Land Development Process

1.0 Introduction Land Development Initiation Stage

overview
The commencement point of land
The term “land development” refers development process is when a land is
to the conversion of land for the considered suitable for a different or
purpose of residential, commercial, more intensive use or demand for a
industrial, or other activities. Land particular use leads to a search for a
development can be described by the suitable site by an initiator. The
type of land use in an area, as well as initiator can be the landowners
the characteristics of the development themselves who in turn may also
e.g. residential density. It’s the assume the role of the developer at the
process of converting raw, proceeding stage.
undeveloped land into vertical
Evaluation
construction-ready property.
This is the stage whereby action taken
2.0 Land Development Process
under the form of market research and
Land development process starts with financial appraisal guides the
the decision to develop the land. This developer in making decisions
decision to develop can be initiated by throughout the process. At this stage,
the landowner himself/herself who is the developer is supported by a
the main actor whereby the landowner professional or an economic
is normally directly involved in the consultant in the person of registered
development process from the early property value’s or appraisers. Upon
stage of conceptualization of the instruction, they will prepare a
suitable type of development to be detailed analysis of the characteristics
built on his/her land right to the of the market in terms of the
implementation of the development underlying demand and competitive
itself. The relevant stages of supply in what is called the market
development process are as follows: and feasibility study.

Acquisition
This stage actually begins with legal at this stage comprising the following
investigation of the site on issues such consultants:
as land ownership and planning
 Architects
permission, proceeding with ground
investigation which is a thorough  Quantity surveyors
assessment on the physical attributes  Building surveyors
and capabilities of the site to Permissions
accommodate the development, and
ending with sourcing and obtaining This is the stage where statutory
financing and funding for the planning permission (preliminary
acquisition and development outline planning consent followed
exercises. later on by detailed planning
consent) from the local planning
Design and costing authority before commencing with the
This is the stage where the actual development is obtained. In
preparation of plans and cost some cases and depending on the
estimates for the proposed original status of the acquired land,
development is undertaken generally the landowner or developer has to
carried out simultaneously with apply from the state authority for
various other stages of development conversion and sub-division of the
process. land before the land can be developed.

At this stage, if the developer is a Commitment

large corporate entity already having This is the stage where the land
the qualified professional staff in its development really starts to
stable, then the preparation of the materialize in the form of signed
plans and estimates can be said as to agreements on matters such as inputs
be prepared in-house by the developer of land, finance, labor and
itself. materials and statutory
However, it is also common practice, permissions. Various actors and sub-
as in the case with the public sector actors that have been mentioned
and some private developers to before will come together at this stage
engage an outside professional team performing their associated roles as
follows:
  Landowners, public sector and  Building contractors are the
developer as the main actors in main actor in this stage by
the commitment depending on undertaking the construction of
the structure of partnership on the development scheme
the land development.  Engineers are involved in this
 Lawyers / solicitors in stage in the construction of
overseeing the signed improvements on the land.
agreements, tenders and  Project managers are normally
contracts between the developer employed if the land
and building contractor and its development schemes are large
professional team of and complicated to manage the
consultants such as architects, professional team and the
quantity surveyors and building contract on behalf of
engineers the developer.
Implementation Let / manage / dispose
This is the stage when all the raw This is the stage of securing a willing
materials of the development occupier of the end-product of the
process are in place. Once again development at the estimated rent or
various actors and sub-actors that price by way of letting or outright
have been mentioned before will sale. The main actor at this last stage
come together at this stage performing (which can also be the first stage
their relevant roles as follows: depending on the type of the
development) is the property or estate
 Architects administer the
agent who is the link between the
design and build contracts and
developer and the occupier. Agents
certify completion of the
may also be used by developers to
building works.
assist them in securing the finance for
 Quantity surveyors monitoring
a development scheme.
the construction and approving
stage payments to the
contractor, and participating in
the administration and
management of design and
build contracts.
Land Development Stage Main Actor(s) Supporting Actor(s)

Initiation  Landowner  Accountant

 Public Sector  Commercial Agent
 Estate Agent
Evaluation  Developer  Professional
 Economic
Consultant
(eg. Registered Property
Valuer or Appraiser)
Acquisition  Developer  Solicitor
 Public Sector  Accountant
 Financier
 Land Surveyor
 Valuer
Design and Costing  Developer  Architect
 Quantity Surveyor
 Building Surveyor
Permission (including  Planning  Planning Consultant
conversion, sub-division  Authority  Architect
and amalgamation)  Land Surveyor
Commitment  Landowner  Solicitor
 Public Sector  Building Contractor
 Developer  Architect
 Quantity Surveyor
 Engineer
 Supplier
Implementation  Developer  Sub-contractor
 Building Contractor  Architect
 Project Manager  Quantity Surveyor
 Engineer
 Supplier
Let / Manage / Dispose  Landowner  End Financier
 Developer  Lawyer
 Occupier  Estate Agent
 Valuer