Q1 As a Registered Valuer, you are required to assess a piece of potential land, a site of 10 acres that is to be developed as a housing area. The owner of the land has offered to a developer to develop the land. The Developer has submitted an application for a layout plan containing 20 units of double storey terraced houses and 60 units of single storey terraced houses and is awaiting for approval. There is a steady market demand for this area which contains several existing housing areas that make it suitable for the development of another new housing area. From the market survey the estimation of sales price of the houses as follows: Table Q1(a): The Market Survey Types of development: Selling Price Double storey Terraced houses Single storey Terraced houses RM488,000/unit RM320,000/unit The following are information for the cost of project development: Table Q1(b): The Cost of Project Development Pre-Development-Cost Site preparation : RM20,000.00 per acre Survey cost : RM300 per unit Cost of individual title : RM250 per unit Cost of building plan approval : RM220 per unit Cost of additional premium (conversion from agriculture to : RM40,000 per acre Building) Construction Cost: Double storey Terraced houses RM200,000/unit Single storey Terraced houses RM150,000/unit Infrastructure cost RM20,000 per/unit of houses Contribution to government agency RM5,000 per unit Professional fees 5% from Construction cost & Infrastructure Cost Management fee 1% from GDV (Gross Development Value Cost of Estate Agency for selling of houses 1% from GDV (Gross Development Value) Cost of finance 50% from construction and infrastructure cost for 1 year @ 12% per year. Advise the Developer of the land as to maximum price they can offer for the land, based on information given and you should support the answer with explanations. (25 marks)