DEVELOPMENT APPRAISAL

REPORT
Property Development & Feasibility Analysis

Ujjwal singh
Z5354801
 REST0006 Property Development & Feasibility
Analysis

Assignment No 3 Cover Sheet

Title: REST0006 Assignment 3: Development Appraisal Report

Student Name: Ujjwal Singh

Student Number: z5354801

CHECKLIST (please tick)
✓ Cover sheet
✓ BE Plagiarism Form
✓ Length and format of the report: 10 pages/2800 words max. (excluding the list of
references),Times New Roman or Arial font, 12-point, 1.5 spacing

ASSESSMENT CRITERIA:

Criteria Mark Value

Executive Summary 10%
A clear and concise overview of the main points/ key
findings of the report
Enable reader to make a decision based on reading the
executive summary

Market Analysis 25%

Macro and microeconomic market analysis; apartment
and retail sale prices of recent comparable projects,
comparable development site sales; local competition;
SWOT analysis
Hypothetical Development Approach 25%
Discussion on gross and net realisation values; profit
margin, development costs and interest, land acquisition
costs, GST liability and reclaims; residual land value
DCF Model 25%
Discussion on: cashflow (outflows and inflows) over the
entire development time frame (gross and net realisation,
land costs, development costs, finance cost), GST
liabilities and reclaims; profit margin, IRR, NPV,
sensitivity analysis
References and presentation 15%
Referencing, figures, tables, sketch plans, report structure
(cover page, contents page, executive summary,
introduction, main body, conclusions, list of references,
appendices), proofreading

TOTAL MARK /100

 THE UNIVERSITY OF NEW SOUTH WALES
Built Environment

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Z5354801 Ujjwal Singh

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REST0006 Property Development & Feasibility Analysis

Course ID Course Name

Term 2, 2023 Development Appraisal Report

Term & Year Title of the Assessment Task to which this Declaration applies

Terrence Chau

Lecturer

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Contents
Executive Summary: ................................................................................................................................ 5
Market Research and Analysis ................................................................................................................ 5
Site Overview ...................................................................................................................................... 5
Market Analysis: ...................................................................................................................................... 6
Macroeconomic Market Analysis ........................................................................................................ 6
Australia GDP: ................................................................................................................................. 6
Employment Growth and Unemployment...................................................................................... 7
Population Growth: ......................................................................................................................... 7
Economic Growth Forecast: ............................................................................................................ 8
Microeconomic Market Analysis ......................................................................................................... 8
Market Activity: ............................................................................................................................... 8
Population, household, and dwellings: ........................................................................................... 9
Age structure:.................................................................................................................................. 9
Household types: ............................................................................................................................ 9
Preferred Dwelling: ....................................................................................................................... 10
SWOT Analysis (CONNECTING PLACES, SPACES, PEOPLE AND NATURE OPEN SPACE DIRECTIONS
AND STRATEGIES REPORT CAMPBELLTOWN, 2012) .......................................................................... 10
Strength:........................................................................................................................................ 10
Weakness: ..................................................................................................................................... 10
Opportunities: ............................................................................................................................... 10
Threats: ......................................................................................................................................... 10
Planning Control.................................................................................................................................... 11
Zoning Of the Proposed Site: ............................................................................................................ 11
Set back: ............................................................................................................................................ 11
Access and parking for cars: .............................................................................................................. 11
Maximum Building Height: ............................................................................................................... 11
Floor-Space Ratio: ............................................................................................................................. 11
SEPP 65:............................................................................................................................................. 11
Apartment Design Guide: (Apartment Design Guide Tools for improving the design of residential
apartment development, n.d.).......................................................................................................... 11
Proposed Development ........................................................................................................................ 12
Site area: ........................................................................................................................................... 12
Apartment Mix: ................................................................................................................................. 12
Floor Plans:........................................................................................................................................ 13
Residential Gross Floor Area: ............................................................................................................ 14
 Parking Requirements: ...................................................................................................................... 14
Retail Gross Area: .............................................................................................................................. 14
Density Calculation: .............................................................................................................................. 15
Gross Realisation: .................................................................................................................................. 16
Selling of Apartments:....................................................................................................................... 16
Area Allotted (dwelling): ................................................................................................................... 16
Comparative Range of rate/sqm: ...................................................................................................... 16
Base Schedule: ...................................................................................................................................... 17
Development Parameters: ................................................................................................................ 18
Residual Land Calculation: .................................................................................................................... 19
GST Calculation: ................................................................................................................................ 19
DCF Model:............................................................................................................................................ 20
Sensitivity Analysis: ............................................................................................................................... 21
Conclusion: ............................................................................................................................................ 21
References............................................................................................................................................. 22
Development Appraisal Report
Executive Summary:
This detailed research examines the viability of a mixed-use shop top housing complex at '6-12
Dumaresq St, Campbelltown, NSW 2560.' The report examines the project's compliance with critical
criteria using a comprehensive analysis of planning restrictions such as land zoning, FSR, building
height regulations, unit mix, site coverage, setbacks, and parking requirements. This assessment
takes a systematic approach, comparing each planning control to the project's specifics while linking
relevant regulations from the Local Environmental Plan (LEP), Development Control Plan (DCP), State
Environmental Planning Policy No. 65 (SEPP 65), and the NSW Apartment Design Guide.

