially to be developed.

The information gathered in undergoing this project would help us to make a conclusion and
investigation relating to the proposed project which will be developed on that land. For this project,
the proposed development will be good and will not have any problems in the area to develop
mixed development. All the relevant information that we collected which may help us in preparing
this development proposal report to ensure that this study is efficient as to be used as a guideline
to undertake the proposed projects. The information is collected from some government
department to help in some analysis as needed to be provided in the proposal report for site
analysis, property market analysis, socio-economic analysis and competitive analysis. Moreover,
this development proposal report also helps to identify the project whether it is viable and be
proceeded to the next level which to undergo the development or not.

2.2 Description of the particular title

The particular title of the subject property is extracted as per search conducted at Pejabat Tanah
dan Galian Selangor on 6th December 2022. The particular of title of this land are as follows:

a) Details of land ownership

Owner: Musa @ Ayoob Bin Saad (I/C number: 440331-02-5165)

Address: No 7309 Jalan Nilam Tiga, Taman Setia Gombak Kuala Lumpur,

53100, Wilayah Persekutuan Kuala Lumpur.

2.3 Site Provision
2.3.1 Land Use
The subject property now is used as an agricultural area and potentially for future development.
It also has been proved by validation from Majlis Perbandaran Sepang (MPS) on 10 th December
2022.

2.4 Zoning
The subject property is zoned for residential areas. It was checked at the local plan at Majlis
Perbandaran Sepang on November 10, 2022. As a result, it is appropriate to perform a mix
development in that specific area. Aside from that, the high density of people in the location may
create revenue for economic activities, particularly the commercial sector. However, it is
dependent on the accessibility and adaptability of the competition.

2.4.1 Development Planning

Development planning for the proposed site stated by Pejabat Tanah Dan Galian Negeri Selangor
is for the agricultural area and we get approval to exchange the land use for mixed development.

2.4.2 Conversation of land use

Section 124 of the National Land Code 1965 provides for the application to change or impose the
category of land. Residential use is not permitted on agricultural land. As a result, such a shift in
land use category or express condition, such as from agriculture to building, is frequently referred
to as conversion land. The conversion premium will be charged. We want to convert agricultural
land to building (residential) property for the purpose of this assignment. Building land premium
is 20% of market value.
2.4.3 Application to Change Land Conditions
The subject property is agricultural land under the category of land use, according to the specific
title. Due to the mixed development project that will be implemented on the land, the land use
must be converted to residential land use. Land Use Conversion refers to the act (Section 124 (1)
(a) and (c) of the National Land Code) which landowners can apply to the State Authority to
change/impose new land use categories and real land conditions.
2.5 Key Plan, Location Plan and Site Plan
2.5.1 Key Plan
2.5.2 Location Plan

2.6 Site Analysis

Analysis of the condition of site is an important key to developing a building which must
identify the potential and constraints of each land in the study area. In fact, it also analyzes
the condition of the site for development factors such as physical, social and economic. It is
analyzed before proposing to plan development.
In addition, the analysis of the current state of the site aims to identify the appropriateness to
propose development that is lacking and progress according to the guidelines and the
potential and constraints found in the study site. Furthermore, it can also provide a design
according to the appropriateness of the analyzed factors. There are several elements that
need to be highlighted to analyze the current state of the site.

2.6.1 Topography
Based on site inspection and secondary data, roughly analyzed that the subject property has
high percentage undulating and hilly area followed by the flat area.
 Figure 2: Topography Plan

Therefore, the justification of suitable planning on site based on the table below:

Percentage on Site Justification

(%)
Hilly Suitable for developing high-cost housing
areas because it has an attractive
aesthetic view

Undulating Suitable for Semi-detached and Detached

housing types.

Flat Suitable for all types of development such

as industrial, commercial and housing. A
more suitable housing is a terraced house.

2.6.2 Hydrology
According to the inspection done, roughly there are no water bodies and only the
drainage systems were provided at the study site. Water flow occurs when rainwater flows
down from high-level areas to low-level areas and the movement of water flow is slow. So, it
does not interfere with building construction.
2.6.3 Vegetation
Based on observations in the study area, there are several types of trees, namely oil palm
trees, sapling, bushes and forests. In the lower south there are many palm trees. At the top
of the high contour line there is a thick forest and is protected by briars.

2.6.4 Geology and Soil

In the study area it has also been analyzed that there are two types of soil which are laterite
soil and peat soil. Peat soil has 70% in the study area while the rest is laterite soil. Laterite
soil is suitable for development because its structure is strong and solid. Peat land is also
suitable for development, but only a few developments.
Practically speaking, these two lands can develop buildings because the structure is able to
strengthen the development. So, the development that wants to develop can be considered
all important elements in the area.

Peat Soil Laterite Soil

2.6.5 Accessibility and Road Circulation

The accessibility of the study area is connected with the existing 50' paved road. There are
one access roads to the study area which is on the east side.
3.0 Property Market Report

A real estate market study is divided into a few fundamental categories, each of which
contains crucial data for determining the value and viability of real estate investments. The
first portion gives a description of the region under examination. Finding the boundaries of
the lot is only one aspect of defining the area; another aspect is determining the size of the
target market that will most likely result in sales. The investor is better able to define
competition and meet current demand in that area with the available supply thanks to the
precise description of the target market and the neighborhood. For a period of four years, we
examined the supply and demand of comparable production patterns.

