Project Life Cycle

FS
(Make sure the
project bring
profit)

Planning
Completion,
Operation & Design Permission
Maintenance
Building Plan

Pejabat Tanah
Jabatan
Construction Statutory
Penerangan
Management Approval (PBT)
Jabatan
Bangunan
Jabatan
Kejuruteraan
Procurement
Jabatan
Management Marketing and Teknikal
(Tender Start, find Sales
reputable main (APTL)
con, sub con)
Feasibility Study Checklist

Level 1 : Rule of Thumb To identify the number of development without

Stepping on Site
1-acre Land (Football Field)
GDV: 100% Commented [CSH1]: Total Selling Unit (Gross
12 units of link house/ shop lots Development Value)

TCC: 40% - 50% 8 units of Semi-D Commented [CSH2]: Total Construction Cost - Exclude
Land Cost, if more than 40% - 50% normally will make loss

Land Cost: 20%-30% 4-6 units Bungalow

60-80 units Condo

Profit: 20% - 30%

*If > 10 acres of Residential land, 30% of the total units need to allocate for
Medium Cost or Low Cost

*In reality, Developer will hold the development, within 2 years, they will go to
Majlis Pembandaran said that no people or minimum amount of people want to
buy the land, then the government will take back the consent and release the
house to open market.

Level 2: Basic Data Study Estate Agent, Owner of Land, Other

*The data should have in Land Proposal

1. Land Size
2. Tenure (Freehold or Leasehold)
3. Location Map
4. Land Gradient (Flat or Narrow)
5. Accessibility & Infrastructure (Where the land is located, easy to
access? Existing infrastructure? Or Create New?)
6. Surrounding (Township)
7. Distance to Amenities University, School, etc. (if satisfied with the
proposed land, then proceed to L3)

Level 3: Site Visit Checklist

1. Accessibility (Check)
a. Traffic flow
b. Legal Access (Planning Department and Land Office)
2. Project Showroom Nearby (Check their price, concept, demand, who is
the investor or buyer, how many units left)
 3. Position of the Sun
a. Facing West difficult to sell
i. *First Phase Test Market at cheaper price
b. Prefer North and South
4. Terrain (Kementerian Sumber Asli dan Alam Sekitar)
a. Class I Easy to reach, walk, climb
b. Class II Easy to reach, walk, climb
c. Class III Hard to reach, walk, climb
d. Class IV Hard to reach, walk, climb Commented [CSH3]: If Class 3, Class 4 need get
approval from EIA

5. Infrastructure
a. Check existing water supply electricity and Drainage Commented [CSH4]: If dont have will affect your cost

6. Soil Condition Commented [CSH5]: Meet your proposed development?

Check at Local Authority, they know the soil type suitable
a. Rock for which development
b. Clay
c. Lime
7. High Tension Cable Commented [CSH6]: If nearby, maybe can do Recreation
Place
8. Graveyard/ Cemetery

Level 4: Local Government (Planning Department Majlis Bandaraya, Majlis

Pembandaran, Majlis Daerah)

1. Zoning Commented [CSH7]: The land use

2. Density Max number of units per acre

3. Plot Ratio Max allowed built floor area per acre
4. Height Control Safety of the flight path. Commented [CSH8]: Near Airport

5. Set back Distance of building from the road and building

6. Carpark requirement
7. Government charge planning fee

Infrastructure and Engineering Department

a. Land Clearing Earthwork permit

b. JKR road and traffic light
c. Indah Water Kosertean (IWK)
d. Jabatan Pengairan dan Saliran
e. TNB
f. Syabas

Level 5: Land Office

1. Ownership
 2. Status of Land
3. Government Acquicition
4. Caveat
5. Charges (Check have charge with bank or not, cost for land conversion)

Level 6: Jabatan Ukur Dan Pemetaan Malaysia (JUPEM) Commented [CSH9]: Reason Visit:
To know the exact shape, so that the developer can allocate
1. Obtain information of Size, Shape, Dimension and Surrounding and design the exact concept

2. 100% accurate

Level 7: Market Study

1. Demographic Commented [CSH10]: Income level, population, working

sector, income level, etc.
2. Sales speed
Commented [CSH11]: Where buyer come from
a. Where buyer come from
b. Study possible trend of sales for proposed development and it is
easy to forecast manage cash flow.
3. List its nearby development
a. Price
b. Type
c. Demographic
4. Market Transacted price to know the actual price paid Commented [CSH12]: Check from NAPIC, actual price
paid by the buyer who live in this locality
Level 8: Frequent Site Visit To make sure the development meets the demand
Commented [CSH13]: Check Traffic Flow at different
Level 9: Layout Planning time, different day.
Check is there activity that will block your access, ex: pasar
malam, etc.
- Engaged Architect
Commented [CSH14]: Proper layout planning
o Draw the proposed building Engaged Architect to draw on how to allocated the layout
o Draw the position of TNB plan, etc to comply with the law.

o The allocation of Plinth area, Parking, Amenities, Landscaping

(Jabatan Perancangan Bandar dan Desa)

Level 10: Financial Analysis

- Determine either the land is going deliver Profit/ Loss

Cashflow Projection

1. Inflow Commented [CSH15]: Forecast when the buyer will

occupy your property, based on neighbourhood.
a. What is our project sales revenue and when do they occur?
2. Outflow Commented [CSH16]: Period-by-Period Method, see
what period allocate what activities and cost. Ex: Initial
a. At what stage do we incur the following work? Stage, Development Stage, Completion Stage.
 i. Pilling
ii. Building Construction
iii. Infrastructure
iv. Statutory Application and Compliances
v. Sales and Marketing
vi. Professional Fee
vii. Show House unit and Other Cost
3. Land Cost Outflow
a. At what stage of the project do we fulfil the payment for the
following?
i. Land Cost
ii. Quit Rent and Assessment
iii. Conversion
iv. Legal Fee
v. Stamp Duty Commented [CSH17]: Rule of Thumb, 20-30% of
Landcost from GDV,
4. Financial Inflow 4-5% of Land Cost for Quit Rent, Conversion, Legal Fee,
a. To determine when project can expect some kind of find Stamp Duty.

i. Capital Injection Commented [CSH18]: Maximum 60% of Development

Cost
ii. Term Loan
Commented [CSH19]: Loan for Developer to Purchase
iii. Bridging Loan the Land,
Holding the land still got Land Cost because will set as there
have hypothetical tenant.
Holding Cost occur normally when the Land is Free.
Interest on Capital Actually is the Opportunity Cost for the
buyer that you own.
Commented [CSH20]: Loans that loan from bank to
complete building construction only
Normally for Infrastructure and Building