The fundamental goals of this study are: to analyse the feasibility of the proposed mixed-use
development and its compliance with key planning restrictions. The study analyses potential hurdles
or deviations that could effect the project's regulatory approval and overall viability by conducting
this assessment. Furthermore, the report includes practical recommendations and revisions aimed at
improving the project's compliance with planning requirements. In conclusion, this study serves as a
thorough guide for stakeholders and decision-makers, providing insights into the project's feasibility
within the regulatory framework, allowing for well-informed assessments about the development's
feasibility.

Market Research and Analysis

Site Overview
The property at '6-12 Dumaresq Street, Campbelltown, NSW 2560,' containing an area of
approximately 1,280 square metres, has been chosen as the planned development site. This site,
designated as Lots 1-11 SP 63212 Dumaresq Street in the 2015 Campbelltown Local Environmental
Plan, is zoned B3 Commercial Core and currently houses a two-story commercial building. The
proposed development, characterised as "shop top housing" and "commercial premises," has valid
development consent and is consistent with the approved land use. The building's height is 45
metres. (NSW Government, 2019), (Detailed planning information, n.d.)

The present two-story commercial building will be demolished to make room for a 15-story mixed-
use complex (Detailed planning information, n.d.), according to the planned development plan. The
proposed structure has various levels, including four basement levels largely intended for parking,
ground-level retail and commercial areas, and 11-story residential apartments. The development's
rooftop features a smartly designed public open space with accessible amenities, play areas, and
recreational facilities.

The land is strategically located within Campbelltown Regional City Centre's bustling business zone,
with a frontage of 26.37 metres along Dumaresq Street and close to a 10-meter wide dirt laneway
used as public parking by the council. It is approximately 400 metres from the south-east entrance of
the local station. The Campbelltown Post Office to the south and the Dumaresq Street Cinema to the
north-west are notable nearby sites.

The development is accessible via pedestrian entrances on both Dumaresq Street and the
neighbouring unauthorised laneway. Vehicle access will be mostly via the same laneway, with
existing parking spaces removed to improve development accessibility. The proposal also emphasises
the importance of retaining pedestrian connectivity between the subject site and Lot 101 DP 621693,
which houses the movie theatre building. It is vital to notice that the development does not include
any suggested stratification.

The unique characteristics of the site, the planned development's combination of commercial, retail,
and residential spaces, and its compliance with existing planning rules all contribute to the project's
viability within the Campbelltown urban context.

Market Analysis:
Macroeconomic Market Analysis
Australia GDP:

Figure 1 Warner, Q-1 2023, p-2

Australia's GDP trajectory navigates complexity amid global uncertainty caused by US and global
bank collapses. While major countries are in recession, Australia's growth deceleration is being
supported by recovering migration, tourism, and healthy commodities exports. Despite a decreasing
GDP due to domestic consumer pressures and dwindling investment, a healthy labour market
provides stability to the housing sector. The Reserve Bank of Australia's pause in rate hikes after ten
straight increases provides relief to households and housing demand, but concerns remain about the
end of the interest rate cycle with elevated CPI growth and rising dwelling prices. Against this
backdrop, Australia's GDP increased by 0.5% in Q4 2022, with exports offsetting the slowdown,
establishing a complex economic landscape. (Warner, Q1 2023, p-2)
Employment Growth and Unemployment

Figure 2 (Warner, Q1 2023, p-2)

