BQS606 Construction Economics III Coursework 2 – Development Order | UiTM

BQS606 CONSTRUCTION ECONOMICS III

COURSEWORK 2 – DEVELOPMENT ORDER

The development order is an important thing for the construction economics course.

1. Introduction to Tenure Types
   1.1 Freehold Land
   When you own freehold land you have the land for long as you want. The person who owns the land can do what they want with it like sell it or give it to someone as long as they follow the rules of the local government.
   
   1.2 Leasehold Land
   Leasehold land is different. You only own it for an amount of time like 30, 60 or 99 years. When the time is up the land goes back to the government unless you can get an extension.
   
   1.3 Impact of Land Tenure on Development
   The way you own land really affects if you can develop it or not.
• Freehold land is better for investors because they own it forever and it is easier to get money from banks.
• easehold land can be harder to get money for and to get approved especially if the lease is not for a time.
• Banks like to lend money for land because it is less risky.
• If you have a lease you might not be able to do what you want with the land because of the rules in the lease.

2. Local Authority Profile
   The authority I am looking at is Kuala Lumpur City Hall, also known as DBKL.
   Kuala Lumpur City Hall is in charge of planning the city controlling development and making sure buildings are safe in Kuala Lumpur.
   
   There are departments that are involved:

• The Town Planning Department makes sure the city is planned well and that people follow the rules.
• The Building Control Department checks building plans to make sure they are safe.
• The Engineering Department takes care of things like roads and water.
• The Valuation and Property Management Department figures out how much development will cost and how much the land is worth.
• The Environmental Health Department makes sure everything is safe for the environment and for people.

3. Regulatory and Approval Framework
   
   3.1 Land Use Conversion / Subdivision / Amalgamation
   
   To do this you have to:
   Send in an application to the Land Office
   Wait for the planning department to review it
   Get approval from the state
   Pay some fees
   Get an approval letter
   
   3.2 Planning Permission
   
   You have to:
   Send in an application
   Wait for the site plan to be reviewed
   Get it reviewed by a committee
   Wait for a decision
   Get a development order
   
   3.3 Building Plan Approval
   
   You have to:
   Send in your plans
   Wait for the building department to review them
   Get fire safety approval
   Get engineering clearance
   Get approval
   
   3.4 Developer’s License & Advertising Permit
   
   You have to:
   Apply to the Housing Ministry
   Get your money checked
   Get your plans reviewed
   Get a license
   Get a permit
   
   3.5 Certificate of Completion and Compliance
   
   You have to:
   Finish building
   Get it inspected
   Make sure everything is safe
   Get a certificate
   Then you can let people move in

4. Fees and Costs Table
   
   Here are some fees you might have to pay:
   Land Use Conversion: you have to pay a fee based on the value of the land
   Subdivision/Amalgamation: you have to pay between RM 1,000 and RM 10,000
   Planning Permission: you have to pay between RM 500 and RM 5,000
   Building Plan Approval: you have to pay between RM 1,000 and RM 20,000
   It depends on how big your project`s

5. Feasibility Study Integration
   Before you start a development project you have to do a feasibility study.
   This means you have to look at if it`s possible to do the project from different angles.
   
   5.1 Legal Feasibility

   • You have to make sure you are following all the rules and laws.
   • You have to get approval from the authority before you can start building.

   5.2 Financial Feasibility

   • You have to figure out how much it will cost to build and how much the land will cost.
   • You have to see if you will make a profit and if it is worth investing in.

   5.3 Market Feasibility

   • You have to see if people will want to buy or rent what you are building.
   • You have to look at what`s happening in the market in Kuala Lumpur.

   For example if you want to build apartments in Kuala Lumpur you have to see if people want to live

   • There are a lot of people moving to the city so it might be an idea.
   • It can be a bit risky because it can be hard to get approval and the cost of the land can be high.
   • So it might be a to high risk project.

6. . Critical Analysis
   The process of getting approval for development in Malaysia is. Helps control how land is used.
   It is not perfect.
   
   The good things about it are:

   • It has rules to follow
   • It makes sure everything is safe and good for the environment
   • It stops people from building things they should not

   The bad things about it are:

   • It can take a time to get approval
   • It can be expensive
   • There are a lot of departments involved which can cause delays

   Some things that could be improved are:

   • Making the approval process digital
   • Having one place where you can get all the approvals you need
   • Reducing the amount of paperwork you have to do Setting a timeline for when you will get a decision

   The development approval process in Malaysia`s good but it needs to be modernized to be more efficient.

7. Conclusion

In conclusion the way you own land like freehold or leasehold really affects if you can develop it or not in Malaysia.

The local authorities like DBKL play a role, in controlling development through the approval process.

The current system is good because it controls development and makes sure everything is safe.

It needs to be improved to be more efficient and cost-effective which would make it easier for investors to develop land.