HOUSING DELIVERY HOUSING DELIVERY

FRAMEWORK/PROCESS

LECTURE 05LECTURE 05

HOUSING DELIVERY HOUSING DELIVERY

FRAMEWORK/PROCESS

LECTURE 05LECTURE 05

HOUSING DELIVERY FRAMEWORK:

HOUSING DELIVERY FRAMEWORK

- INVOLVES:- INVOLVES:

- HOUSING PRODUCTION OR

HOUSING SUPPLY INTO

THE MARKET

- EXCHANGE MEDIUMS - EXCHANGE MEDIUMS

THAT INTERVENE IN THE

MARKET PROCESS

HOUSING DELIVERY FRAMEWORK:

HOUSING PRODUCTION OR

SHAPE SUPPLY

AND DEMAND

IN THE HOUSING PRODUCTION

DEVELOPERS

- MAIN SUPPLIER OF HOUSING UNITS INTO THE

MARKET

ARE AN AGENT OF CHANGE FOR THE PHYSICAL

LAND USE TO HOUSING CONSTRUCTION

THEY ASSEMBLE ALL THE NECESSARY RESOURCES AND

MONITOR DEVELOPMENT PROCESS COMPLETION AND MONITOR DEVELOPMENT PROCESS COMPLETION AND

SOLD

MAIN SUPPLIER OF HOUSING UNITS INTO THE

ARE AN AGENT OF CHANGE FOR THE PHYSICAL

LAND USE TO HOUSING CONSTRUCTION

THEY ASSEMBLE ALL THE NECESSARY RESOURCES AND

MONITOR DEVELOPMENT PROCESS COMPLETION AND MONITOR DEVELOPMENT PROCESS COMPLETION AND

LAND AND HOUSING MARKETS

- ARE DOMINATED

- BY BIG DEVELOPMENT FIRMS

- DUE TO IMPERFECT MARKET

ARISING FROM

RESTRICTED MARKET INFORMATION

BY BIG DEVELOPMENT FIRMS

DUE TO IMPERFECT MARKET

ARISING FROM

RESTRICTED MARKET INFORMATION

THE EXCHANGE MEDIUMS IN HOUSING DELIVERY

- ARE PRIMARILY CONCERNED OVER

THE GOVERNMENT INTERVENES

- AT VARIOUS STAGES OF HOUSING PROVISION

- LAND ASSEMBLY

- DEVELOPMENT PROCESS

- CONSTRUCTION

- FINANCE AND

- CONSUMPTION

THE EXCHANGE MEDIUMS IN HOUSING DELIVERY

VER THE GOVERNMENT’S INTERVENTIONS

AT VARIOUS STAGES OF HOUSING PROVISION

DEVELOPMENT PROCESS

THE INTERVENTIONS:

- PROVIDE A STRUCTURE IN WHICH

RELATING TO:

- BUILDING MATERIAL

- LAND DEVELOPMENT- LAND DEVELOPMENT

- CONSTRUCTION STANDARDS

- IMPOSE CONSTRAINT ON THE ACTIONS OF MARKET PLAYERS

- REPLACE PRIVATE INTEREST BY TAK- REPLACE PRIVATE INTEREST BY TAK

BUILDERS

ICH A FREE MARKET OPERATES SUCH AS

CONSTRUCTION STANDARDS

IMPOSE CONSTRAINT ON THE ACTIONS OF MARKET PLAYERS

TAKING ON THE ROLES OF DEVELOPERS OR TAKING ON THE ROLES OF DEVELOPERS OR

HOUSING POLICIES REMAINED THE MAJOR FACTOR

- DETERMINING THE LEVEL OF HOUSING INVESTMENTS

- IMPROVEMENT IN THE OVERALL HOUSING CONDITIONS

HOME-OWNERSHIP POLICY

- INFLUENCE

- THE QUANTITY

- COMPOSITION

- INFLUENCE

- TRADE-OFFS

HOUSING POLICIES REMAINED THE MAJOR FACTOR

DETERMINING THE LEVEL OF HOUSING INVESTMENTS

IMPROVEMENT IN THE OVERALL HOUSING CONDITIONS

HOUSING SUPPLY

HOUSING POLICIES

- INFLUENCE

- HOUSING SUPPLY INTO THE MARKET VIA:

- PLANNING CONTROL ON LAND USE

- COMPLICATED PROCEDURES UNDER THE

DEVELOPMENT PROCESS INCLUDING

LAND RULES

- CONTROL OF LAND SUPPLY FOR - CONTROL OF LAND SUPPLY FOR

DEVELOPMENT

HOUSING SUPPLY INTO THE MARKET VIA:

