Curtin Business School

School of Economics and Finance

10857 Property Development 300

Semester 1, 2012
Unit study package number:

10857

Mode of study:

Internal

Tuition pattern summary:

Lecture: 1 x 2 Hours Weekly

Laboratory: 1 x 1 Hours Weekly
This unit does not have a fieldwork component.

Credit Value:
Pre-requisite units:

25.0
10828 (v.0) Property Investment Analysis 300 or any previous version
AND
10858 (v.0) Property Market Analysis 200 or any previous version

Co-requisite units:

Nil

Anti-requisite units:

Nil

Result type:

Grade/Mark

Approved incidental fees:

Information about approved incidental fees can be obtained from our website. Visit
fees.curtin.edu.au/incidental_fees.cfm for details.

Unit coordinator:

Name:
Phone:
Email:
Building:
Room:

Daniel Tan
+618 92663759
DG.Tan@cbs.curtin.edu.au
402
412

Teaching Staff:

Name:
Phone:
Email:
Building:
Room:

Daniel Tan
+618 92663759
DG.Tan@cbs.curtin.edu.au
402
412

Administrative contact:

Name:
Phone:
Email:

Lily MacDonald
+618 9266 7756
L.Macdonald@curtin.edu.au

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 1 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance

Acknowledgement of Country
We respectfully acknowledge the Indigenous Elders, custodians, their descendants and kin of this land past and
present.

Syllabus
This unit examines the economics of property development as well as the process itself. We examine just how a
decision to develop a property is made, the stages in the development process and the key actors involved as well as
the role of the planning system. However, the main focus of the unit is on the financial viability of a development project.
Students will use a variety of models to assess viability, measure risk and then recommend development options to
clients

Introduction
Introduction
Welcome to Property Development 300
The aims of this unit are to:
1. Learn about key players and processes within property development industry
2. Identify and understand information sources and analysis techniques for the evaluation of property development
projects
3. Develop and use computer skills for the analysis of property development projects
4. Interpret and communicate the outcomes of development analysis

Learning Outcomes
Graduate Attributes
addressed

On successful completion of this unit students can:

1 Describe the real estate development process and its key actors
2 Identify and collect the data necessary for the analysis of real estate development projects
3 Evaluate the impact of the planning system on development feasibility and profitability
4 Develop feasibility analysis to value land for development and evaluate the feasibility of real
world development projects
5 Evaluate the outcomes of land valuations and development feasibility analyses and provide
advice to clients based upon these evaluations

Curtin's Graduate Attributes

Apply discipline knowledge

Thinking skills

Information skills

(use analytical skills to solve problems)

(confidence to investigate new ideas)

Communication skills

Technology skills

International perspective

Cultural understanding

(value the perspectives of others)

(value the perspectives of others)

Learning how to learn

(apply principles learnt to new situations)
(confidence to tackle unfamiliar problems)

Professional Skills
(work independently and as a team)
(plan own work)

Find out more about Curtin's Graduate attributes at the Office of Teaching & Learning website: otl.curtin.edu.au

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 2 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance

Learning Activities
The unit consists of a weekly 2 hour lecture followed by a 1 hour computer lab. The lecture will provide an overview of
theoretical and practical issues surrounding real estate development and also include guest lectures. Lectures provide
the material which forms the basis of student learning. Additional reading of academic literature and professional
practice based material is required to supplement the lectures.
The computer labs form the practical basis of the unit. The concepts explored in the lecture will form the theoretical
basis for the labs. The labs will focus on developing an Excel based model to analyse the financial feasibility of property
development projects. It will cover introduction of an industry-based property development software and the option for
students to be certified via online training by the Estate Master.
Blackboard is a vital component of the unit. Lecture notes and lab activities will be available via blackboard. Blackboard
will also be used for general announcements, additional material and student feedback.