3.1 Malaysia’s Economy

In Malaysia, recent strong economic expansion has created demand for urban housing.
Looking back on property prices in Malaysia, the cost of a home has increased dramatically
in major cities or villages, depending on the location. The Malaysian real estate market had
significant price changes more than 10 years ago. So far, housing costs have almost reached
the limit. Although the true cause of the illogical surge is yet unknown, a number of plausible
theories for rising home prices are emerging. The Malaysian real estate market has been
contracting since 2012. Even while costs are still rising, there have been slight increases over
the past five years. Prices dropped to their lowest levels since 2009 in 2017, averaging 5%.
With only 311,824 transactions in 2017, which set a record low since 2012, we are observing
a similar tendency.The table below compares the general price fluctuations in real estate from
2013 as reported by Malaysia's department of valuation and property services the previous
year.

The Malaysian economy continued the momentum of economic recovery, recording a faster
growth of 14.2% in the third quarter of 2022 (Q3 2022) compared to 8.9% in the second
quarter and 5% in the first quarter. Strong GDP growth was contributed by domestic and
foreign demand and a buoyant labor market. This development is also driven by encouraging
performance in all economic sectors led by the service and manufacturing sectors. This Q3
2022 growth is also supported by the implementation of Budget 2022 measures as well as
the spillover effect from the transition to the endemic phase which encourages more vigorous
economic and social activities. Overall, GDP increased by 9.3% in the first nine months of
2022.

FIGURE 3.0 Malaysia’s Economy continued to strengthen by 14.2 per cent

Due to a lower base in the third quarter of the previous year, Malaysia's GDP continued to
grow by 14.2% as opposed to 8.9% in the second quarter of 2022. As the nation moved closer
to endemicity and the reopening of international borders, the high growth was also seen in
the year's first quarter. Seasonally adjusted from quarter to quarter, the GDP expanded by
1.9% (Q2 2022: 3.5%). In addition, the monthly economic performance improved to 15.8% in
July, followed by August at 15.3%, and then slowed to 11.6 in September 2022. In all, the
economy expanded by 9.3% in the first three quarters of 2022 (Q3 2021: 2.9%).
3.2 Overview of Property Market in Malaysia

The fourth quarter of 2019 saw a rise in Malaysia's economic growth of 3.6%, bringing the
year's overall GDP growth to 4.3% (2018: 4.7%). Due to interruptions in the supply of
commodities, the private sector has increased its expenditure, which has fueled growth. The
Malaysian Industrial Production Indices (IPI) increased by 2.4 percent in 2019 compared to
2018. 3.6% and 3.3%, respectively, of the growth was driven by the manufacturing and
electrical sectors. In the fourth quarter of 2019, forest and logging declined by 16.9% (Q3
2019: 8.4%), - 14.15% (Q3 2019: -12.3%), mostly due to the fall in oil palms. However, there
has been a 7.6% and a 5.2% increase in the expansion of cattle and other farms, respectively.

Year 2018 Q1 18 Q2 18 Q3 18 Q4 18 2019 Q1 19 Q2 19 Q3 19 Q4 19

GDP 4.7 5.3 4.5 4.4 4.7 4.3 4.5 4.9 4.4 3.6

TABLE 3.0 Overview of Property Market in Malaysia

(Sources from Property Market Report by JPPH)

In 2019, the real estate market's performance showed just a minor improvement. There were
328,647 transactions totaling RM141.40 billion, up 0.8% in value and 4.8% in volume as
compared to 2018, which had 313,710 transactions totaling RM140.33 billion.

3.3 Performance of Property Market

Malaysia's economy grew by 4.3 % in the third quarter of 2016 (2Q 2016: 4.0 %), primarily
driven by continued growth in private sector spending and additional
support from net exports. On the supply side, the major economic sectors continued
to drive growth. On a seasonally adjusted quarterly basis, the economy
grew by 1.5 % from one quarter to the next (2Q 2016: 0.7 %). The Malaysian
economy weathered through significant headwinds in 2014 and 2015, such as the fall in
commodities prices, a dismal global trade environment, and a weakened Ringgit to emerge
relatively unscathed. Nominal GDP grew 22 times from 1980
to 2015, while nominal GDP per person grew 9.9 times in the same period. Malaysia’s
GDP per person remains higher than the average for upper- middle- income countries. In
absolute terms, this meant that average monthly household incomes grew by RM1,141, while
median household incomes grew by RM959 per month. Progress in household income, in
turn, drove a decrease in the poverty rate, which stood at 0.6% in 2014, down from 1.7 % in
2012. Services grew 6.1 % backed by wholesale & retail trade, information & communication,
and food & beverage and accommodation. Manufacturing sector
increased to 4.3 % contributed by electrical, electronic & optical products and
petroleum, chemical, rubber & plastic products. Meanwhile, the mining and
quarrying sector rebounded to 2.9 % driven by the recovery in natural gas
production. The agriculture sector posted a growth of 4.2 % following a moderation in
Oil palm and contraction in Fishing and Forestry & logging. The
construction sector grew marginally at 0.5 % contributed by Civil engineering
and Specialized construction activities. Businesses are more confident for the
second quarter of 2019, with the overall confidence indicator rising to +2.8 % from -
2.2 % in the first quarter of 2019.

3.4 Selangor’s Economy

Selangor's economy expanded 6.7% in 2019 compared to all other nations, with Kuala
Lumpur coming in second at 6%, which was 4.3% more than the country's gross domestic
product (GDP). Selangor is Malaysia's biggest gross domestic product (GDP) economy,
accounting for 23% of the country's overall GDP in 2010 with RM 128,815 billion. This is
Malaysia's most developed nation and has the best transportation and road systems.
Malaysia's GDP growth rate in 2016 was about 22.7%. Considering their quality of life and
employment prospects, Selangor residents are among Malaysia's best. The least wealthy
state in Malaysia is Selangor, which has the lowest rates of poverty. People from different
nations go to Selangor in search of a better living because of this.The need of the residents
of Selangor may be met in that state.
With 58% of the national GDP, commerce, manufacturing, and services are the key economic
drivers of Selangor. since a number of national enterprises have been assembled here. A
global production organization has also established bases in Selangor. Klang and Shah Alam,
Rawang, Selayang, Subang Jaya, and Ampang Jaya are just a few of the cities in Selangor.
Selangor's primary purpose is Port Klang, which serves as Malaysia's principal port.
Selangor's second-largest contributor, accounting for 40.1% of the state's GDP, is the service
sector. And last, one of Selangor's expanding economies is agriculture. It contributes 1.4% to
the state's GDP. Agriculture-related industries including palm oil and rubber plantations fueled
Selangor's agricultural economy.

