Property Portfolio Management Project: GDV and Recommendation

This project analyzes a property portfolio management scenario for a real estate development in Singapore, focusing on the development of 700 condominium units. The assignment begins with a site analysis, evaluating social and transport amenities near the proposed development. It then delves into market research, assessing supply and demand dynamics, sales projections, and comparable projects. A key component is the estimation of Gross Development Value (GDV), including detailed cost breakdowns for bidding, construction, and other expenses. The project culminates in a final recommendation based on the financial viability and potential returns of the investment. The analysis considers the booming residential market in Singapore, targeting affluent clients, and the project's potential to generate significant revenue through condominium sales. The project emphasizes the importance of market research, financial projections, and strategic planning for successful property portfolio management and investment.

Running head: PROPERTY PORTFOLIO MANAGEMENT
Property Portfolio Management
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
Introduction:................................................................................................................ 2
Site Analysis:...............................................................................................................2
Market Research:........................................................................................................4
Estimation of Gross Development Value (GDV):........................................................5
Final Recommendation:..............................................................................................7
Conclusion:................................................................................................................. 7
Reference and Bibliography:.......................................................................................9

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Introduction:
The main aim of selecting the project is to increase the relevant revenue from
investment, which could directly help in generating higher return from investment.
The evaluation of the benefit that could be conducted from the investment option
might directly help in generating higher revenue. In addition, the overall development
of 700 unites of condominium needs to be conducted in the selected plot, as it might
help in generating higher returns from investment. The assignment also focuses in
delivering higher revenue from investment, which could help in generating higher
revenue. This relevant increment in the overall revenue could be attained from
investments, which might directly increase the relevant returns from investment.
However, from the evacuation of the Singaporean market condition it could be
identified that the residential market in the country is relatively at boom. The
company is mainly targeting the rich clients, who could afford condominium for their
residential purposes. This relevant increment in the overall residential market could
mainly help in generating the required level of profitability. The increment in
population and the facilities that is been provide from the project location can mainly
help in attracting more customers and sell all the relevant condominium that will be
developed by the organisation.

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Site Analysis:
Figure 1: Mentioning the site location
(Source: as depicted in the case study)
The above figure mainly represents the site location, where the overall project
needs to be conducted. The depiction of the site condition mainly represents the
overall amenities that could be provided from the project site. The site mainly has
both social as well and transport facilities, which could be enjoyed by the
organisation. In addition, the overall evaluation of the site mainly helps in identifying
the relevant amenities, which could be provided from the new project. The relevant
project is mainly situated near major amenities that are used by individuals, while
residing in a particular residential plot. In this context, Bodie, Kane & Marcus (2014)
mentioned that properties with access of high amenities mainly have higher price
range among customers. The relevant description and evaluation of the amenities
are mainly depicted as follows.
Social amenities:
Amenities such as primary and secondary school are also provided near the
projected land parcel, which could help in supporting the residence of condominium.
The social amenities mainly, help developers to attract more customers into the

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vicinity, which directly increases prices of the property. The residential plot also has
Different types of schools with relevant education levels that could be helpful for
citizens to increase their intellectual condition. The plot is also surrounded by two
different schools of different levels, which could allow the residence to support their
families with studies. The residential plot also has access to library and other city
center facilities mainly help in improving living standards of the residents living near
the plot. In this context, Booyens & De (2016) stated that residential plots having
high social amenities have high demand among customer and give the highest rate
to the builder.
Transport amenities:
This project is also situated near Queenstown metro station, which could
provide the relevant transport facility to the residents of the new residential
project.The residential plot also have transport amenities which could allow the
residence to avail different types of facilities in their daily life. Transport amenities
such as metro station, highways and adequate transport facility would eventually
allow the residence of the plot to utilize the facilities in their daily life. The residential
plot also has facilities for the residence for accessing the petrol pump, which could
be helpful in their daily life (Chourmouziadis & Chatzoglou, 2016).
Hospital and shipping amenities:
The site also has facilities for hospital and shipping amenities, which could
directly help in supporting activities of the residents in the plot.
Seeing the overall facilities that are provided from the relevant site the
valuation of the project is seemed to be adequate, which might help in generating
higher revenue from investment. There is lower bid, which could be conducted for
the current place, where the organisation could adequately win the relevant bid
process. Furthermore, the overall cost assumption is mainly detected to be at
S$483.18 million, which could directly help in generating the required level of profits
for the organisation. Hence, the relevant S$871.14 per square foot per plot is mainly
identified to be the relevant cost for 99 years for the relevant project. The reduced
bidders could mainly decline the competition level of the organisation.