Learning Resources
Recommended Texts
You do not have to purchase the following textbooks but you may like to refer to them.
Wilkinson and Reed (2008) Property Development. 5th Edition. Routledge. 333.7150941
Reynolds, H.L., Solomon, P.L. (1998) The Property Development Process: Western Australia, Victor Publishing
Shelf no: Q711.409941 REY
Ling, D. & Archer, W. (2007). Real Estate Principles: A Value Approach, McGraw-Hill. Chapter 24 Shelf
Number: 333.332LIN
Byrne, P (1996) Risk, Uncertainty and Decision Making in Property Development, Spon, London Shelf no:
333.7315
Henneberry, J and Guy, S (2002) Development and Developers: Perspectives on Property, Oxford, Blackwell
Science. Shelf no: 307.14 DEL
Miles, Berens and Weiss (2003), Real Estate Development Principles and Process, Third Edition Part Vi, Urban
Land Institute 333.73150973 MIL
Syms, P (2002) Land, Development and Design. Oxford, Blackwell Science Shelf no: 333.73150941
Forlee, Ron (2010) An Intelligent Guide to Australia Property Development
Finance For Real Estate Development, ULI, 2011

Other Resources
The course is fully FLECS - Blackboard dependent. The site contains essential information that you will require in order
to complete your study in this course.
Access: http://lms.curtin.edu.au
It is important that you get into the habit of regularly visiting the site to check for new announcements from your Unit
Controller and to retrieve new learning resources (you are RESPONSIBLE for regularly checking the site and it is
recommended that you do so at least twice a week).
The CBS Student IT Handbook provides instructions for accessing FLECS - Blackboard, together with a very helpful
FAQ section on the use of FLECS - Blackboard. A contact details section for Student IT Support is also provided should
you require further assistance. The Handbook is available from:
http://www.business.curtin.edu.au/business/enrolled-students/it-services/it-handbook
This unit includes quantitative analysis. It is expected that students will bring a suitable calculator to all sessions. Your
calculator should at least have several memories and preferably some built in statistical and financial functions. The
Hewlett Packard 10B is an appropriate calculator.
Lecture materials, computer lab exercises, professional market reports and presentations provide the key learning
resources. Newspaper and Property publications deliver excellent up to date information on the various market sectors.

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 3 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance

Assessment
Assessment Schedule
Task
1 Computer lab tests
2 Semester Test
3 Property Development Feasibility Report

Value %
30 percent
30 percent
40 percent

Date Due
Week: 4 & 11
Week: 9
Week: 15

Unit Learning
Outcome(s)
Assessed
2,4
1,3,5
2,3,5

Detailed information on assessment tasks

1. Assignment 1 Computer Lab Test x 2
Worth: 30% (15% for each test)
Due: Week 4 (19 March 2012) and 11 (7 May 2012)
The 45-minute lab test will cover calculation and short answer questions on land valuation and development
feasibility using Microsoft Excel template developed by Curtin University and Estate Master.
2. Assignment 2 Mid Semester Test
Worth: 30%
Due: Week 9 during the lecture session on 23 April 2012
The 90-minute test will cover the contents of the unit from week 1 to week 8. It will comprise short answer and
calculation questions using the school approved financial calculator. The test will be conducted during the week 9
lecture session at the designated venue.
3. Assignment 3 Development Feasibility Report
Worth: 40%
Due: Week 15, 4 June 2012, 5 pm
This assessment will require the student to produce a written report based on the analysis of a development
scenario. You will be required to use the feasibility tools developed in the computer labs to analyse the scenario
and then report the findings and advice to your client. You will also need to compare your analysis with
alternative development scenarios. Reports must be submitted electronically via blackboard with duly completed
assignment cover sheet. A 10% penalty applies to all late submissions with 10% penalty imposed per additional
late day (including weekends). Penalties shall also apply to submissions over the word limits at a rate of 5% per
100 words. The word limit for the report is 2,500.
Assignment 3 Marking Criteria
1.
2.
3.
4.

Quality of data collection and analysis

Evidence supporting assumptions used
Key findings and final advice to the client
Quality of the report structure and presentation

See more details in the assignment guidelines to be given.