3.5 Selangor Property Market

Bilangan dan Nilai Pindah Milik Harta Tanah dan Perubahan Tahunan 2017 - 2021

Volume and Value of Property Transaction and Annual Changes

2017 - 2021

Tahun Jumlah Pindah Perubahan Jumlah Pindah Nilai / Perubahan

/ Year Milik / Volume Milik / Change in Volume Value Nilai / Change
of Transaction of Transaction (% ( in Value ( % )
('000) ) yr-on-yr RM Billion) yr-on-yr

2017 311.82 -2.7 139.84 -3.8

2018 313.71 0.6 140.33 0.3

2019 328.65 4.8 141.40 0.8

2020 295.97 -9.9 119.07 -15.8

2021 300.49 1.5 144.87 21.7

Table 3.1: Volume and Value of Property Transaction and Annual Changes 2017-2021
(Sources from Property Market Report by JPPH)

CHART 3.0 : Volume of Transaction 2017-2021

(Sources from Property Market Report by JPPH)

CHART 3.1 : Change in Volume of Transaction 2017-2021

 (Sources from Property Market Report by JPPH)

The chart 3.0 shows that the number and value of property transfer is most frequent in 2019
which is 328.65 while the lowest amount is in 2020. The lowest amount is likely due to the
year in which Malaysia has been hit by the COVID-19 disease. According to the line graph,
we can see the trend of increasing and decreasing funds that occurs every year. In 2017 until
2019, the trend of the line graph is increasing, but there will be a decrease in 2020. After
2020, i.e. 2021, there has been an increase again in the change in the transfer value of the
property.

Year 2018 2019 2020 2021

Existing Stock 279,806 293,928 306,414 320,968

Completion 2,902 1,653 8,496 2,533

Incoming Supply 53,266 72,860 75,008 66,163

Planned Supply 50,491 53,909 64,332 74,598

Total 386,465 422,350 454,250 464262

(Sources from Property Market Report by JPPH)

Table above shows the overall property supply of all residential units in Sepang which
comprising of the existing stock, the completion the existing supply and and as well as the
incoming supply and the planned supply from the latest 4 years from 2018 to 2022.
 The bar chart above interprets the data of residential unit supply in Sepang which the
resources are from the Property Market Report by JPPH. The bar chart shows the
combination of all overall supply of all types of residential units from the year 2018 to the year
2021. There is an increase in the existing stock of residential units from the year 2016 to
2019. In 2021, it shows the highest existing stocks which is 320,968. For completion, the bar
chart shows an uncertain number of units in 2019 it decreases in 2019 and 2021. However,
the incoming supply for 2018 to 2020 its increase and decrease in 2021. Lastly,the planned
supply highly decreases from 2018 to 2021.
 (Sources from Property Market Report by JPPH).

The number of transactions in Sepang District are depicted on the graph. The most
transactions are always in the residential sector, with 786 in 2019 compared to 727 in 2018.
This indicates a growth of 59 transactions. Meanwhile, the number of transactions for land
development in Sepang increased, with 57 transactions reported in 2019 compared to 46 in
2018. Additionally, there has been a little increase in the number of commercial transactions,
which now total 95, by 31 transactions. Agriculture is one industry where transaction volume
is falling. In 2018, there were 46 trades, however in 2019, there were just 33. In Sepang, the
total number of industrial transactions increased from 15 in 2018 to 21 in 2019.
3.6 Property Supply Analysis

Supply is a fundamental economic concept that refers to the complete amount of an item or
service that is made accessible to the consumer. If observed on a graph, the amount available
at various prices or the quantity at a specific price may both affect supply. This is strongly
related to the demand for a good or service, which is always the same. However, if costs rise
due to corporations' desire to maximize profits, output will rise.

3.6.1 Existing Stock

3.6.1.1 Existing Stock Supply for Residential Units by Type in Sepang, Selangor

Review Period 2018 2019 2020 2021

Single Storey Terrace 31,709 32856 33836 33868

2-3 storey terrace 78,706 83566 91408 97,063

Single Storey Semi-Detached 13,795 14460 14928 15122

2 - 3 Storey Semi-Detached 12,017 17890 13720 14588

Detach 8204 8310 8368 8424

Town House 6576 6584 7272 9109

Cluster 7540 7540 7604 7972

Low Cost House 17148 17148 17148 17148

Low cost Flat 11452 11452 11452 12312

Flat 37020 37020 37020 37620

Condominium 55639 57132 63658 67742

/
 Apartment

Table 3.2 : The number of existing supply of resident in Sepang , Selangor

(Sources from Property Market Report by

JPPH)

CHART 3.1 : Existing Stock of Residential

(Sources from Property Market Report by
JPPH)

Based on the table 1 and figure , the highest of existing stock in Sepang is 2-3 storey terrace
which is 97,063 in 2021 while the second highest is condominium or apartment which is
91,408 in 2020.
3.6.1 Completion

Completion for Residential Units by Type in Sepang, Selangor

Review Period 2018 2019 2020 2021

Single Storey Terrace 118 104 32 1663

2-3 storey terrace 1077 441 3460 146

Single Storey Semi-Detach 52 272 144 146

2 - 3 Storey Semi-Detach 42 312 44 266

Detach 0 12 12 48

Town House 0 0 688 363

Cluster 0 0 0 0

Low 0 0 0 0
Cost
House

Low cost Flat 0 0 0 0

Flat 0 0 0 0

Condominium 1613 512 4116 47

/
Apartment

TABLE 3.3 The number of residential in Sepang, Selangor

(Sources from Property Market Report by
JPPH)
 CHART 3.2 : The number of completion of residential in Sepang
(Sources from Property Market Report by
JPPH)

Based on the table 3.3 and chart 3.2, the highest of completion in Sepang is Serviced
Condominium or apartment in 2020 while for the second highest is 2-3 storey
terrace followed by Stratified. For cluster, low cost house, flat and low cost flat recorded zero
transactions from year 2018-20121.
A) Incoming Supply.
Incoming Supply for Residential Units in Sepang, Selangor, Broken Down by Type.

