Feasibility Study of Residential Duplex Development Project

This report discusses the feasibility study of a residential duplex development project, including macro and micro-environment business drivers, constraints, and goals. It also covers the factors involved in constructing an apartment, such as acquisition of permits, quality services, fire-safety mechanisms, and water safety mechanisms.

Running Head: REPORT ON RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Report on Residential Duplex Development Project
Name of Student
Name of Organization
Author Note

1REPORT ON RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Abstract
The purpose of this project is to develop a report on feasibility study of a development residential
complex. Various factors involved in constructing an apartment is to be taken under
consideration, which includes macro-environment business drivers as well as micro-environment
business drivers. The different factors include acquisition of permits from governmental
authorities, looking after quality services after completion of construction as well as looking for
fire-safety mechanisms, water safety mechanisms are also necessary factors that require attention
during the initial stages of a project. This will help in mitigating the associated risks with
construction projects and help in successful completion of the entire work.

2REPORT ON RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
Table of Contents
1.0 Introduction................................................................................................................................4
2.0 Discussion..................................................................................................................................4
2.1 Goals and Constraints............................................................................................................4
2.2 Macro-environment Business Drivers...................................................................................6
2.2.1 Economic Factors...........................................................................................................6
2.2.2 Competitive Factors........................................................................................................6
2.2.3 Resource Factors.............................................................................................................6
2.2.4 Demographic Factors......................................................................................................7
2.2.5 Technological Factors.....................................................................................................7
2.2.6 Political Factors..............................................................................................................7
2.3 Micro-environment Business Drivers....................................................................................8
2.3.1 Technical Expertise........................................................................................................8
2.3.2 Time Pressure.................................................................................................................8
2.3.3 Suppliers.........................................................................................................................9
2.3.4 Resellers..........................................................................................................................9
2.3.5 Customers.......................................................................................................................9
2.3.6 Competition..................................................................................................................10
3.0 Conclusion...............................................................................................................................10
4.0 References................................................................................................................................11
5.0 Appendix 1...............................................................................................................................11
6.0 Appendix 2...............................................................................................................................11

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4REPORT ON RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
1.0 Introduction
The rise of population in urban areas have increased exponentially over the years.
Nowadays, people are shifting from such high populous places in order to avoid pollution as well
as congestion. The need for residential complexes over the years in Regional Centre’s are on the
rise because of which real estate sellers and commercial businesses are buying land areas in
regional parts of the country for making homes, which are economically feasible as well as away
from the noise and congestion of urban areas (Fan,MacGill and Sproul, 2015). Cliftleigh
Meadows Estate in Cliftleigh, which is located 15 minutes away from the Hunter Valley is a 10
minutes distance away from Cliftleigh Meadows having access to a huge parking space. There
are cycling lanes and walkways around the residential area with facilities ranging from hospitals,
educational institutes, and shopping malls including recreational facilities. The land rates are
cheap with an estimated price of $159,900 having a land size of 500.7 m2, which is ideal for
constructing a duplex apartment within the estimated budget for the project (Henderson et al.,
2017). The timeframe for completion of the construction work and listing of the property for sale
is estimated to be around nine months from the date of commencing project work.
2.0 Discussion
2.1 Goals and Constraints
The goals for constructing the duplex apartment are,
i. Completion of Project within the estimated timeframe of nine months.
ii. Completion of entire project within the allotted budget of $800,000.

5REPORT ON RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
iii. Building a duplex apartment with facilities including four bedrooms, three bathrooms,
kitchen, dining space.
iv. Monitoring construction activities to check for quality work done by builder.
v. Choosing of appropriate builder to complete the project.
vi. Quality testing of materials used for construction.
vii. Looking after risks associated with fire-safety hazard in apartments.
viii. Acquisition of governmental papers and official documentation for permit and clearance.
ix. Hiring interior designers to renovate internal aspects of the house starting from flooring,
designing, interior and exterior painting.
x. Buying of raw materials from government certified material providers.
The successive building of a complex on a land bought in a residential complex have
certain constraints associated with it. The primary constraint associated with this project is the
provision of budget within which buying of land for building the house, appointing builders for
making the apartment, procurement of raw materials for the construction, successive inspection
for fire safety, water safety and security mechanisms with modern technological facilities are
important areas which need to be addressed for mitigating risks related to construction of a
building (Australia, 2019). Listing of the property for sale to potential customers online, once the
work is on the verge of completion so that there is no delay in selling the property are necessary
factors, which require attention from the project initiation phase. Promotion for the house built
on social media platforms as well as websites selling houses must be contacted for listing of
house for buyers to look for potential homes to stay. Choice of area should be made on the basis