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Market Research:
The relevant market research mainly involves demand and supply outlook of
the current plot, which might help in generating higher revenue from investment.
Adequate adjustments and comparables are also conducted from investment, which
might directly involve relevant sales projections, time-frame and sales strategy.
Relevant recent policies affecting the value of organisation are also evaluated.
Gutierrez & Magnusson (2014) mentioned that with the adequate market research
organisation are mainly able to identify investment opportunity. From the relevant
evaluation of the current market conduction the organisation is mainly able to identify
the relevant supply and demand factors of the residing condominium. The relevant
market research directly indicates that the currently there are low residential
complex, which is situated in the current place. In addition, there is low supply of
residential condominium near Dundee Road in Queenstown, which directly reflects
the increased demand that could be seen among potential residents. The demand
for residential condominium is relatively higher among potential customers, which
could directly have a positive research for the organisation.
The relevant comparables can be identified from this situation, which could in
turn help in generating higher revenue from investment. In addition, from the overall
valuation the relevant sales projection of 700 residential condominiums is mainly
identified from the current scenario, which could help in generating higher revenue
from investment. The sales projection is mainly estimated from the square foot of the
overall project, which is estimated to be utilised for selecting the relevant project.
From the evaluation of past projects it could be understood that the use of residential
condominium could eventually allow the organisation to generate higher revenue
from investment. The past project launches have been effectively conducting in
Singapore, which could allow the organisation to adequately generate the relevant
profits that could be obtained from investments. Kumar (2014) mentioned that with
the help of adequate evaluation of past projects overall financial viability of the
project can be understood by the organisation. However, the time frame will mainly
take around 5 years for completing the relevant project of residential condominium.
However, relevant sale strategy could also be adopted by the organisation for
selling the residential condominium near Queenstown. In addition, the overall sale
strategy would mainly emphasise on the amenities that could be utilised by residents

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living in land parcel situated at Dundee Road in Queenstown. The adoption of sale
strategy could eventually help in selling the residential condominium and generate
higher revenue from investment. Michalski (2013) mentioned that use of adequate
selling strategy could eventually allow the organisation to generate higher revenue
from investment.
Estimation of Gross Development Value (GDV):
The overall estimation of gross development value could mainly be conducted
by evaluating the financial viability of the project. In addition, relevant fees and costs
need to be identified for the relevant projects, which might help in identifying the
gross development value of the project. Poon & Poon (2017) argued that without the
adequate estimation of cost structure relevant acceptance of the project cannot be
conducted by companies. In addition, the valuation also helps in controlling the
relevant costs, which needs to be conducted for completing the residential
condominium.
The first type of expenses that needs to be conducted for starting the project
of residential condominium is relevant fees. The overall fees such as bidding fees,
planning fees, development and construction fees that needs to be conducted by the
company for completing the relevant project. These fees are mainly considered to be
the overall expenses, which needs to be conducted in the initial stage. The overall
expense on bidding fees needs to be conducted for allowing the company to get
relevant permission in bidding for the land parcel. However, in Singapore relevant
construction and building fees need to provide for adequately completing
construction on vacant land (Schyns, 2016).
The other expenses that need to be conducted excluding fees are the costs
and expenses incurred for completing the residential condominium. In addition, this
relevant expenses needs to be conducted on certain cost such as building materials
and construction costs. The relevant increment in the overall cost needs to be
conducted, which might in turn help in completing the overall project. The
construction of 645 residential condominiums mainly needs a relevant cost structure,
which directly involves different costs for completing the project. From the overall
evaluation of the scenario the cost of rent for the residential condominium is