Review Period 2018 2019 2020 2021

Single Storey Terrace 2652 2430 752 863

2-3 storey terrace 19032 23112 24485 24670

Single Storey Semi-Detach 1334 1304 440 539

2 - 3 Storey Semi-Detach 4800 4152 3284 2416

Detach 836 784 724 561

Town House 4743 8046 10654 2416

Cluster 432 432 368 561

Low Cost House 876 876 876 7170

Low cost Flat 882 1012 1012 114

Flat 2416 2716 2716 1587

Condominium 15263 27996 29697 27562

/
Apartment

TABLE 3.4 The number of incoming supply for residential in Sepang

(Sources from Property Market Report by
JPPH)
 CHART 3.3 The number of incoming supply for residential in Sepang
(Sources from Property Market Report by
JPPH)

Based on table 3 and figure 17, the highest incoming supply in Sepang is
Condominium which is 29,697 in 2020 while the second highest is also condominium which
is 27,996 in 2019. So far, single storey terrace,2-3 storey terrace, single storey semi-
detached, 2-3 storey semi detached, detached, town house, cluster, low cost house and flat
are decreasing every year.
B) Planned Supply

Review Period 2018 2019 2020 2021

Single Storey Terrace 564 558 743 3866

2-3 storey terrace 18074 22189 24059 23962

Single Storey Semi-Detach 408 438 414 941

2 - 3 Storey Semi-Detach 2018 2127 2561 2592

Detach 2404 2439 2396 2437

Town House 1777 1512 2142 8351

Cluster 176 176 264 308

Low Cost House 44 0 0 1

Low cost Flat 2854 2724 2724 2162

Flat 300 119 476 8061

Condominium 21872 21627 30695 21917

/
Apartment

TABLE 3.5 : The number of planned supply for residential in Sepang

(Sources from Property Market Report by
JPPH)
 CHART 3.4 : The number of planned supply for residential in Sepang
(Sources from Property Market Report by
JPPH)

According to table 3.5 and chart 3.4, serviced condominium or apartments are the
type of supply that is most anticipated in Sepang while 2-3 Storey Terraced are the next
highest. Then, single storey terrace, 2-3 storey terrace, single storey semi-detached, 2-3
storey semi detached, detached, town house, cluster, low cost house, low cost flat and flat is
uncertain. Some go up and some go down every year.
3.7 Demand Analysis

For demand is an economic notion that describes a consumer's willingness to pay for
a good or service and their desire to purchase it. A good or service's price would rise if all
other factors were kept constant while the requested quantity was decreased. A market's total
quantity required is the sum of all customers' market demands for a particular good. In an
economy, the aggregate demand is the desire for all commodities and services.

3.7.1 Population
3.7.1.1 Population and Annual Population Growth Rate by State from 2020 to 2022.

Population and annual population growth rate by state, 2020-2022

State 2020 2021 2022

Number of Number of Growth Number of Growth

Residents Residents rate (%) Residents rate (%)

(Million) (Million) (Million)

Johor 4.0 4.0 0.3 4.0 0.1

Kedah 2.1 2.2 0.9 2.2 0.9

Kelantan 1.8 1.8 1.1 1.8 0.9

Melaka 1.0 1.0 0.6 1.0 0.3

N. Sembilan 1.2 1.2 0.3 1.2 0.4

 Pahang 1.6 1.6 0.6 1.6 0.7

Perak 2.5 2.5 0.8 2.5 0.2

Perlis 0.3 0.3 0.9 0.3 0.8

Pulau Pinang 1.7 1.7 -0.0 1.7 -0.1

Sabah 3.4 3.4 -0.2 3.4 -0.6

Sarawak 2.5 2.5 0.5 2.5 0.2

Selangor 7.0 7.0 0.3 7.0 0.3

Terengganu 1.1 1.2 1.8 1.2 1.4

W.P. Kuala 2.0 2.0 -0.9 1.9 -1.0

Lumpur

W.P. Labuan 0.1 0.1 0.9 0.1 0.9

W.P. Putrajaya 0.1 0.1 5.4 0.1 4.3

TABLE 3.6 The number of population and annual population growth rate by state

(Sources: Department of Statistic )

In addition, there are 10 states recording growth rates higher than the national growth rate.
Three states that recorded the highest population composition in 2022 is Selangor (21.6%)
followed by Johor (12.3%) and Sabah (10.4%). On the other hand, W.P. Labuan and W.P.
Putrajaya noted the lowest population composition which is 0.3 % and 0.4 % respectively.
However, W.P. Putrajaya recorded an annual population growth rate the highest for the period
2021-2022 which is 4.3 percent. For the first time, residents of Malacca will reach 1.0 million
people in 2021”.

