Controlling risk in a town house development : a case study
- Authors: Gordon-Watt, Matthew
- Date: 2011-12-06
- Subjects: Loss control , Risk management , Risk assessment , Project management , Housing development , Real estate development
- Type: Thesis
- Identifier: uj:1857 , http://hdl.handle.net/10210/4214
- Description: M.Ing. , As the title of the dissertation implies, 'control' and 'risk' are the core issues regarding the dissertation. The approach by which a property development company manages these two issues are the focal points. The primary research objective was to draw conclusions from feedback obtained via a property developer and compare the findings to its literature counterpart. Expanding on the primary objective one aimed to determine commonalties and differences (case study and literature) and derive logical explanations for those differences. The second research objective was a by-product from the first. That being if the property developer is controlling his risk in the best manner possible given the inherent restrictions, in other words is the system efficient. It was evident that control measures and ways to identify and manage risk were put in place by the developer. Most of the literature theory corresponds with that of the property developer. Elements of risk were noted via analysis of the results. One way of increasing the efficiency of the system would be to increase the focus/resources in the evaluation/planning phase. In turn by improving the control mechanisms it may be possible to improve the systems efficiency. Risk can not be eliminated in its entirety - it is part and parcel of any business, particularly that of property development. Risk and control are therefore critical elements in any business. Understanding the core issues surrounding those elements can only prove beneficial to a company's success. Furthermore, the dissertation raised important issues that may be addressed in future research. Issues that may be followed up on in future research include and are not limited to the following: • Analysis of control and risk management' methods on a broader scale, in terms of a larger survey population. • Investigate and analyze the efficiency of a property development company/companies. • Expand on various risk issues: - return on investment, the market, project site, the project, the process, the organization and contingency. • Expand on various control measures: - tools (charts, schedules etc.), communication.
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A systems approach to the management of demand risk in commercial property development
- Authors: Javangwe, Wilson Matsika Isheunesu
- Date: 2012-02-06
- Subjects: Commercial real estate , Real estate development , Real estate investment , Risk management
- Type: Mini-Dissertation
- Identifier: uj:2004 , http://hdl.handle.net/10210/4358
- Description: M.Ing. , One of the features of institutionalized markets is the concentration of assets in the hands of a few individuals which necessitates the management of not only the risk of individual assets and loans, but more importantly, that of the portfolio and the aggregate risk thereof. Even when individual commercial real estate (CRE) loans are prudently underwritten, concentrations of loans that are similarly affected by cyclical changes in the economy can expose an institution to an unacceptable level of risk if not properly managed. The management of demand risk is of particular importance given that CRE assets are procured on the basis of their income producing ability. The suggestion by various authors has been that supply side issues such as overbuilding are major cause of downside in the real estate market. In this text however the suggestion is that demand side issues; specifically the failure to track and account for demand volatility contributes greatly to overall CRE risk. Analysis of the structure and system of the CRE markets reveals that the system of interdependency amongst the various participants, which determines the overall market outcomes, necessitates a systems approach. The findings of this analysis and systems approach suggests, that perhaps the majority of CRE models currently employed are incorrectly specified as they either fail to account for the multivariate environment or ignore the qualitative aspects of the investment decision totally. Using a systems framework, the author, through a literature review, demonstrates the successful application of both quantitative and qualitative models in modelling a design solution that is informed by the multiple determinants of demand.
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