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of transportation availability including parking space so that customers do not have to look for
parking space for personal cars.
2.2 Macro-environment Business Drivers
2.2.1 Economic Factors
The factors, which are responsible for affecting the purchasing parity and spending power
of a customer in a specific region are described as economic factors associated with feasibility of
a project. Examples can be cited where companies are complaint with following certain norms
like the Gross Domestic Product (GDP), growth rates associated with GDP, levy of duty tax for
imported materials, buying of properties at a fixed rate over varying interest rates
(Yourhome.gov.au, 2019). Since, Cliftleigh Meadows has good quality lands available at an
affordable price where consumers have provision of loan approvals, thus making the region a
family friendly and economically feasible investment for a buyer.
2.2.2 Competitive Factors
Competitive factors related to construction of a house and subsequent selling has certain
paradigms. Real estate development business is a highly competitive market and thus pricing of a
house needs to be done keeping factors like price listed by other sellers, price of properties sold
in adjacent regions, profit share owned by the business in selling of house as well as maintenance
and customer service provided by competitors must be accounted for (Realestate.com.au, 2019).
Detailed market study should be done before listing of price. Interest rates at which loans are
provided should also be devised by arranging meeting with real estate loan providers to help
customers buy a property of their choice.

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2.2.3 Resource Factors
Houses nowadays have different facilities, which are quintessential for providing best
quality user experience. Resources include protection mechanism against fire hazards, water-
safety, and high-quality wood for flooring and other factors should also be taken under
consideration (Andrić et al., 2019). The availability of parking space, playgrounds for kids to
play, and open space as well as open space because of which buyers are planning on buying a
house in a location in residential areas. Security mechanisms are important due to rise in theft in
different places, which is a growing concern for people buying houses to stay. The estate of
Cliftleigh has all the aforementioned facilities making it an ideal place to build a duplex
apartment.
2.2.4 Demographic Factors
Demographic factors play an important role in selling a property. The rise in population
is directly related to congested places, which are not liked by people when buying a property
(Warmerdam and Lingard, 2017). The density of population, gender, occupation of people
staying around are important factors that buyers look for when buying a house. Cliftleigh is a
real estate with near about one thousand home spaces covering an area of one hundred and
twenty five acres of parking space. This is ideal for buying a duplex complex due to less
congestion being a residential complex area.
2.2.5 Technological Factors
Technological factors are an important consideration for macro environment business
drivers (Park and Tucker, 2017). Modern day houses are facilitated with in-house sensors for
temperature controlled living spaces, opening and closing of doors through mobile applications.
Technological factors also influence businesses, where using of mechanisms like wireless mode

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of communication, use of websites for listing of business are necessary factors contributing to
the success.
2.2.6 Political Factors
Businesses are under limitation due to political factors. Certain aspects like regional laws
dictated for buying and selling of properties by governmental organizations, which play an
important role in restriction of various mechanisms in gathering permits from law agencies living
in a residential complex (Howlader et al., 2016). These are controlled by acquiring permits from
law agencies prior to commencement of work and following compliance standards set forth by
organizations controlling the entire process.
Thus, it can said that macro-environment business drivers are a part of complex
mechanisms and standards, which must be adhered to and followed for completion of a project
within the provided timeframe as well as requirements allotted.
2.3 Micro-environment Business Drivers
2.3.1 Technical Expertise
Success of selling a house has various factors responsible for completing the entire
framework with less errors. The experts appointed for different work include workers, interior
designers, paint experts, lighting experts, security professionals, carpenters, plumbers, fire-safety
experts who are directly related to success of completing a house development project (Morris et
al., 2016). Selling of properties are not directly done by real-estate business experts instead are
done by real-estate brokers who are experts in listing of properties for sale as well as procuring
customers. GRB Constructions chosen for renovating the entire house are experts in their domain
with 15 years of experience in building houses and renovating them based on customer demand.

