Land Development – Feasibility Assessment
Town of Port Hedland | 2020
- Land Use Analysis
- Scenario Modelling
- Socio-economic and Demographic Analysis
- Feasibility assessment
- Best Practice Benchmarking
Pracsys was approached by the Town of Port Hedland to prepare a feasibility assessment for the development of two separate vacant land parcels in Port Hedland. The Town required an assessment of the feasibility of residential development at the subject sites under four different density scenarios and three different population growth scenarios. The results were used to inform their decision making and negotiations with State government and private industry.
We prepared a detailed breakdown of project construction costs under the four density scenarios at both subject sites, through a combination of industry standard cost benchmarking and quantity surveyor costings. Project revenue was estimated through property market value research and dwelling uptake modelling; this was compared with project cost estimates to determine feasibility. Project feasibility was assessed for 12 distinct scenarios at each of the two sites, with key performance indicators reported.
The commercial feasibility analysis concluded that residential development of the subject sites would not provide a commercial return to the Town of Port Hedland under current market conditions. Based on this result, Pracsys undertook further analysis of the feasibility of a subdivision-only development option and recommended that the Town explore non-financial justifications for residential development of the subject sites. Pracsys also suggested that higher residential sales prices may be achieved through targeted marketing and as a result of the Port Hedland West End Buy Back Scheme, improving the commercial feasibility of both residential development projects.