The epidemic has caused large swings in annual job growth in Australia in recent years, punctuating
an underlying tendency of resilience. Despite the turbulent economic environment, total
employment increased by 3.4% in 2022, equivalent to 452,000 people. This astonishing increase fits
into the larger story of Australia's solid economic recovery. Furthermore, the amazing durability
extends to unemployment data, which remain astonishingly low at 3.5%, demonstrating the labour
market's fundamental strength even in the face of global worries such as the US and worldwide bank
collapses, which have reverberated in 2023. This dynamic combination of strong employment growth
and low unemployment highlights the underpinnings of Australia's economic canvas. (Warner, Q1
2023, p-2)

Population Growth:

Figure 3 Annual Population change (Source: ABS, Dec-2022)

The landscape of population increase in Australia is defined by statistical insights known as Estimated
Resident Population (ERP). Australia's population was 26,268,359 people as of December 31, 2022.
Notably, the quarter saw a 127,078 person rise, representing a 0.5% gain. Over the course of the
year, Australia's population increased by 496,800 individuals, representing a 1.9% annual growth
rate. This expansion is driven by a combination of sources, with annual natural growth accounting for
109,800 persons and nett foreign migration accounting for 387,000. (www.abs.gov.au, 2023)

Economic Growth Forecast:

Figure 4 Source: ABS, Dec-2022

Forecasts for economic growth shed light on the trajectory of Australia's Gross State Product (GSP)
throughout its states. While Victoria and New South Wales (NSW) experienced the brunt of COVID's
impact, their strong resurgence in 2021 has carried over into 2022 with border reopening. However,
a noticeable trend develops as growth in all states, including Victoria and New South Wales, now
slows. This pattern represents a rebalancing to more moderate levels, affected by the advent of cost-
of-living pressures, which have begun to slow the speed of economic activity. The developing
economic environment across Australia's states is shaped by the dynamic interaction of recovery,
moderation, and the influence of foreign factors. (Warner, Q1 2023, p-2)

Microeconomic Market Analysis

Market Activity:
• The number of units under construction has slightly grown, as more projects have begun
than have been completed.
• After dropping in 2022 due to increased interest rates, apartment sales have stabilised in
2023.
• The median price of an apartment has fluctuated, rising by 1.2% in April yet remaining 7.2%
lower over the previous year.
• Rental vacancy rates have dropped dramatically, from a pandemic high of 4.3% to 1.3% in
March 2023.
 • Over the last year, gross apartment yields have increased due to dropping capital values and
rising rentals.

Figure 5 Source : warner, q-1 2023, p10

Despite probable future issues for the broader property market, there has been a noticeable shift in
perception towards Sydney's apartment market. Emerging data strongly suggest that the worst
period of the apartment market has passed, with obvious signs of a quick transition to recovery and
the next cycle. This upward trend highlights the market's resiliency and bodes well for a revitalised
phase ahead. (Warner, Q1 2023, p-2)

Population, household, and dwellings:

The overall population of Campbelltown City Council is expected to be 177,725 persons in 2021. It is
anticipated to grow by over 53,805 people to 231,530 by 2031, at a 2.68% annual growth rate.
(forecast.id.com.au, n.d.)

The number of dwellings in Campbelltown City Council is expected to increase from 63,063 in 2021
to 98,221 in 2041, with the average household size reducing from 2.93 to 2.89 by 2041.
(forecast.id.com.au, n.d.)

Age structure:
Campbelltown City Council's age structure estimates show a 30.3% increase in population under
working age, a 33.0% increase in population of retirement age, and a 29.7% growth in population of
working age between 2021 and 2031. (forecast.id.com.au, n.d.)

Household types:
Couple families with dependents were the most common household type in Campbelltown City
Council in 2021, accounting for 38.3% of all households.

Couple families with dependents are expected to grow the most between 2021 and 2031, increasing
by 6,931 households and accounting for 38.1% of all households.

In contrast, Group households are expected to grow by 468 households, accounting for 2.3% of all
families in 2031, up from 2.3% in 2021. (forecast.id.com.au, n.d.)
Preferred Dwelling:

Figure 6 Source: (Campbelltown Local Housing Strategy, n.d.)

The number of bedrooms connected with each house type is shown here. This viewpoint helps to
explain the Campbelltown LGA's high representation of separate houses, which are also more likely
to be larger than other dwelling types (83% are three or four bedroom). It also reveals an
overrepresentation in two-bedroom apartments (65%). (Campbelltown Local Housing Strategy, n.d.)

