One of the many challenges facing Property Developer is writing a good project brief for Architect / Master Planner. Some Developers do this instinctively , some by trial and error, some rely on foreign Planners who have no fundamental knowledge of the local culture and economic condition. A good project brief separates winners from losers in a competitive market.
What are the requirements and considerations for writing a good brief?
1. Understanding the Strength & Weaknesses of the land - site survey, location, size, shape, traffic and surrounding infrastructure.
2. Good market research required - demand and supply of different property sectors, opportunities and threats, target market
3. Cultural understanding & preference - Feng Shui , family size, etc.
4. Economics condition - local purchasing power, foreign investment allowed, surrounding competition, construction cost ( Bare finish, Medium quality, Luxury).
5. Different types of land - freehold , leased , BOT ( Build Operate Transfer), etc .
6. Local Building Regulation - Land Use, Plot Ratio, Green Area, FAR ( Floor Area Ratio), Building Coverage Ratio ( BCR) , maximum height, car park requirements, any other limitations e.g. near airport.
7. A quick feasibility with financial modeling - revenue vs. cost, land cost evaluation , testing different property products and getting the IRR ( Internal Rate of Return) based on current and future cost & prices
8. Cash flow forecast - phasing of project for minimum capital outlay , short term (sales) and long term projects (rental)
9. Internal company strength - low cost, new technology and marketing network in different sectors : residential , service apartments, office, shopping malls, industrial estates, resort homes, etc.
Importance of a good Project Brief
1. Developer planning requirements are clear for Architect to design efficiently, no guess work, less frustrating abortive work;
2. Developer has a competitive edge over others with the right products ;
3. Developer foresees the future market as projects takes 3-5 years to complete;
4. Developer minimizes capital outlay with initial fast product for quick sales ;
5. Developer uses less financing if phasing is done diligently ;
6. Developer optimizes use of its land and not necessary maximizes its plot ratio;
7. Developer reduce risk of commercial failure;
8. Developer easier to convince investors and financial institution to invest.