3.7.2 Income Level

3.7.2.1 The number of income level in Selangor

CHART 3.5 : The number of income level in Selangor

(Sources: Department of Statistic)

On average, Sepang recorded the highest income (RM12,254) followed by Petaling

(RM12,145) and Gombak (RM11,536). Meanwhile, other administrative districts recorded an
average monthly income below the state level of RM10,827. The average monthly household
income for all administrative districts has increased where almost all administrative districts
exceed the average growth rate of the state i.e. 4.5 percent. Kuala Langat recorded the
highest rate increase of 7.9 percent followed by Hulu Selangor (7.1%), Sabak Bernam (6.6%),
Sepang (6.4%), Kuala Selangor (6.2%), Gombak (5.1%) and Klang (4.9%).

CHART 3.6 : The number of income level in Selangor

(Sources: Department of Statistic)

Among the five districts in Selangor, the Sepang District has the second-highest
income level, as seen in the graph above. The monthly average salary in Sepang District is
RM 8,937. Because of the high average income, residents in Sepang District can afford to
purchase the homes they've always desired to possess. Due to their greater affordability and
purchasing power, people with higher incomes will also purchase nicer and higher-quality
residences to improve their quality of life there. As a result, there will be an increase in
demand for commercial properties in Sepang District.

The key conclusion is that 2,153.5 thousand persons in Selangor received a monthly salary
or compensation in 2018, up 0.3 percent from the previous year. The average monthly income
and wages climbed 6.0 percent to RM3,668 from RM3,454 in 2017, while the median monthly
salary and wages increased to RM2,695 from RM2,580 which is expanding at a pace of 4.4
percent.

3.7.3 Ethnic Group

3.7.3.1 Percentages of Ethnic from 2020 to 2022

CHART 3.7: Percentages of Ethnic from 2020 to 2022

(Source: Unit Perancang Ekonomi Negeri (UPEN) Selangor.)

The proportion of Bumiputeras increased to 60.0% in 2019 from 59.7% in 2018. Chinese
represented 26.7 percent of the total population in Selangor (2018: 26.9%), Indians 12.4
percent (2018: 12.6%), and other ethnic groups 0.9 percent (2018: 0.8%).
3.8 Price
3.8.1 The sales transaction records of several types of residences

CHART 3.8 The sales transaction records of several types of residences

The graph above shows the sales transaction records of several types of residences
from September 2020 until November 2022. From the records we can see that the highest
price for the apartment is RM208000 while the lowest price is RM150000. Next, the highest
prices for bungalows and cluster houses are RM560,000 and RM235,000 while the lowest
are RM420,000 and RM180,000. Moreover, the highest price for flat, semi-D and terrace
houses is RM300000, RM1038000 and RM846200 respectively. The lowest price for flat,
semi-D and terrace houses is RM100000, RM280000 and RM70000 respectively. In addition,
the median price for this residential complex is RM330000.

3.9 Recommended Price for Residential and Commercial Property

The recommended price for residential and commercial property in the Sepang district
is shown in the table below. The suggested price was determined by a pricing analysis using
data from the Property Market Report. The suggested price is listed with a minimum and
maximum.

Area Building Type Minimum Maximum

Types (RM/Unit) (RM/Unit)

Sepang Landed Bungalow 110,000 750,000

Cluster house 180,000 235,000

Semi-D 50,000 1,038,000

Terrace house 55,000 920,000

Non-landed Apartment 150,000 250,000

Flat 245,000 300,000

TABLE 3.9 Recommended Price for Residential and Commercial Property

SWOT Analysis
An analysis of the proposed site was done in order to identify the opportunities and threats
that the site would face, as well as its strengths and weaknesses. This can be accomplished
by taking into account the prospective site's features, such as size, status, and land
classifications.

3.9.1. Strength

 The town has a lot to offer because it is a hub for the growth of the food
industry and can convince investors to make investments.

 There is sufficient accessibility for the area, as well as a large industry to

expand.

3.9.2. Weakness

 There is a lot of undeveloped property that the investor is overlooking.

 Lack of eco-tourism activities due to the town's distance from the main
metropolis, despite the availability of public transportation.

3.9.3. Opportunity
 It is appropriate to develop the subject land because it is close to the city.
The community may find it more feasible and convenient to commute
between their homes and places of employment if the property is developed
with a residential and commercial design, for example. In addition, it is close
to a variety of services and facilities such markets, hospitals, and
educational facilities.

 Given that the town has a number of outdated structures, investors may be
drawn there by redesigning the older structures to match the more modern
ones.
3.9.4. Threat
 The developer may encounter fierce competition when trying to find potential
buyers for the properties on the land once it has been constructed. This is due
to the neighbourhood’s numerous attractive residential and commercial
developments. Consequently, the developer must employ effective marketing
techniques to draw in customers through the deployment of an effective
marketing strategy.

 The proximity of the Lebuh Wadi Ehsan to the subject property increases the
likelihood that the air in the neighbourhood could be contaminated due to the
high volume of vehicles that utilise the road.
4.0 Competitor Analysis

Before beginning any construction in the area, a competitive study is essential. Finding out
the market's rivals' strengths and shortcomings is the major goal of competitive analysis. We
can learn about the advantages and disadvantages of rivals' development in the
neighborhood by recognising the competition. As a result, we can establish plans that will
benefit our progress. The residential and commercial sectors that compete with our intended
development on the subject site are of the same types.

4.1 Competitors of Residential Sector towards the Subject Property

Residential developments with the same features as our proposed development are available
for selection. The table below compares the 2 (two) different houses we suggested, a double-
story semi-detached terrace house and a single-story terrace house. Each double storey
semi-detached terrace house has 3 (three) developments of competitors, located in Taman
Desa Pinggiran Putra, Taman Mas Sepang (Dengkil), and Taman Putra Perdana. Regarding
the single-story buildings shown in Taman Kota Warisan Permai, Taman Warisan Bestari,
and Taman Pantai Putra. All of which are 30 kilometres (km) or less away from our subject
property. We were unable to locate the closest development to the subject property, thus it is
a bit far.