SWOT Analysis (CONNECTING PLACES, SPACES, PEOPLE AND NATURE OPEN SPACE
DIRECTIONS AND STRATEGIES REPORT CAMPBELLTOWN, 2012)
Strength:
• Close proximity to major markets, particularly Greater Sydney
• Access to major road and rail networks is excellent.
• Campbelltown Arts Centre is a large regional gallery with an active exhibition and performance
schedule.

Weakness:
• There is no nighttime economy and just little family-friendly evening entertainment.
• Campbelltown Arts Centre, a small-scale performing arts venue, requires upgradation.
• A number of sportsfields, recreation parks, and outdoor courts require upgrades (e.g.,
deteriorating structure and facility quality).

Opportunities:
• Address the gaps in open space supply by acquiring some land and/or improving existing parks
and reserves where capacity is restricted.
• Improve access to and utilisation of key facilities and tourism attractions, such as Lochiel Park
Golf at Geoff Heath Par 3 Golf Course, Campbelltown Leisure Centre, 'Flavours of Campbelltown
Food Trail,' Conservation Parks, Lochiel Park, and so on.

Threats:
• Climate change, drought, and water restrictions pose a significant danger to local government.
• Local government faces a continual threat from resource constraints as well as increased
responsibilities and costs.
Planning Control
Zoning Of the Proposed Site:
The subject land is classified B3 Commercial Core, according to the Campbelltown Local
Environmental Plan 2015 (CLEP 2015). The proposed complex has a commercial component in
addition to shop top housing.

The proposed development meets the following standards because it has development consent in
the B3 Commercial Core zone.

Set back:
• Zero metres from any street boundary.
• Any residential component of the building must be at least 6 metres from any other boundary.

Access and parking for cars:

• For all commercial/retail parts of the building, in addition to residential car parking rates (section
5.5.4), there shall be one (1) car parking space per 25sqm of leasable floor space on the ground
level and one (1) car parking space per 35sqm of floor space on the upper floors.
• Commercial/retail uses must be separated from pedestrian access to residential flats.
• In accordance with Part 6.4.2 of this Plan, the development shall provide ample parking, loading,
and unloading space for all delivery and service vehicles.

Maximum Building Height:

Maximum height permitted by CDCP 2015 is 45m.

Floor-Space Ratio:
The total FSR shall not exceed 2.2:1.

SEPP 65:
The construction of the apartment building is subject to SEPP 65. According to SEPP 65's clause
28(2)(b), the consent authority must examine the development's design quality while assessing it in
accordance with the design quality principles. Nine design quality guidelines Context and
neighbourhood character, Built form and scale, Density, Sustainability, Landscape, Amenity, Safety,
Housing Diversity and Social Interaction, and Aesthetics are applied to the creation of residential flat
as listed in Schedule 1 of the SEPP according to Environmental Planning and Assessment Regulation
2000 Section 50(1AB).

Apartment Design Guide: (Apartment Design Guide Tools for improving the design of
residential apartment development, n.d.)
It dives into site selection, emphasising how to match with the immediate context, neighbouring
properties, and high-quality open areas in order to improve residential amenities and evaluate
development proposals. The guidance also emphasises the significance of design review panels,
which are governed by councils, in evaluating development stages to maintain consistent design
quality. The inclusion of specific design considerations such as BASIX compliance, ADG natural
ventilation, and the integration of energy-efficient elements such as glazing and shading devices, as
well as waste management and accessibility features, further enhances the Apartment Design
Guide's comprehensive nature, making it an essential framework for achieving exceptional design
outcomes in residential apartment developments.
Proposed Development
Site area:
6,791 square metres in size.