Fair assessment through moderation

Moderation describes a quality assurance process to ensure that assessments are appropriate to the learning
outcomes, and that student work is evaluated consistently by assessors. Minimum standards for the moderation of
assessment are described in the Assessment Manual, available from
policies.curtin.edu.au/policies/teachingandlearning.cfm

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 4 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance
Late penalties
Late Assessment Policy
This ensures that the requirements for submission of assignments and other work to be assessed are fair, transparent,
equitable, and that penalties are consistently applied.
1. All assessments which students are required to submit will have a due date and time specified on the Unit
Outline.
2. Accepting late submission of assignments or other work will be determined by the unit coordinator or Head of
School and will be specified on the Unit Outline.
3. If late submission of assignments or other work is not accepted, students will receive a penalty of 100% after the
due date and time ie a zero mark for the late assessment.
4. If late submission of assignments or other work is accepted, students will be penalised by ten percent per
working day for a late assessment submission (eg a mark equivalent to 10% of the total allocated for the
assessment will be deducted from the marked value for every day that the assessment is late). This means that
an assignment worth 20 will have two marks deducted per working day late. Hence if it was handed in three
working days late and marked as 12/20, the student would receive 6/20. An assessment more than seven
working days overdue will not be marked. Work submitted after this time (due date plus seven days) may
result in a Fail - Incomplete (F-IN) grade being awarded for the unit.

Pass requirements
Overall Assessment Criteria
Students are required to complete all the above assessment tasks and achieve an overall Mark of 50 and above to pass
the Unit.

Referencing style
Students should use the Chicago referencing style when preparing assignments.
More information can be found on this style from the Library web site: library.curtin.edu.au.

Plagiarism
Plagiarism occurs when work or property of another person is presented as one's own, without appropriate
acknowledgement or referencing. Plagiarism is a serious offence. For more information refer to
academicintegrity.curtin.edu.au.

Plagiarism Monitoring
Work submitted may be subjected to a plagiarism detection process, which may include the use of systems such as
'Turnitin'. For further information, see academicintegrity.curtin.edu.au/students/turnitin.cfm.

Additional information
Enrolment:
It is your responsibility to ensure that your enrolment is correct - you can check your enrolment through the eStudent
option on OASIS, where you can also print an Enrolment Advice.

Supplementary/Deferred Exams:
Supplementary and deferred examinations will be held at a date to be advised. Notification to students will be made
after the Board of Examiners meeting via the Official Communications Channel (OCC) in OASIS. It is the student's
responsibility to check their OASIS account on a weekly basis for official Curtin correspondence. If your results show
that you have been awarded a supplementary or deferred exam you should immediately check your OASIS email for
details.

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 5 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance

Student Rights and Responsibilities

It is the responsibility of every student to be aware of all relevant legislation, policies and procedures relating to their
rights and responsibilities as a student. These include:
the Student Charter
the University's Guiding Ethical Principles
the University's policy and statements on plagiarism and academic integrity
copyright principles and responsibilities
the University's policies on appropriate use of software and computer facilities
Information on all these things is available through the University's "Student Rights and Responsibilities website at:
students.curtin.edu.au/rights.

Disability
Students with a disability or medical condition (e.g. mental health condition, chronic illness, physical or sensory
disability, learning disability) are encouraged to seek advice from Disability Services www.disability.curtin.edu.au. A
Disability Advisor will work with you and liaise with staff to identify strategies to assist you to meet unit (including
fieldwork education) and course requirements, where possible. It is important to note that the staff of the university may
not be able to meet your needs if they are not informed of your individual circumstances.

Recent unit changes

We welcome feedback as one way to keep improving this unit. Students are encouraged to provide unit feedback
through eVALUate, Curtin's online student feedback system (see evaluate.curtin.edu.au/info/). Recent changes to this
unit include:
We welcome feedback as one way to keep improving this unit. Students are encouraged to give unit feedback through e
VALUate, Curtins online student feedback system (see http://evaluate.curtin.edu.au/info/index.cfm). Recent changes to
this unit in response to student feedback through eVALUate include:
1. Use of guest lectures for specialized topics
2. Changed assessment to delete final examination and include one additional lab test and mid semester test.
3. Use of new Estate Master program for the labs and test.
For 2012, we will continue to offer student prizes for the two semester events - six $100 cash prizes (drawn weekly) and
the grand prize of $1000 cash (this is drawn at the end of the eVALUate semester event). Participating students from all
campuses included in eVALUate are in the running for the prizes. You can find the 2012 prize winners when you log in
to eVALUate.