4.1.1. Summary of Terraced House Competitor

Taman Kota Warisan Taman Warisan Bestari Taman Pantai Putra

Permai

Types of Single Storey Terrace Single Storey Terrace Single Storey Terrace
units House House House

Location Taman Kota Warisan Taman Warisan Taman Pantai Putra,

Permai, Kota Warisan, Bestari, 43800 Dengkil, 43950 Sungai Pelek,
43900 Sepang, Selangor Sepang, Selangor
Selangor, Malaysia

Distanc
e (km)
7.93km 7.2km 29.3km
 Time 18 minutes 15 minutes 30 minutes

Area 130 sqm 112sqm 121sqm

(sqft)

Price Range from RM195,000 Range from RM Price ranges from

(RM) - RM 320,000 200,000 – RM420,000 RM290,000 – RM
400,000

4.1.2. Summary of Double Storey Semi Detached House

Taman Desa Pinggiran Taman Mas Sepang Taman Putra Perdana

Putra (Dengkil)

Types of Double Storey Semi- Double Storey Semi- Double Storey Semi-
units Detached Terrace House Detached Terrace Detached Terrace House
House

Location Taman Desa Pinggiran Taman Mas Sepang, Taman Putra Perdana,
Putra, Sungai Merab, 47100 Puchong, Presint 1, 62000,
43000 Kajang, Selangor Selangor Putrajaya, Selangor
 Distance 1.9km 14.8km 4.77km
(km)

Time 4 minutes 20 minutes 12 minutes

Area 130 sqm 156sqm 241sqm

(sqft)

Price Range from RM340,000 - Range from RM Price ranges from

(RM) RM 499,000 140,000 - RM600,000 RM95,000-RM420,000

4.2. Competitor of Commercial Sector

Sg Merab

Bandar
baru bangi

Subject Property Bandar Baru

Lembah Selatan

We can choose among commercial developments that share the same features as our
planned development. There are 3 (three) competitors that can be found in our surrounding
locations, located in Sg Merab, Bandar Baru Lembah Selatan, and Bandar Baru Bangi, all of
which are roughly 11 kilometers (km) from our subject property. Since there aren't any double
storey commercial lots available in our near area, the competitors we selected are rather
away from the subject property. But it just takes around 15 minutes to get to these places.
As a result, in order to compete with the current housing project, we must raise our effort by
employing the most up-to-date design to ensure that our planning application will be able to
compete with these other projects in the area. To make our projected development stand out
more, we decide for a unique design. For our intended development in the commercial sector,
those were our competitors' closest developments.

4.2.1. Summary of Double Storey Shophouse Competitor

Sg Merab Bandar Baru Lembah Bandar Baru Bangi

Selatan

Types of Double Storey Shop Double Storey Shop Double Storey Shop
units Lot Lot Lot
Location Pinggiran Putra, Sungai Jalan BBLS 1, Bandar Bloc C, Ostia Bangi
Merab, 43000 Kajang, Baru Lembah Selatan, Business Avenue,
Selangor 43800 Dengkil, Seksyen 14, 43650
Selangor Bandar Baru Bangi,
Selangor
Distance
(km) 4.2km 6.46km 7.43km
Time 10 minutes 13 minutes 15 minutes

Area (sqft) 100sqm 140sqm 152sqm

Price (RM) Price ranges from Price Range from Price Range from
RM350,000 – RM700,000 – RM399,000 –
RM460,000 RM988,888 RM420,000
5.0. Proposed Development Plan
Lantana Development Sdn. Bhd. had chosen to propose a mix development for residential
and commercial purpose. This project development is called as the “Community Green”
development. The location of our site which is in Sepang is considered as a strategic location
as it Sepang area are one of the growing developments which will be beneficial for our
development in order to generate profit.

The proposed development is to build a mixed development on the land consist of residential
and commercial sector. Furthermore, we determine that the purpose of land use with using
60% allocated for development and remaining 40% allocated for infrastructures and open
spaces.

Referred to the land use analysis, sixty percent (60%) of the total land size is fill with mix
commercial and residential building which comprises a combination of terraced house,
Semidetached House and Shop office, the remaining forty percent (40%) of the land will be
used for open space, facilities, and infrastructures such as parking, road, recreational area,
water tank, drainage, sewerage treatment plant, electrical substation (TNB) and surau. All
above these, we are followed the guidelines prepared by the local authority which is Majlis
Perbandaran Sepang (MPSepang). The number of building and type of infrastructures to be
provided is stated as below:

Acre Area (sqft)

Total Land Area 10 435600
Development Area
6 261360
(70% of Total Land Area)
Facilities, Infrastructure and
Open Spaces 4 174240
(30% of Total Land Area)
5.1. Highest and Best Use
The highest and best use is described as the usage that maximizes its potential
and is physically practicable, legally permitted, and financially practical.

I. Physically practicable
To obtain the greatest and best utilization physically practicable, our
suggested project presented development that was equipped with the
most recent and advanced technologies, best concept and attractive and
peaceful atmosphere compared to other existing developments.

II. Legally permitted

In order to comply with the law, we referred to and received approval from
MPS regarding the zoning designation. The zoning category for our region
is residential, according to MPS. As a result, our proposed development is
legally permitted.

III. Financially practical

With the fulfilment of the requirements in the physically practicable and
legally permitted, we considered that our proposed development would be
financially feasible from the income generated by our proposed
development project.

5.2. Concept of Proposed Development

The development concept plan is an important part of the development proposal
planning which is also known as the preliminary plan that needs to be done before
proceeding with the layout plan. The concept plan must take into account the
development potential and constraints analyzed during the site analysis stage.