9REPORT ON RESIDENTIAL DUPLEX DEVELOPMENT PROJECT
2.3.2 Time Pressure
Successful conduction of a real-estate project has different aspects associated with it.
Time constraint is an important factor, which requires attention from initiation phase of a project
(Yen et al., 2018). This is due to incurring of extra cost while number of days is increased when
the entire process is not completed within the allotted timeframe. This is due to providing money
to builders and associated workers who are on contract basis waging scheme and subsequent
delay in completion leads to more payment for workers on a contractual basis (Shearer et al.,
2016). Time pressure is persistent with allotted budget, which should be monitored while a
project is on course.
2.3.3 Suppliers
Suppliers providing with raw materials for building the house are responsible for success
in a real-estate business (Fang, Wu and Wu, 2015). There are certain materials, which can be
procured from large organizations where prior notification of required materials are sent.
Suppliers listed under the official Australian government website who are using products and
materials listed with green tick certified as well as under compliance with Good Environmental
Choices Australia should only be considered for providing with raw materials required for the
project.
2.3.4 Resellers
Resellers take products made by an organization and send it to third party sellers for
listing of products in websites and other mediums of promotion related to buying and selling of
product. The success of a business is related to successful working mechanisms devised by real-
estate sellers while working with other third party vendors in listing properties for sale (Chileshe

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et al., 2016). Examples can be cited, where a famous reseller due to better image and standards
of product in a market for a reseller.
2.3.5 Customers
Customers play a pivotal role in success of product in a market. Creation of interest of a
product in a market, in case of real estates is not only related to promoting them on online
websites and portals but reputation of a real-estate business is influenced by satisfactory services
provided to customers have an important role in devising successive marketing strategies for
customers in the market.
2.3.6 Competition
Rising concern in real-estate businesses is competition in the market. Businesses are
constantly devising mechanisms to improve quality of services provided in order to interest
potential buyers (Hay et al., 2017). Competition is evident for similar businesses within the
market, and procedural mechanisms adopted by real-estate businesses to improve selling parity
of a product is an important factor to be taken under consideration.
Both macro-environment business drivers and micro-environment business driver’s play
a subsequent role in marketing of a product, in case of real-estate business product relates to top
quality apartments for the consumer (Rogers and Dufty-Jones, 2015). The marketing end of a
business needs to analyze both macro and micro business drivers while developing business
strategies as well as marketing strategies. This helps in creation of a brand value and a reputation
of a business. Builders contracted for making the apartment with modern day facilities are GRB
Construction’s who are an expert in the building and renovation sector.

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3.0 Conclusion
The rise in density of population has led to creation of residential complexes, which are
away from the noise and pollution of urban areas. Cliftleigh Meadow residential complex located
at William Tester Drive in Cliftleigh Meadow estate has provision for building a duplex
apartment where facilities including temperature controlled bedrooms, a large hallway, kitchen
spaces and various safety mechanisms, which include fire-safety measurements, security
mechanisms for a high standard living facility. There are near about one thousand apartments in
this place, which includes a large parking area for people to park cars. Building of houses require
permits and clearance from government officials in using materials used by sellers from
government certified places. However, there are macro-environment business drivers and micro-
environment business drivers. This includes economic factors, competitive factors and other
factors associated with deciding feasibility of a project. The primary factors responsible for
success of a real-estate project is related to selling of the property at an affordable rates to
customers. Property for sale must be listed in different online selling forums where potential
buyers can contact respective business personnel to buy an apartment.
The chosen location is perfect to build a duplex apartment due to affordable land rates
and location of the complex. The property is located in Hunter Valley, which is ten minutes away
from Maitland. Entire complex is designed in such a way that it promotes a high quality of life,
where individuals can experience the best environmental condition in entire New South Wales
region. Size of land bought is ideal for a duplex apartment where the real-estate businesses are
making provisions for consumers to avail loan facilities from different providers registered and
controlled by governmental bodies. Thus, Clifleigh Meadows is an ideal location for building an
apartment based on the budget available for the entire project.