See evaluate.curtin.edu.au to find out when you can eVALUate this unit.

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 6 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance

Program calendar
Week

Begin
Date

Lecture/Seminar

Pre-readings

Tutorial

Start-up

20 - 24 Feb

1.

27 Feb

Lecture 1: Introduction, Learning

Outcomes, Unit Structure,
Assessments.
Development Process
Importance of Development, key
players, sectors, basic viability

Wilkinson and
Reed (2008) Ling
& Archer (2007),
Reynolds &
Solomon (1998)

Computer Lab
Excel
Introduction

2.

5 March

Lecture 2: The Development

Process Part 2. Types of
developers and development
profits. Basic Development
Viability Highest and Best Use,
Residual Theory

Reynolds &
Solomon (1998)
Wilkinson and
Reed (2008)
Syms (2002)

Computer Lab
Useful Analysis
Tools.

3.

12 March

Lecture 3: The impact of

planning on development.
Development economics and
profit. The construction lag,
supply & demand variables and
market cycles. Guest Lecture
(TBA)

Introduction to WA
Planning SystemWAPC and DPI
(Blackboard)
Harvey and
Jowsey (2004)

Computer Lab
Static
development
viability model
Revenue and
Costs.

4.

19 March

Lecture 4: Development
feasibility and land valuation.
Introduction to development
viability models. Feasibility
models used in the industry
Estate Master

Wilkinson and
Reed (2008)
Whipple (2006)
Forlee (2010)

Computer Lab
Test on static
development
feasibility

Lecture 5: Cost and revenue

estimation.
Case studies analysis of
development schemes using
static feasibility model.
Development Feasibility The
static model analysing and
interpreting the outputs.

Wilkinson and
Reed (2008)
Reynolds &
Solomon (1998)
Rawlinsons cost
handbook 2011

Lecture 6: Introduction to
dynamic analysis using cash
flows. NPV and IRR analysis and
property development

Materials posted
in the Blackboard

Introduction to
Estate Master
development
feasibility progr
am

Wilkinson and
Reed (2008)

Estate Master
DF and LV
model

5.

6.

26 Mar

2 April

9 April

Tuition Free Week

8.

16 April

Lecture 7: Commercial Property

development
Factors affecting development
values, costs and profitability.
Industry model Brookfield
Multiplex
Guest Lecture (TBA)

Lab Test 1
during lab
sessions, 19
March 2012

Blackboard
materials
Computer Lab
Using Land
Valuation model
and Goal Seek

Blackboard
Materials

Introduction to Assessment 3 Development Feasibility Report.

7.

Assessment
Due

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 7 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B

Curtin Business School

School of Economics and Finance
9

23 April

Lecture 8: Semester Test

covering week 1 to 8. Closed
book exam.

10.

30 April

Lecture 9: Scenario and

sensitivity analysis.
Review of static and dynamic
analysis and alternative
development feasibility models.
Project returns. Equity injection
and equity returns

11.

7 May

12.

14 May

Lecture 10: Development risk

management. Types of risk. GST
treatment and impact on property
development

Lecture 11: Sustainability and

green development. Costs and
value impact

Computer Lab
Creating the
Dynamic Cash
Flow model
Syms (2002)
Wilkinson and
Reed (2008)
Materials posted
on the Blackboard

Computer Lab
Scenario,
Breakeven and
Prob. Analysis

Byrne, P (1996)
Materials posted
on the Blackboard

Lab Test 2 on
Estate Master
program

Materials posted
on the Blackboard

Computer Lab
on Development
Feasibility

Lecture 12: Review overall unit

and learning outcomes

Semester Test
during lecture
session

Lab Test 2
during lab
sessions, 7 May
2012

13.

21 May

Computer Lab
Assignment Q &
A

14.

28 May

Study Week

15.

4 June

Development Feasibility Report Due on 4 June 2011, 5 pm

16.

11 June

Examination Week

10857 Property Development 300

27 Jan 2012
This unit is managed by Dept: School of Economics and Finance; Faculty: Curtin Business School

Page: 8 of 8
CRICOS Provider Code
WA 00301J, NSW 02637B