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appropriate, as the value of bid is relatively high in nature. The overall type of cost
that needs to be executed from the construction site is the expenses regarding
construction of the site. Moreover, these expenses regarding the construction site
could eventually increase different segments of costs needs to be included into their
operations. The construction cost will incur expense such as material costs, labour
cost and equipment cost, which needs to be maintained by the organisation. Souza
(2014) mentioned that identified expenses could mainly help in evaluating the
relevant viability of the construction project and determine the relevant income that
could be projected from the investment.
Particulars Amount
Sale price 645,000,000
Bidding cost 483,180,000
Construction cost
Site work (fees) 5,258,000
Foundation 63,096,000
Framing 26,290,000
Exterior finishes 9,464,400
Interior finishes 8,412,800
Final expenses 11,567,600
Total expenses 124,088,800
The above table mainly represents the overall expenses and income that
needs to be conducted by the company in completing the residential. Hence, the
overall expenses needs to be conducted by the organisation for completing the
overall project.
Final Recommendation:
From the overall evaluation of the current parcel of land relevant benefits that
could be identified from the project can be determined. In addition, the evaluation of
case can mainly help in generating higher revenue from investments. In addition, the
case study mainly represents the overall price range, where relevant bid price for the
parcel land could be conducted. This relevant bidding of the land could eventually

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help in successfully wining the bid for the parcel land. The evaluation of the project
mainly represents the relevant income, which could be generated from the
development of residential condominiums. The overall evaluation could mainly
represent the overall financial statues that could be generated by the organisation.
The financial projection is also identified, which could be used by the organisation for
generating higher revenue from investment. Hence, from the overall evaluation of the
overall project it could be identified that the revenue generated from the operations
can be higher. In addition, the project revenue mainly indicates the high returns that
might be generated from the land parcel.
Conclusion:
From the overall valuation of the assignment relevant viability of the project
can be identified. The relevant valuation of the new project mainly represents the
financial viability of the project where the total selling of 645 residential
condominiums will be conducted. The site analysis and evaluation is also conducted,
where viability of the amenities that could be provided from the site can also be
identified. The residential condominiums could directly reflect income that could be
generated by the organisation.

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Reference and Bibliography:
Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments, 10e. McGraw-Hill
Education.
Booyens, M., & De Beer, J. (2016). Property Portfolio Management.
Chourmouziadis, K., & Chatzoglou, P. D. (2016). An intelligent short term stock
trading fuzzy system for assisting investors in portfolio management. Expert
Systems with Applications, 43, 298-311.
Gutiérrez, E., & Magnusson, M. (2014). Dealing with legitimacy: A key challenge for
Project Portfolio Management decision makers. International Journal of
Project Management, 32(1), 30-39.
Kumar, D. (2014). Return and volatility transmission between gold and stock sectors:
application of portfolio management and hedging effectiveness. IIMB
Management Review, 26(1), 5-16.
LOMBARDI, R., Trequattrini, R., Dumay, J., & Lardo, A. (2016). Modern Trends for
the Strategic Use of Intellectual Property Rights: Dynamic IP Portfolio
Management, Open Innovation and Collaborative Organizations. In Managing
Globalization: New Business Models, Strategies and Innovation. Cambridge
Scholars Publishing.
Low, R. K. Y., Alcock, J., Faff, R., & Brailsford, T. (2013). Canonical vine copulas in
the context of modern portfolio management: Are they worth it?. Journal of
Banking & Finance, 37(8), 3085-3099.
Low, R. K. Y., Alcock, J., Faff, R., & Brailsford, T. (2013). Canonical vine copulas in
the context of modern portfolio management: Are they worth it?. Journal of
Banking & Finance, 37(8), 3085-3099.
Michalski, G. (2013). Portfolio management approach in trade credit decision
making. arXiv preprint arXiv:1301.3823.
Poon, J., & Poon, J. (2017). Engaging sustainability good practice within the
curriculum design and property portfolio in the Australian higher education

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sector. International Journal of Sustainability in Higher Education, 18(1), 146-
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Schyns, P. F. M. (2016). The technological future of the wealth management industry
for portfolio management investment services (Bachelor's thesis, University of
Twente).
Souza, L. A. (2014). Modern Real Estate Portfolio Management (MREPM):
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Srivannaboon, S., & Munkongsujarit, S. (2016, September). Project management
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