Development feasibility is preliminary research carried out prior to the construction of a development project. Valuation assessment of development feasibility consists of various components including gross realisation value, site analysis, highest and best use – physically and legally possible, economically feasible and maximally productive. Feasibility analysis will break down your project into multiple aspects allowing better decision-making processes for property developers.
Certified Practising Valuers from Asia Valuation use software of Estate Master in undertaking valuation assessments for development feasibility purposes. Projects that we undertake include high-rise residential towers, multiple units in-one-line, greenfield development, addition or extension of new commercial buildings over existing site.
What is ‘As if Complete’ Valuation?
The term of ‘As if Complete’ refers to the Gross Realisation Value of a new project upon the completion of construction. Property Valuers will assess a wide range of relevant documents related to proposed construction to determine the Gross Realisation Value. These documents can include building permit, planning permit, building plan, architectural plans and GST margin scheme letter. The building plan will summarize the layout, materials and specifications proposed for the construction project. GST margin scheme letter from accountant is vital in assessing whether GST is reclaimable as part of the valuation assessment.
What is ‘As is’ Valuation?
The term of ‘As is’ refers to the Current Market Value of the existing site, typically denoting the current improved site value prior to the construction. Investors or property developers can determine the value or viability of the projects based on ‘As is’ valuation assessment. Site value can significantly impact the feasibility of the project. Lower cost of land can maximize the potential return or profits of a construction project in development feasibility.
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