SRQ764 Building Project Evaluation Report, Deakin University 2018

This report provides a comprehensive evaluation of a property, including its physical, legal, environmental, and psychological characteristics to determine its market value and potential use. The analysis considers the property's current state, potential for redevelopment, and alternative uses, such as maintaining the existing structure or redeveloping it into a mixed-use commercial and residential space. The evaluation employs the sales comparison approach to predict the property's price, considering factors like land size, quality, use, and building area. The report identifies potential buyers as investors seeking rental returns and capital growth, or developers interested in future development opportunities. Assumptions are made regarding the client's intention to retain the site in its current state and the comparability of selected properties. The report concludes with an adjusted market price based on the analysis of comparable properties and market conditions.

CONSTRUCTION MANAGEMENT
By Name
Course
Instructor
Institution
Location
Date

EXECUTIVE SUMMARY
The report analysis utilized both the secondary and the primary data. While collecting the
general information regarding the prices for the sales, population makes up and the demands of
the market, the secondary data were found to be of importance. The collection of the main data
on the site was achieved by physical examination.
Summary of the facts and the conclusions
Address of the property
Property ownership Private
Date of Value 10 Dec 2018
Physical Properties Frontage; 25.54m
Land size:600m2
Legal Characteristics Maximum height of the building:9m
No restriction
Area within the commercial zone
Locational Characteristics It is close to the roads used by the buses and
the trains
Psychological Characteristics High market demand that originates from the
renters
The composition of the buyers includes young
individual families.
Probable use Retail commercial activities

Environmental characteristics Green grass on the site
No hazards related to the environment on the
site.
Probable buyer A developer or an investor
Initial Price transaction Range $2 345000-3423600
Adjustments The possible adjustments to be made to the
land size properties
Adjusted Price and transaction Market price:$2830000
ANALYSIS OF THE PROBLEM AND DEFINATION OF THE VALUE
Evaluation Aim
The main aim of this particular report is to assist in the estimation of the current market value of
the site Mathare On behalf of the client.Apparaently the client is a potential developer who is
interested in utilizing the site. The reports extend to the point of discovering other probable use
of the site for any interested buyer in the future.
Date of Evaluation
Valuation Date: 10 December 2018
Inspection Date: 4 December 2028
Assumption made from the interest of the buyer

The client has categorically maintained that they would like to buy the property as is, for the
purposes of the investment with the aim to have it developed later.
Value Adopted Definition
For the purposes of this particular report, the following market valuation was actually adopted:
The approximated amount for which any asset should exchange on the valuation date between
the willing buyer and the willing seller at arm’s length transactions after proper marketing
wherein the parties had acted with sound mind, prudently and under no duress.
Definition of the interest to be valued
The site to be evaluated is located at Mathare
Analysis of the property and the Specifications of the Alternative Use
This segment of the report examines the property as far as profitability is concerned. This implies
gauging the focal points and impediments of the property to determine the alternative uses that
the property may have which eventually characterizes the estimation of the property.
PHYSICAL PROPERTIES
Description of the site
The study on the site identified two properties
1st property
405 Upper Silver Lake Rd, commercial and privately owned retail space.
2nd Property

This was just a residential are probably described as the areas 1.Most of the residents occupying
the second floor
The identified site under the study is rectangular in shape with the frontage to the highway of
20m and depth of 30m.This translates to approximate land area of 6000m2. The extreme width
site is to some degree level and is bound on the northern side by Super High way and toward the
Upper Silver Lake Rd . There is a laneway running behind the site and the present building
shares a grouping wall with the neighboring business occupancy.
Improvements
Raised nearby is a generous 1989 two story building containing a retail shop on ground floor and
private space just to summarize. This building is moderately all around kept up, anyway has not
been refreshed a significant lot of time. The aggregate building region on location represents
approx. 410m2 of the aggregate land region. The ground floor once in the past suited a managing
an account chamber and there for is developed with triple block walls. As of now it is fitted out
as retail tenure with a Games Studio on the structures facing Upper Silver Lake Rd. There is
likewise an expansive lawn that is as of now utilizes as a car park that houses a little garage and
can hold up to 8 vehicle spaces. This car park is utilized by the two occupancies and can be
gotten to by Wheeler Street. The upper floor includes a proportional 6 room flat which has its
open separate passageway on Longisa Street.
Non-Building Improvement
Non-building enhancements incorporate creased metal limit fencing, solid garage and highway
section or part. The services that are connected to the site are water, gas, sewer and power.