Apartment Mix:
Number Size Size
Apartment
Proposed (Internal) (Blacony)

Studio 10 40sqm 17sqm

1 bedroom 20 53sqm 32sqm
2
54 85sqm 33sqm
bedrooms
3
4 115sqm 45sqm
bedrooms
Shops 10 60sqm -
Basements 4 4650sqm -
Floor Plans:

Figure 8 Basement-2,3,4 Figure 7 Basement-1

Figure 10 1BHK
Figure 9 Studio

Figure 12 2BHK Figure 11 3BHK

Residential Gross Floor Area:

Floor Area(sqm)
Basement-1 850
Basement-2,3,4 2850
GF 850
1st Floor 850
2nd flor 850
3rd floor 850
4th 850
5th 850
6th 850
7th 850
8th 850
9th 850
10th 850
11th 532
Total 13582

Parking Requirements:

Use Car Parking Spaces

Residential 88
Residential visitor 10
Commericial 28
Retail 0

Retail Gross Area:

Shops area is 600sqm (10*60)
Density Calculation:
Planning Control
Site Area 6791 sqm
Height Limit 45 m
Per floor Height 3 m
Permitted floors (incl GF) 12 nos
FSR 2.2:1
Planning Result
Retail Shop GFA 600 sqm
Building permitted GFA 14940.2 sqm
Building Efficiency 80%
Actual GFA 11952.16 sqm
Per Floor GFA 680 sqm
Building Mixed ratio
Area unit %Mix Weightage per floor
Studio 57 10% 5.7
1BHK 85 20% 17
2BHK 118 60% 70.8
3BHK 160 10% 16
Total 100% 109.5
Apartment Yield
overall studio 1bhk 2bhk 3bhk
Per Floor GFA 680
Weightage Per Floor 109.5
Weightage of Apaprtements 6.210046 0.621004566 1.242009132 3.726027397 0.621004566
Rounded off (weightage) 6 1 1 4 1
total over 12 floors 72 12 12 48 12
Total Floor area 7884
Expected Sale Prices
studio 1 BHK 2BHK 3BHK Weighted Avg
Rate/sqm $14,300.00 $15,850.00 $16,950.00 $18,900.00 $16,926.21
Price $8,15,100.00 $13,47,250.00 $20,00,100.00 $30,24,000.00 $18,53,420.00

Total Studio 10 $8,15,100.00 $81,51,000.00

Total 1BHK 20 $13,47,250.00 $2,69,45,000.00
Total 2BHK 54 $20,00,100.00 $10,80,05,400.00
Total 3BHK 4 $30,24,000.00 $1,20,96,000.00
Total Gross Ralisation Expected 88 $15,51,97,400.00
Total Gross Ralisation Expected 88 $18,53,420.00 $16,31,00,960.00
Total Gross Ralisation Expected 7884 $16,926.21 $13,34,46,240.00
Gross Realisation:
Selling of Apartments:
Type Numbers Per unit Price Total Cost
Studio 10 $8,15,100.0 $81,51,000.0
1BHK 20 $13,47,250.0 $2,69,45,000.0
2BHK 54 $20,00,100.0 $10,80,05,400.0
3BHK 4 $30,24,000.0 $1,20,96,000.0
Shops 10 $7,00,000.0 $70,00,000.0
Total 98 $16,21,97,400.0
Avg unit selling price $16,55,075.51

Area Allotted (dwelling):

Number Size Size Total
Apartment
Proposed (Internal) (Blacony) Area
Studio 10 40sqm 17sqm 570
1 bedroom 20 53sqm 32sqm 1700
2
54 85sqm 33sqm
bedrooms 6372
3
4 115sqm 45sqm
bedrooms 640
Shops 10 60sqm - 600
Total - 9882

Comparative Range of rate/sqm:

Type Low Medium High Avg
Studio 12500 14900 15500 14300
1BHK 13500 16700 17500 15850
2BHK 15500 16850 18500 16950
3BHK 17500 18700 20500 18900
Base Schedule:
Task Duration
Pre-construction Period 3 months
Obtain Development Approval (DA) 2 weeks
Land Acquisition 1 week
Obtain Construction Certificate 4 weeks
Design Development 8 weeks
Prepare Tender Documents 2 weeks
Tendering and Award of Contract 3 weeks
Construction Period 52 weeks
Demolition 2 weeks
Site Establishment 2 weeks
Prefabricated Construction 32 weeks
Contingency 4 weeks
Marketing & Pre-sales 8 weeks
Compliance Certification 2 weeks
Occupation Permit 1 week
Strata Plan & Title Registration 8 weeks
Post-construction Period 24 weeks
Sales 16 weeks
Settlement 8 weeks
Development Parameters:
Development cost Input
Site Area 6791 sqm
Gross Realisation $16,31,00,960.00
Number of Dwellings 88
Selling Cost
Agents Commission 2%
Leagal fee (Sale) $1000 per unit
GST Liabilty on Sales - Margin Scheme 5.94%
Retail Selling Price Per Sqm $19000 per sqm
Developer Profit and risk 20%
Development Costs
Promotion and Marketing Cost $1000 per unit
Developer Contributions Per Unit $8500
DA & CC Statutory Costs $20000
Loan Approvals $100
Professional Fees $65000
Landscaping $1000 per unit
Rates & Taxes $10000 per annum
Main Building Area 9882 sqm
Construction Costs - Main Building $4250 per sqm
Construction Costs - Shops $40000
Construction Costs - Parking $2500
Demolition Area 6300 sqm
Demolition cost per sqm $95 per sqm
Demolition $598500
Add Inflation on Development costs 2.50% 6 month
Less Interest on development cost
Development / Construction Period 12 months
Selling Period 6 months
Draw Down Factor 50%
Interest on Construction 6% per annum
Less interest on land and acquisition cost
Interest on Land 5% per annum
Stamp Duty on Purchase 6.39%
Legals on Purchase $7500
 Residual Land Calculation:
Gross Realisation $16,31,00,960

