- Title
- Property development: a lead-time management framework
- Creator
- Stander, Ruan
- Subject
- Planned communities -- South Africa Land subdivision -- South Africa
- Date Issued
- 2016
- Date
- 2016
- Type
- Thesis
- Type
- Masters
- Type
- MTech
- Identifier
- http://hdl.handle.net/10948/12703
- Identifier
- vital:27110
- Description
- Property development is a complex activity, with a series of stages involving many players with differing objectives, all operating within the building cycle context and its interaction with business and credit cycles. Before developers commit to acquiring land and sign a building contract, they first evaluate the market to establish a project’s viability, and secure finance and planning consents. (Cadman and Topping, 1995: 27). The residential property developer must have a fair knowledge of the changes in the economy and be able to interpret data collected. This knowledge is critical in order to make good business decisions and for future project planning. Understanding the economic variables and the impact these have on households, provides knowledge to the consumer to assist with financial planning and future investment options (Vogel, 2012: 14). Currently, everyone is aware of the huge negative impact of the global economic crisis, especially concerning international investment companies in western countries. Many businesses have ceased operations and some investment banks have experienced large scale bankruptcy due to the economic crisis and resulting recession. The Chinese economy suffered losses in the crisis as well (Yiping, 2011: 6). Even though the export industry experienced a huge negative impact in the economic crisis, the Chinese government announced that GDP growth remained at 8.7% in 2009. The highest contributor towards the Chinese GDP growth was the real estate industry (Yiping, 2011: 6). Presently in China, the real estate industry is a new economic growth point and the main industry in its Gross Domestic Product. Currently, the real estate market in China is facing unprecedented opportunities and challenges (Yiping, 2011: 6). From the above-mentioned statement by Yiping (2011: 6), it is evident that property development plays a major role in Gross Domestic Product (GDP) of global economies worldwide as well as in South Africa and that change in the supply and demand value of property impacts the performance of the property market. In times of property booms, the property market escalates and there is an under supply of property. This makes it a seller’s market, which stimulates the economy, as was the case during the period of 2004 to 2008. When the property bust hit in 2009, the world experienced an inevitable downturn in economic markets. This was known as the Global Financial Crisis (GFC) and was due to various factors such as: increased interest rates; increase of stricter mortgage bond approvals; recession and other possible financial regulatory factors. A downturn in property prices became evident and property development was negatively impacted (Reed, Sims and Cadman, 2015). This impact on the property sector caused a relative over supply of property, making it a limited buyer’s market and forced real estate agents, property developers and owners to decrease the price of property thus negatively affecting the GDP of the economy. This research was conducted by means of a review of the related literature as well as an empirical study. The empirical study was conducted with the use of a quantitative statistical approach. In this study, research questionnaires as a data collection tool were distributed to members of the sample population. The primary objective of the study was to develop a framework for the successful delivery of residential developments in South Africa, especially in the context of time. A descriptive survey was conducted among professional property development practitioners, real estate agencies, conveyancers and project managers in South Africa.
- Format
- xxii, 277 leaves
- Format
- Publisher
- Nelson Mandela Metropolitan University
- Publisher
- Faculty of Engineering, the Built Environment and Information Technology
- Language
- English
- Rights
- Nelson Mandela Metropolitan University
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