"Social Capital" can be defined as a set of formal values or norms shared among
group members that allow them to cooperate with each other. "Social capital" is a
network together by sharing norms, values and understanding that facilitates
cooperation within or between groups. Social capital refers to the connections,
trust and reciprocity between individuals and in society, and the resources that
can arise from these connections. These include employment or educational
opportunities for individuals, and cohesion and a sense of security in society.
The concept of "Social Capital" is aimed at relationships, improving public health,
safety and well-being especially for the population.

There is a strong direct relationship between total land use. the number is more
than the use of increase and diversity in the zone, more "Social Capital" increases
the use of numbers contributes to creating many social relationships and common
values and customs between people that lead to an increase in social interaction
and the realization of social capital accordingly. This result can also be used to
build a mixture with a difference in strength coefficient as the soil that uses the
number for the study area as a whole is stronger than that in the mixed
development.

the concept of "Social Capital" is the most potential and suitable to be developed
because the concept plan provided includes all aspects of the need for
development and strategic building placement according to the topography and
elements that have been analyzed. In addition, can be used as a reference when
making a layout plan.
5.3. Layout Plan

5.4.Types of development
5.4.1. Residential
There are two (2) types of housing in the proposed site which are
Terraced House and Semidetached House. Based on the proposed
site, the composition of the housing development can be seen through
the table below based on the layout plan:
Types of Unit Area (acre) Area %
development (sqft)
Terraced House 40 2 87120 20

Semi Detached 32 4 174240 40

House
Total 72 6 261360 60
I. Terraced House
The percentage for Terrace Houses is 20% with an area of 2
acres and the number of house units provided is 40 units.
According to the Selangor State Guidelines 2016, the minimum
size for a Terrace House is 20' x 60'. It is located in the flat area
and at east direction in the proposed site. Accessibility to the
Terrace House area is easy as it is close to Main Road (50'). In
addition, the design for Terraced House is that it has a back
lane and a side lane (separation space), open space is
provided at surrounding of the Terraced house area and is
close to the Surau, Kindergarten and Community Hall.
II. Semi Detached House
The percentage for Semi-detached Houses is 40% with an area
of 4 acres and the number of house units provided is 32 units.
According to the Selangor State Guidelines 2016, the minimum
size for a Semi-detached House is 40' x 65'. It is located in the
North and South direction in the proposed site. It is also located
in a hilly area because hilly areas are suitable for the
development of housing that has a high value such as Semi-
detached Houses. Accessibility to the Semi-detached House
area is easy as it is close to Main Road (50'). In addition, the
design for the Semi-detached House is a along the boundaries
of site with provided their own open space to make it privacy
and safe for children to play on the side of the road with parental
supervision.
5.4.2. Commercial
There is one (1) type of commercial provided in the proposed site which
is Shophouse. This commercial area is located close to entrance of the
site. The area is a strategic area where it can attract the attention of
the public. The table below shows the development area for
commercial area at the proposed site: -
Types of Unit Area (acre) Area %
development (sqft)
Shophouse 8 0.5 21780 5

Total 8 0.5 21780 5

The percentage for Shophouses is 5% with an area of 0.5 acres and
the total number of units provided is 8 units. According to the Selangor
State Guidelines 2016, the minimum size for Shop Houses is 20' x 60'.
The proposed area for the Shophouses is facing the entrance of the
site. According to the Selangor State Guidelines 2016, the design for
Shophouses has a back lane (20') and around it there is a parking
space for the convenience of the public.
5.4.3. Public Facilities
Public facilities are provided to the community to improve comfort and
encourage social interaction between the community. A total of 0.3
acre, which is 3 percent of the total site. The location of public facilities
is at the center of the site to ensure connection and accessibility for
residents. The table below shows the development area for public
facilities at the proposed site: -
Types of Unit Area (acre) Area %
development (sqft)
Community Hall 1 0.15 6534 1.5

Surau 1 0.15 6534 1.5

Total 2 0.3 13068 3

I. Community Hall
Community is provided for the purpose of the public to gather
and do social activities between communities. Provided as
much as 1 unit which is an area of 0.15 acre which is 1.5%
percent of the total site. According to Selangor state planning
guidelines & standards, community hall should be at least 400m
reach meter (5 minutes walking distance). This community
center is located at the center of the site near the residents.
 II. Surau
Provided as much as 1 unit at the center of the site area with
an area of 0.15 acre which is 1.5% percent of the total site area.
It is located next to the community center to make it easier for
the community to gather in the same area. This can make the
area a focal point for the community there.

5.4.4. Open Space, Recreational Area and Green Area

According to the planning guidelines & standards of the state of
Selangor, every area that wants to be developed must provide an open
space or green area of 10 percent of the total site area. Every type of
housing is provided with a green area to ensure the comfort of the
community. A total of 1 acre of open space and green area provided
which is 10% of the total site area fulfill the planning standard. The
table below shows the development area for open space at the
proposed site: -

Types of Unit Area (acre) Area %

development (sqft)
Open Space - 0.85 37026 8.5

Green Area - 0.15 6534 1.5

Total - 1 43560 10
5.4.5. Infrastructure and Utilities
Infrastructure and utilities are provided to fulfill basic need to the
community in daily life. An area of 0.9 acre which is 9 percent of the
entire area is allocated to build infrastructure facilities. Electricity
substations, water tanks and sewage treatment plants are among the
infrastructure and utility facilities that will be provided. The table below
shows the development area for infrastructure and utilities at the
proposed site: -
Types of Unit Area (acre) Area %
development (sqft)
Electric 1 0.05 2178 0.5
substation
Water Tank 1 0.40 17424 4

Sewerage 1 0.45 19602 4.5

Treatment Plant
Total 3 0.9 39204 9

I. Electric Substation
Electricity is a basic need that is very necessary to live life.
Electricity substations are provided as many as 1 unit which are
0.05 hectares using the single chamber type and placed next
to terraced house with buffer or setback requirement.
II. Water Tank
A water tank is provided as much as 1 unit which is 0.40 acre.
The water tank is placed in the end of the site area, which is an
area with a contour height of 80m, the highest on the site.
Surrounded by semi-detached residential areas.