Less Selling Costs

· GST Liability Estimate 5.94% $96,88,197

· Agents Commission 2.00% $32,62,019
· Legals on Sale Units 88 Rate $1000 $88,000
$1,30,38,216

Net Realisation $15,00,62,744

Less Profit & Risk $15,00,62,744 20% $2,50,10,457 $12,50,52,286

120%
Less Development Costs

· Section 94 Contributions Units 88 Rate $8,500 $7,48,000

· Demolition $598500
· DA & CC Approvals $20000
· Loan Approvals $100
· Professional Fees $65000
· Promotion & Marketing Units 88 Rate $1,000 $88,000
· Landscaping Units 88 Rate $1,000 $88,000
· Rates & Taxes TERM 15 Rate $10000 $12,500
· Construction Units Area 9,882 Rate $4250 $4,19,98,500
· Parking Units 88 Rate $2500 $2,20,000
$4,31,55,000

Sub Total $8,18,97,286

Less Interest on Development Cost
(50% of Construction Period & 50% of Selling Period)
Interest Rate 6.00% $ 19,41,975 $7,99,55,311
Construction Period (months) 12 9 months
Selling Period (months) 6

Less Interest on Land & Acquisition Costs

Interest Rate 5.00% $7,99,55,311 6.25% $47,03,254 $7,52,52,058

Holding Period (months) 15 106.25%
6.25%
Less Acquisition Costs (Legals) $7,500 $7,52,44,558
Less Stamp Duty
Stamp Duty Rate 6.39% $7,52,44,558 6.39% $ 45,19,341 $7,07,25,217
106.39%

RESIDUAL LAND VALUE $7,07,25,217

ADOPT 7,07,25,000
% of GROSS REALISATION 43.4%
VALUE PER UNIT SITE EQUATES TO $8,03,696
ADOPT $8,04,000
VALUE RATE M/2 SITE AREA $10,415

GST Calculation:
GST Margin $16,31,00,960
SITE COST $ 7,07,25,217
MARGIN $9,23,75,743
GST $83,97,795
GST % 5.15%
 DCF Model:
0 1 2 3 4 5 6 7 8 9 10 11 12 13
TOTALS Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24
GROSS REALISATION $16,21,97,400 $16,21,97,400 - - - - - - - - - 7,94,43,624 4,96,52,265 3,31,01,510 - -
SALES PER PERIOD 98 0 0 0 0 0 0 0 0 0 48 30 20 0 0
GST TAX LIABILITY 5.17% 83,79,940 0 0 0 0 0 0 0 0 0 41,04,461 25,65,288 17,10,192 0 0
LESS SELLING COSTS 48,65,922 0 0 0 0 0 0 0 0 0 23,83,309 14,89,568 9,93,045 0 0
NET REALISATION 14,89,51,538 - - - - - - - - - 7,29,55,855 4,55,97,410 3,03,98,273 - -