Conclusion
The site contains a couple of useful highlights that will influence the valuation of the site. These
include:
 Two sorts of occupancies (business and private)
 Substantial on location vehicle parking spot at back
 Vast site for neighboring region (useful for advancement)
 Expansion of car wash which would produce passive revenue
LEGAL PROPERTIES
Restriction on the title
The Title was not made accessible. This valuation is along these lines made subject to the land
and Title being unhindered by any encumbrances, pledges, easements or other arranging
confinements which may some way or another unfavorably influence the estimation of the land.
Current Lease
The data with respect to the term of the present leases for this site were not made accessible.
Anyway it very well may be accepted that the property is under three arrangements of leases,
business rent for ground floor retail, upper floor private rent and a rent for the space held by the
Games Video Shop. These would contribute to the income feasible by the property.
Town Planning Constraints

Mathare Council is the mindful expert. The site is right now under the Commercial 1 Zone (C1Z)
plot under Clause 34.01 of the Lake council Planning Scheme as indicated in the Appendix.
Under this provision it expresses that no licenses are required for retail/shop projects and there is
no greatest settable floor limit. The site is too secured by a vehicle stopping overlay. Under
condition 55.03-2 sketching out building statures, it expresses that the greatest building tallness
ought not surpass 9 meters where the site is level and changes of building stature between
existing structures and new structures ought to be graduated.
Political Factors
The administration is presently financing the re-improvement of Newton Rd among others. This
will see the vehicles keep running underneath North Road by pass, emphatically influencing
traffic flow and commotion on Upper Silver Lake Rd near the subject site.
Conclusion
It tends to be inferred that the site can possibly increment from two stories to three stories (9
meters) in stature and is expected to have no title limitations. It can likewise be seen that the re-
advancement of Newton will results to the attractive quality of the subject site as far as decreased
commotion and style.
Environmental Properties
Factors on site
The part is dominatingly clear except for one completely developed palm tree on Longisa Street
side. Other natural attributes nearby couldn't be determined as no ecological reports/overviews
have been led/sought. Hence it is expected that there are no natural dangers on location.

Factors off -site
The site right now abuts the property Upper Silver Lake Rd yet does not at present influence it.
There does not appear to be any social or physical effect of the site onto the more prominent
network. Anyway the site is near a train line (Frankston) and this could affect the site.
PSYCHOLOGICAL CHARACTERISTICS
Locality
Ormond can be named a best in class suburb where numerous more established structures are
being restored or redeveloped. Ormond as of now comprises of a for the most part more youthful
age and families, which can be found in the charts beneath.
The property
The property itself is a 1920's craft deco style assembling that is in sensible condition. The upper
floor overhang has a perspective of North Road yet nothing critical.
At the point when the Ormond train line/station is set to keep running underneath North Street, it
will build the attractive quality of living on North Street close to the station, for example, this
site.

The market
The property market in Ormond currently consists of mostly houses at 43.6% and mostly renters
at 37.1%.
The market for such a special site (its size, and business and private mix) would be high for
financial specialists and designers as it would deliver high rental returns and can possibly be
produced into something more.
Conclusions
The sort of individuals living in Mathare are youthful and additionally families which comprises
with the larger part being leaseholders. The market is commonly enduring for units importance
okay as far as speculation and the Mathare property advertise request is high in examination with
Victoria.
Alternative Use Evaluation and subsequent selection p the probable utility
Alternative possible uses
The elective uses for this site are resolved to be from the past discoveries;
 Keep the site for what it's worth (The site as of now has three wellsprings of pay – business
shop, private unit, Video Shop) – This choice would profit as it would require none or negligible
upgrades and thus no capital to create.

 Redevelop into blended utilization of business shops and private units with a greatest stature
of 9m or three stories. – This choice would profit as it would build the measure of settable
tenures and along these lines rental return and additionally potential site esteem.
Selection of the probable use
Considering that the client had indicated that they would like to momentarily invest in the site
now, this will be considered the most viable use probably. The valuation that has been used
therefore takes the assumption that the site will remain the same.
Prediction of the Price
In this particular section, there is a detailed valuation analysis that is actually based on the
conclusions pertaining to the previous finding for the probable use and serious analysis.
Most Probable buyer
In the research work, it was established that the most probable buyer for this particular site
would be someone in search for an opportunity of the investment in terms of rental return and
capital growth. This is because the site has the potential of development in the near future; it can
as well fit the interest of the developers.
Techniques of Price Prediction
The main objective of this particular section is to front a properly analyzed results normally, the
value considers the property from every one of the conventional methodologies to esteem
investigation - cost, pay, and deals correlation. The three methodologies are interrelated and used
to give an expository procedure to shape a check and parity for an examination in the last
finishes of significant worth.

Anyway the immediate market correlation approach is the most material to this report, and thusly
will be utilized as the valuation technique to foresee showcase estimation of the property.
In setting up this valuation, the accompanying has been led;
Inspection of the subject site and neighborhood
Gathered deals and assessed each of the comparable, and also checked and affirmed every deal
and Rental.
Confirmed and investigated the information and connected the Sales Comparison Approach to
esteem.
Compared the cost per m2 of building zone to give a practically identical gauge go
adjusted the outcomes for contrasts
Comparable properties
The properties that were used for the comparison included size of the land, quality, use and the
building area.

Assumptions
In order to have proper analysis of the results, the following assumptions have been put in place.
The used market comparison is on the basis that the client seeks to retain the site as is
momentarily.
The site under study is unique and as such it was nearly difficult to get the matching property
types. The chosen sample therefore equates comparable locations.
All the transactions of the comparable properties were done at arm’s length.
Applying the above assumption of 50% residential and 33% for the provision of the affordable
housing, the developer would be ready to pay for $67156 while a vendor will actually be