127.241 Property Market Principles

Assignment 1 – Report worth 30% of your final grade.

This assignment will enable you to  provide  evidence  of your  competence  in  the following course learning outcomes:

•    Describe the factors that influence the real property market.

•    Critically analyse how environmental and/or sustainability factors impact on property decision making.

Summary: Prepare a report where you determine an alternative highest and best use for the Quad A and Quad B Building/s on the Massey Albany Campus. Please refer to the story of 18 December 2023, ‘Cash-strapped Massey University to sell or lease parts of its campuses’ by George Heagney: https://www.stuff.co.nz/national/education/301026066/cashstrapped- massey-university-to-sell-or-lease-parts-of-its-campuses

Working for HIJ Consultants, you need to address the report to Professor Jan Thomas, Massey University, PO Box 123, Auckland. Professor Thomas wants to understand what potential buyers may use the buildings and land for.

The buildings are currently used by Massey University staff; however, your task is to find an alternative use from this current use. Your conclusion cannot be that the current use is the highest and best use, as this is not the point of the assignment. There is noone right answer, rather, we are looking at how you determine your conclusions.

The definition of highest and best use is: “the use of an asset that maximises its potential and that is physically possible, legally permissible and financially feasible.”  (International Valuation Standards Council).  Consequently, you should base your answer upon the physical, legal, and financial dimensions of the property.

1.    Physical:     You should briefly describe the property, the location, and any other pertinent factors. What is the property best suited for, or what can it accommodate practically?  You  may  find  the  screenshot  in  the  appendix  helpful,  where  you  can estimate  an  area  around  the  buildings.  Please  refer  to  the  heading:  ‘ Extract  from Auckland Council Geomaps.’

2.    Legal:  What does the District or Unitary Plan say you can do with the property?   You will need to visithttps://www.aucklandcouncil.govt.nz/plans-projects-policies-reports- bylaws/our-plans-strategies/unitary-plan/Pages/default.aspx

In this  assignment you are required to identify how the Unitary plan  protects  the sustainability of landon the subject site.  We prefer that you comment on one or two sustainability factors, in depth, rather than listing numerous examples.

Additionally, refer to the Record of Title, which is at the back of this question information.

3.    Financial: What current market trends help to justify your choice? You do not have to carryout a detailed financial feasibility; however, any broad financial indications of the rent, sale price etc would be highly regarded.

With the above points 1-2 inclusive you need to critically analyse each possible option (i.e. residential,  retail  etc.)   by  evaluating  the   advantages  and  disadvantages.  Also,   include  a recommendation for how the property could be redeveloped, or reused in an acceptable way to Massey University. Massey will continue to own and occupy other parts of the campus.

Further comments:

1.    Be sure to comment on a sustainability factor/s from the unitary plan. Note that I would prefer that students go into depth on one or two factors rather than discuss many different factors.

2.    To encourage attendance  in class, for this assessment only, I will allow students to submit an assignment as a group. The maximum group number is five (5) students, but to be eligible, those students  must regularly attend classes in person, or who have justifiable reasons for not attending e.g., a note from a doctor specifying they have been medically unwell. Please send me the list of group members prior to week nine.

The motive for allowing this option is to encourage class attendance. Students will need to manage the group themselves, as there will be different styles and motivation levels. In the worst-case scenario, some group members may not contribute at all, so choose wisely. There are no additional marks for level of participation for this assignment, but I do want you to indicate what contribution each student  made  (not  part  of word count). In serious circumstances where a student does not contribute at all then the other group members can provide me with written feedback, and after trying  to communicate with the student, I reserve the right to award reduced marks or a mark of zero to the non-contributing team member.

Marking guidelines

Report writing – some comments.

Insetting these assignment guidelines from the introductory Accounting course (115.112) have been used because it should be a format familiar to both Construction and Property  students alike. Please use a reasonable layout that needs to be focused, concise and summarised.

The following extract may be of assistance:

‘Writing reports gives practice applying theoretical concepts to a real-life context. If you are   planning a career in an organisational context, it is likely that at various stages in your career  writing reports will be required. Learning to write a report, therefore, is not just a method by which your lecturers evaluate you; it is also part of professional development, and away of    learning business principles, integrating them into your critical mind.

Organisations call for reports when they have difficult decisions to make. They therefore require the author to exhibit investigative skills, judgment, and the ability to write

persuasively. Writing persuasively for a report, means that you need to appear to be objective. You are required to produce proof or evidence to support your ideas.

Remember above all that a report is a practical project. A report assumes that someone has a problem, and they want guidance on how to deal with the problem. If you are writing for a

particular person, keep that person in mind.

(Emerson, L. (2000). Writing Guidelines for Business Students. pp. 32-33. Palmerston North, Dunmore Press.)

The following is an example of a basic report structure (to follow the heading):

Title Page

Introduction

1.           Identify subject, context and specific problem.

2.           Define specific objectives

Discussion/Analysis

1.           Sub-divide into logical units

2.           Use headings and arrange into logical sequence

3.           Present evidence to support conclusions

4.           Focus on objectives (the specific problem)

Conclusions/Recommendations

1.            Relate to objectives

2.           Follow from facts

(Extract from Emerson, L. (1998) Report Writing, p. 2. Student Learning Centre, Massey University.)

Your assignment report does not require an index, introductory letter etc. Fuller guidance may be found on the Massey website:

http://owll.massey.ac.nz/assignment-types/business-report-writing-resources.php