III. Sewerage Treatment Plant

Sewerage treatment plant is provided as much as 1 unit which
are at the behind of terraced house with buffer zone to ensure
the resident’s happiness. The sewage treatment plant covers
an area of 0.45 acre, which is 4.5 percent of the total site.
1.1.1 Road Circulation
The proposed Service Road is in a residential and commercial area.
The width of the service road is 50'. The table below shows the
proposed area for the proposed road network at the proposed site.
Types of Unit Area (acre) Area %
development (sqft)
Road - 1.3 56628 13

Total - 1.3 56628 13

5.0 Marketing Strategy

Marketing strategy is the critical component in evaluating the feasibility of the development
of the land. The marketing strategy determines the collection, positioning, marketing mix
and resource allocation of target market segments. When it is an integral component of the
overall business strategy, it is most effective to define how the organization can effectively
engage clients, prospects and rivals in the market arena. Research on the entire aspect that
occurs around the subject lots was carried out in making these marketing strategies.

 To ensure all the units sold out on time of completion

 Identify potential market target
 Reach the target market
 Conduct successful marketing plan in other to sold all the unit within the accurate
date

5.1 Target Market

Target market can be defined as when the company ultimately decided to concentrate the
marketing efforts of their property to a group of potential clients. In determining a right target
audience, the return on development can be maximized and profit can be generated. It is a
select category of customers to whom a product or service is marketed, based on the
opportunity to actually buy the property. The selection of the respective targets depends on
their ability to buy and invest in growth. The target market defined for the development
proposed is as follows:

 Private workers
The majority of the people living in and near the proposed site are worker
servants with the nearest their offices about 2.5km away. This can be said because there
are mostly private industries in the vicinity rather than government buildings. Naturally,
people would like to live not too close to their workplace and average private workers are
average income earners so our development caters to their need for affordable homes and
provides a sustainable environment.

 Investor
As the development is open for all the buyers, this can probably attract the
investor. The Chinese have a high population after the Bumiputera population which means
there is a high possibility that the Chinese or maybe foreigners can purchase or invest in the
proposed development.

 Individual group
The development also targets private and government retirement which
demand a conducive environment and also secure the security of the neighborhood.
6.0 Financial Analysis

This part will explain about the financial analysis of the project based on projected
gross development value, projected total cost of development, sensitivity analysis,
profitability statement and conclusion. All the calculations are provided in the
appendices sheet.

6.1 Project Gross Development Value

We assess the total projected GDV for this project at RM49,500,000 (Forty-Nine
Million and Five Hundred Thousand Only).

6.2 Projected Total Development Cost

We assess the projected total cost of development of residual method for this project at

RM 27,266,509 (Twenty Seven Million Two Hundred Sixty-Six Thousand Five

Hundred and Nine Only).

6.3 Analysis on the Viability of the Proposed Project

PROFIT AS PERCENTAGE OF GDV

DEVELOPER'S PROFIT RM8,381,108 x 100%
GDV RM49,500,000
Profit as % of GDV 17% more than 15% (profit)

PROFIT AS PERCENTAGE OF TDC

DEVELOPER'S PROFIT RM8,381,108 x 100%
TDC RM41,118,892
Profit as % of TDC 20% more than 20% (profit)
6.4 Variable Rank (Highest to Lowest Sensitive)

Item S.I
Selling Price of
DSSD 1.7
Selling Price of
DSTH 0.8
Selling Price of DSS 0.3
Site Clearence 0
Land Cost -0.8

From the above,the variable is not sensitive to the developer profits.

7.0 Conclusion

Knowing the feasibility of a proposed project, especially in terms of financial

feasibility, as the purpose of conducting this market and feasibility study is an
important factor determining the feasibility of the project.

Most developers and consultants have applied the residual method as a criterion for
judging the feasibility of a proposed project. The residual method derives the residual
value in which from the total amount of development (GDV) minus the total cost of
development (GDC).

We, Lantana Development Sdn. Bhd. completed a market feasibility report.

Therefore, we recommend this as a client driving this proposed development, as this
study has shown that this development has achieved the concept of its highest and
best use.

Also, as explained in the SWOT analysis, the likelihood of this development reaffirms
that risks are appropriately reduced, contributing to the success of the proposed
project. It is very important for students of Real Estate Management to learn how to
derive market feasibility reports using accurate and up-to-date residual method
elements. This knowledge equips students with the information they need to provide
future real-world industries.
8.0 Reference
1. Department of Statistic Malaysia – Gross Domestic Product Growth Rate,
GDP PerCapita of Selangor, Employment, Population, Ethnicity, Median and Mean
income.
2. World Bank - Inflation Rate of Malaysia. Real Interest Rate of Malaysia
Guidebook Electrical Substation Design Standards by Distribution Division,
TNB –Substation
3. Infrastructure and Utility Planning Guidelines by the Planning Department
Towns andVillages of Peninsular Malaysia – Water Tank
4. Selangor State Planning Guidelines and Standards Manual (Third Edition) –
ParkingLot, Play lot
5. Housing Planning Guidelines (GP 001-A) – Road Reserved.
National Property Information Centre at https://napic.jpph.gov.my/portal

6. Green Architecture: A Concept of Sustainability. (2016, January 6).

ScienceDirect.

https://www.sciencedirect.com/science/article/pii/S1877042815062552

7. How To Determine The Highest and Best Use of a Property. (2019, July 23).

Property Matrics. https://propertymetrics.com/blog/highest-and-best-use/