DEVELOPMENT COSTS

LAND VALUE / PURCHASE PRICE 7,00,17,965 63,65,270 6,36,52,695 0 0 0 0 0 0 0 0 0 0 0 0

STAMP DUTY 45,19,341 0 45,19,341 0 0 0 0 0 0 0 0 0 0 0 0
LEGALS 7,000 0 7,000 0 0 0 0 0 0 0 0 0 0 0 0
COUNCIL FEES 25,000 0 25,000 0 0 0 0 0 0 0 0 0 0 0 0
STATUTORY HOLDING COSTS 8,000 0 0 2,000 0 0 4,000 0 0 2,000 0 0 0 0 0
MARKETING COSTS 20,000 0 0 0 4,000 4,000 4,000 4,000 4,000 0 0 0 0 0 0
PROFESSIONAL FEES 810987 8,10,987 0 3,24,395 0 0 1,21,648 1,21,648 1,21,648 1,21,648 0 0 0 0 0 0
SECTION 94 CONTRIBUTIONS 8,10,987 0 8,10,987 0 0 0 0 0 0 0 0 0 0 0 0
FINANCE APPROVAL COSTS AND FEES 8,500 0 8,500 0 0 0 0 0 0 0 0 0 0 0 0
CONSTRUCTION COSTS 4,19,98,500 0 0 62,99,775 62,99,775 83,99,700 62,99,775 62,99,775 41,99,850 41,99,850 0 0 0 0 0
CONTINGENCIES ON CONSTRUCTION 5.0% 20,99,925 0 0 3,14,989 3,14,989 4,19,985 3,14,989 3,14,989 2,09,993 2,09,993 0 0 0 0 0
SURVEY & STRATA SURVEY 15,000 0 6,000 0 0 0 0 0 0 9,000 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

GST TAX CREDIT 10.0% -45,28,849 0 0 -30,672 -6,01,342 -6,01,706 -8,13,212 -6,12,765 -6,12,765 -4,12,317 -4,01,713 -2,16,664 -1,35,415 -90,277 0

TOTAL COSTS 11,58,12,356 63,65,270 6,93,53,918 65,86,091 60,17,422 83,43,627 59,31,200 61,27,647 39,22,726 40,08,525 (4,01,713) (2,16,664) (1,35,415) (90,277) -
DEVELOPERS EQUITY CONTRIBUTION - 0 0 0 0 0 0 0 0 0 0 0 0 0 0
MONTHLY CASH FLOW 3,31,39,181 (63,65,270) (6,93,53,918) (65,86,091) (60,17,422) (83,43,627) (59,31,200) (61,27,647) (39,22,726) (40,08,525) 7,33,57,568 4,58,14,074 3,05,33,688 90,277 -
INTEREST 8.00% (57,26,898) - (42,435) (5,05,077) (5,52,352) (5,96,150) (6,55,749) (6,99,662) (7,45,177) (7,76,297) (8,08,196) (3,24,533) (21,269) - -
CASH FLOW AFTER - INTEREST 2,74,12,284 (63,65,270) (6,93,96,353) (70,91,169) (65,69,774) (89,39,778) (65,86,949) (68,27,309) (46,67,903) (47,84,822) 7,25,49,373 4,54,89,541 3,05,12,419 90,277 -
CUMULATIVE (63,65,270) (7,57,61,623) (8,28,52,792) (8,94,22,565) (9,83,62,343) (10,49,49,292) (11,17,76,601) (11,64,44,504) (12,12,29,326) (4,86,79,953) (31,90,412) 2,73,22,007 2,74,12,284 -

