Building Investment (September - October 2018)

OUTLOOK
.
Development costs a lot of money and developers rely on loans and other sources to
12%
. In this case, the
development.
RM250,000RM350,000 so
RM112,197,472 or 64% of
Table 4).
40%
ITEM
QUANTITY
COST
PER UNIT
TOTAL COST
Gross Development Value (GDV) 500 units RM350,000 RM175,000,000
Land cost - - RM23,958,000
Total Building Cost - - RM61,650,000
Total Infrastructure Cost - - RM9,250,000
Total Facility Cost - - RM340,000
Capital Contributions & Compliance Costs
- Land conversion premium
- (Agriculture to residential)
- Development order/Planning fees 500 units RM50 RM25,000
- Building plan & Infra fees 500 units RM150 RM75,000
- Survey fees 5 acres RM5,000 RM25,000
- Strata title application 500 units RM1,200 RM600,000
RM500
- ISF contribution – road 450,000 ft 2 (for every 1,000ft 2 )
RM225,000
- ISF contribution – drainage 5 acres RM5,000 RM25,000
- Development charges - 1.5% of GDV RM2,625,000
- Contribution to TNB 500 units RM450 RM225,000
- Contribution to IWK - 1.0% of GDV RM1,750,000
- Contribution to SYABAS
– residential
- 0.25% of GDV RM437,500
Total Capital Contributions & Compliance Costs RM9,606,200
Other Soft Costs
- Professional fees
- *6% of Construction Cost RM4,768,272
- Sales & marketing &
administration cost
- *1.5% of GDV RM2,625,000
Total Soft Cost RM7,393,272
(Note: Adjusted figures are highlighted in blue colour)
Table 4: Adjusted development cost.
15% of
market value
RM110 per ft 2
RM3,593,700
need to review and lower down or
already required to lay infrastructure in
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