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4.0 References
Andrić, J.M., Wang, J., Mahamadu, A.M. and Zhong, R., 2019. Understanding environmental
incidents on construction sites in Australia: the causal factors, environmental impact and their
relations. Journal of Civil Engineering and Management, 25(7), pp.617-630.
Australia, 3. (2019). Welcome to GRB Constructions | Abermain Builder, Renovations,
Bathrooms, Decks, Fences, Doors, Stairs, Extensions. [online] Grbconstructions.com.au.
Available at: http://grbconstructions.com.au/our_story.html [Accessed 28 Aug. 2019].
Chileshe, N., Rameezdeen, R., Hosseini, M.R., Lehmann, S. and Udeaja, C., 2016. Analysis of
reverse logistics implementation practices by South Australian construction organisations.
International Journal of Operations & Production Management, 36(3), pp.332-356.
Fan, H., MacGill, I.F. and Sproul, A.B., 2015. Statistical analysis of driving factors of residential
energy demand in the greater Sydney region, Australia. Energy and Buildings, 105, pp.9-25.
Fang, D., Wu, C. and Wu, H., 2015. Impact of the supervisor on worker safety behavior in
construction projects. Journal of Management in Engineering, 31(6), p.04015001.
Hay, A., Zuo, J., Han, S. and Zillante, G., 2017. Lessons Learned from Managing a Remote
Construction Project in Australia. In Proceedings of the 20th International Symposium on
Advancement of Construction Management and Real Estate (pp. 939-948). Springer, Singapore.
Henderson, J., Willis, E., Xiao, L. and Blackman, I., 2017. Missed care in residential aged care in
Australia: an exploratory study. Collegian, 24(5), pp.411-416.
Howlader, M., Masia, M., Griffith, M.C., Ingham, J. and Jordan, B., 2016, November.
Characterisation of Heritage Masonry Construction in NSW-State Heritage Register. In

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Australian Earthquake Engineering Society 2016 Conference, Melbourne, Victoia, Australia (pp.
25-27).
Morris, A., Wilkinson, S., Algeo, C. and Candusso, D., 2016. Measuring project management
maturity in NSW local government. In The Construction, Building and Real Estate Research
Conference of the Royal Institution of Chartered Surveyors. Royal Institution of Chartered
Surveyors.
Park, J. and Tucker, R., 2017. Overcoming barriers to the reuse of construction waste material in
Australia: a review of the literature. International Journal of Construction Management, 17(3),
pp.228-237.
Realestate.com.au (2019). Real Estate, Property & Homes for Sale - realestate.com.au. [online]
Realestate.com.au. Available at: https://www.realestate.com.au/buy [Accessed 28 Aug. 2019].
Rogers, D. and Dufty-Jones, R., 2015. 21st-century Australian housing: New frontiers in the
Asia-Pacific. Housing in 21st-century Australia: People practices and policies, pp.221-236.
Shearer, H., Coiacetto, E., Dodson, J. and Taygfeld, P., 2016. How the structure of the Australian
housing development industry influences climate change adaptation. Housing Studies, 31(7),
pp.809-828.
Warmerdam, A. and Lingard, H., 2017, June. EXAMINING THE DEFINITION OF A
CONSTRUCTION PROJECT IN AUSTRALIA. In Joint CIB W099 & TG59 International
Safety, Health, and People in Construction Conference (p. 242).

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Yen, B.T., Mulley, C., Shearer, H. and Burke, M., 2018. Announcement, construction or
delivery: When does value uplift occur for residential properties? Evidence from the Gold Coast
Light Rail system in Australia. Land use policy, 73, pp.412-422.
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Available at: http://www.yourhome.gov.au/you-begin/construction-process [Accessed 28 Aug.
2019].

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5.0 Appendix 1
Figure 1: Project Timeline
(Source: Created by Author)

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6.0 Appendix 2
Figure 2: Project Feasibility Study
(Source: Created by Author)