- Gross Development Value (GDV) – The forecast of sale or revenue anticipated from the property or development project once it’s completed. The GDV will take account into several factors like location of the property, demand, size, quality. From the developer’s perspective, one of the important valuation metric is the profit percentage from GDV. For comparison purposes, Avantro GDV is RM517 million, The WYn RM630 million, Danau Puchong RM200 million.
- Plot Ratio – It tells the maximum area or space that can be used for construction, based on the land. Generally, the plot ratio is determined or influenced by several factors such as location (Some authoritiies allow higher plot ratio for urban area eg near to MRT/LRT), land use (commercial land could have higher plot ratio than industrial), land topography (land that are nearer to risky areas such as hill slopes has lower plot ratio)
Simple Calculation for Plot Ratio:
If a developer would like to develop a project on 160,000 sqft of land with a GDV of RM630 mil, A 1:10 plot ratio would allow the developer to build 1600 units ! 1000 sqft each. Each unit will cost RM393,750 (630mil/1600). If the plot ratio is lower eg 1:5, then, the number of units built would be halved i.e 800 units @ 1000 sqft each. But the price will be higher RM787,500 (630mil/800).
The Plot ratio cap for Kuala Lumpur area (under KL City Plan 2020) has been changed to ratios 1:10 mainly to control the size of the development in the city as KL is already a crowded property market. - APDL: stands for Advertising Permit and Developer’s License issued by the KPKT or Ministry of Housing and Local Government and it is part of protection for the consumers. It is basically a permit that allows the developer to carry out development work of the residential properties as well as to advertise and sell properties. For the advertising, the developer needs to specify things like
– Validity period
– Project name
– Land Tenure
– Min and max price
– Projected completion date
- Work order: Basically a document that listed the details of a specific project to be carried out. The contruction company (usually main con) create a and define their scope of work that they expect and agree to accomplish to their client (i.e developer). Both construction company and developer agree on the terms and sign off the documents.
- TOD: Abbreviation for Transit-oriented developments essentially an integrated urban place that is near to public transport, shops, parks, walkable street designs among others.
- QLASSIC: Qlassic is a method for assessing the quality of construction work. It involves inspecting the site after a project is completed and ready for vacant possession. Only the completed project will have a QLASSIC score as it involved site inspection of the completed project (not the undercon). There are a few assessment criteria involved in QLASSIC which includes:-
– Architecture
– Structure
– M&E
-Infrastructure
Each of the elements will carry a different weight. Architecture & structure will usually carry the highest weight.
7. Deed of Mutual Covenant (DMC): A binding agreement that binds all the owners in a strata development to a set of rules (i.e. “house rules”), before the JMB’s creation.
8. Deed of Assignment (DOA): is a legal document that transfers ownership of a property or other asset that does not have the title (yet) from one party to another, in the condition where units of the property are not divided yet. Once units have been divided, the MOT will be signed that shows the buyer’s name, as the rightful and legal owner.
9. Facility Agreement (FA): A facility agreement is a legal document that outlines the terms and conditions for a loan between a borrower and a lender. It’s also known as a loan agreement, credit facility agreement, or facility letter.