ASSUMPTIONS PROFIT ANALYSIS AFTER EQUITY ANNUALISED RETURN GST ASSESSMENT - MARGIN SCHEME
AVERAGE SELLING PRICE PER UNIT $ 16,55,076 PROFIT AFTER INTEREST $ 2,74,12,284 $ 2,74,12,284
TOTAL UNITS+SHOPS 98 PROFIT MARGIN - EXCLUDING INTEREST 23.67% 23.67% GROSS REALISATION $ 16,21,97,400
SELLING COSTS P/UNIT - COMMISSION $ 41,377 2.50% - INCLUDING INTEREST 22.55% 22.55%
- LEGALS $ 8,275 0.50% INTERNAL RATE OF RETURN MONTHLY NOMINAL EFFECTIVE PURCHASE PRICE/VALUE 1 JULY 2000 $ 7,00,17,965
TOTAL SELLING COSTS PER UNIT $ 49,652 3.00% - BEFORE INTEREST 3.37% 40.41% 48.80%
DEVELOPERS EQUITY - AFTER INTEREST 2.78% 33.37% 38.98% AMOUNT OF MARGIN SUBJECT TO GST $ 9,21,79,435
NET PRESENT VALUE
Discount Rate 28.55% NPV 3410762
PROJECT START DATE August-23 MAXIMUM EXPOSURE BREAKEVEN PERIOD
PRE CONSTRUCTION PERIOD 2 MTHS $ (12,12,29,326) 11 mths GST PAYABLE @ 9.09% 83,79,940
ESTIMATED CONSTRUCTION PERIOD 7 MTHS EFFECTIVE GST PAYABLE 5.17% OF GROSS REALISATION
ESTIMATED SELLING PERIOD 3 MTHS PROFIT PER UNIT AS A % OF AVE SALE PER UNIT
TOTAL PROJECT PERIOD 12 MTHS $ 2,79,717 16.90%
CONSTRUCTION COSTS $4,19,98,500 EXPOSURE / NET REALISATION 81.39%
TOTAL PROJECT COSTS $11,58,12,356 LAND COST / GROSS REALISATION 43.17%
TOTAL PROJECT COSTS (INCL INTEREST) $12,15,39,254 CONSTRUCTION COST / GROSS REALISATION 25.89%
ANNUAL INTEREST - NOMINAL/EFFECTIVE 6.00% 6.17% GST LIABILITY $ 83,79,940
MONTHLY- NOMINAL / EFFECTIVE 0.50% 0.51% AVERAGE PER UNIT $ 85,510
NUMBER OF RESTS 12
DISCOUNT RATE NPV 28.55%

Figure 13 Cashflow
Sensitivity Analysis:
Sensitivity Analysis
Sensitivity Analysis with +/- 10% Deviation

Performance Indicator
Original Profit Margin 22.55% Development Costs 11,58,12,356
Original Profit After Interest $ 2,74,12,284 (based on Cashflow)
Project NPV $34,10,762 Gross Realisation $16,21,97,400
Project IRR (Nominal) 8.34%

RESULTS
Base Cap (0%) Original - 10%
Variables Original Value Revised Value (Profit Margin %) (% Change) IRR
Land Cost $7,07,25,217 $2,70,34,545 38.67% 2.45% 51.55%
Construction Cost 14,89,51,538 $13,40,56,384 44.02% 7.81% 56.91%
Estimated Gross Realisation $16,21,97,400 $14,59,77,660 23.23% -12.98% 35.34%
Sernior Interest Rate 9800.00% 8820.00% 39.18% 2.97% 52.06%

RESULTS
Base Cap (0%) Original + 10%
Variables Original Value Revised Value (Profit Margin %) (% Change) IRR
Land Cost $7,07,25,217 $7,77,97,738 28.55% -6.62% 41.03%
Construction Cost 4,19,98,500 $4,61,98,350 31.61% -4.60% 45.82%
Estimated Gross Realisation $16,21,97,400 $17,84,17,140 49.17% 12.95% 66.25%
Sernior Interest Rate 6.00% 6.60% 35.73% -0.49% 50.56%

Figure 14 Sensitivity Analsis

Conclusion:
The strategic choice of Campbelltown suburb for the projected property development has substantial
promise, owing to the area's emerging commercial growth potential and growing demand for
dwellings. The distinctive features of this site, such as its three frontages and potential for the
creation of 50 apartments under the banner of shop top housing, position it to capitalise on the
changing real estate landscape. Extensive macroeconomic and microeconomic evaluations
undertaken during the COVID-19 pandemic highlight the favourable environment, which is
characterised by a fall in vacancy rates and an increase in demand in the residential sector, making
the present a favourable time to begin construction.

The financial assessment backs up this forecast, demonstrating a strong fiscal position. With an
outflow investment of $115,812,356 and an inflow gross realisation of $162,197,400, the projected
profit margin, including interest, is a whopping 22.55 percent. A prudently assessed land value of
$70,725,217 is expected to ensure a healthy profit margin. Furthermore, this development's
potential extends to the rising demand for both residential and commercial properties in
Campbelltown, with a projected profit of 23.23 percent and an Internal Rate of Return (IRR) of 35.34
percent.

A rigors sensitivity analysis emphasises the importance of effectively managing land and building
costs, emphasising their critical role in generating considerable profits. Notably, while the land cost,
construction cost, and estimated gross realisation all saw significant negative impacts following the
deviation, the senior interest rate remained reasonably consistent. In summary, the combination of
favourable economic indicators, strategic location, and strong financial prospects makes this property
development a tempting proposal with the potential to deliver significant profits.
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