PLANNING CONTROL ON LAND USE

COMPLICATED PROCEDURES UNDER THE

DEVELOPMENT PROCESS INCLUDING

CONTROL OF LAND SUPPLY FOR CONTROL OF LAND SUPPLY FOR

DEVELOPMENT

HOUSING FINANCE

- ONE OF THE MOST ESSENTIAL MEDIUM IN THE HOUSING

DELIVERY FRAMEWORK

- SHAPES HOUSING DELIVERY SYSTEM IN MOST

COUNTRY

THERE EXISTS A BANK – DEVELOPER THERE EXISTS A BANK – DEVELOPER

HOUSING DEVELOPMENT

ONE OF THE MOST ESSENTIAL MEDIUM IN THE HOUSING

SHAPES HOUSING DELIVERY SYSTEM IN MOST

DEVELOPER – HOUSE BUYER RELATIONSHIPDEVELOPER – HOUSE BUYER RELATIONSHIP

BANK

FINANCING

HOUSE BUYER

LAND & BUILDING

BUY A

HOUSE

BANKBRIDGE

FINANCE

DEVELOPER

LAND & BUILDING

PROJECT

CONSTRUCTI

THE SELL-THEN-BUILD HOUSING DELIVERY

- BANKERS ( AS INVESTORS IN THE HOUSINB )

- DISBURSE LOAN ACCORDING TO THE DEVELOPER’S WORK

PROGRESS

- DEVELOPERS

- TRANSFER SOME OF THE

UPON RECEIVING INITIAL DEPOSITS AND STAGED PAYMENTS ON THE WORK

PROGRESS

- BUYERS- BUYERS

- SHOULDER PROJECT FINA

CONSUMERS IN HOUSING PRODUCTION

BUILD HOUSING DELIVERY

( AS INVESTORS IN THE HOUSINB )

DISBURSE LOAN ACCORDING TO THE DEVELOPER’S WORK

THE PROJECT FINANCE AND RISKS TO BUYE

UPON RECEIVING INITIAL DEPOSITS AND STAGED PAYMENTS ON THE WORK

FINANCE AND RISKS ALTHOUGH THEY ARE

CONSUMERS IN HOUSING PRODUCTION

THE FINANCE IS UTILISED

TO SUPPLEMENT THE UPFRONT FUNDING OF A PROJECT SUCH AS:

- LAND COST- LAND COST

- PRELIMINARY EXPENSES

- COSTS OF CONSTRUCTION

TO SUPPLEMENT THE UPFRONT FUNDING OF A PROJECT SUCH AS:

PRELIMINARY EXPENSES

COSTS OF CONSTRUCTION

HOUSING DEVELOPMENT PROCESS

INVOLVES TWO ASPECTS

– PHYSICAL DEVELOPMENTPHYSICAL DEVELOPMENT

– DISPOSAL OF HOUSING PRODUCTS ITO THE MARKET

HOUSING DEVELOPMENT PROCESS

DISPOSAL OF HOUSING PRODUCTS ITO THE MARKET

- INVOLVES 2 ASPECTS OF PHYSICAL DEVELOPME

Planning

Approval

Building

Plan

Approval

Starts

Land Use Conversion

Subdivision/amalgam

ation

N P

Pre-Planned

Planning/ Developme

nt Order/ Layout Plan

J

Planned Supply

Building Plan

K

Construction Permit

Change of express

condition

Surrender &

Realienation

O Q

Redevelopment Property

Advertisement & Sales Permit

Launch Sales Mortgage/Financing

Commercial &

Industrial

PMENT AND DISPOSAL OF HOUSING PRODUCT IN THE M

Starts Constructio

n

Completion Existing

Stock

Incoming Supply Existing Stock

Construction Permit

L

Issuance of CF

M

Commencement of

Foundation work

Inspection/Interview

Existing Stock

Owner-occupied/

Rent

Housing

Demolished/ Burned down/ Extension of existing stock

PHYSICAL CONSTRUCTION

DISPOSAL OF HOUSING PRODUCT INTO THE MARKET FOR SALES

PHYSICAL CONSTRUCTION

– HOUSING DEVELOPMENT BEGINS WITH LAND CONVERSION AND SUBDIVISION PROCESSES OF

AGRICULTURE LAND FOR NEW HOUSING DEVELOPMENTAGRICULTURE LAND FOR NEW HOUSING DEVELOPMENT

– LAND-USE PLANNING IS AS A DEVELOPMENT CON

PRESERVES NEIGHBORHOOD VALUES

– THE PROCESSES ARE RESULTED FROM THE INTERPLAY OF DECISION

- LAND OWNERS

- DEVELOPERS AND

- GOVERNMENT AGENCIES- GOVERNMENT AGENCIES

– PRIVATE DEVELOPERS ARE INVOLVED IN BOTH SM

DISPOSAL OF HOUSING PRODUCT INTO THE MARKET FOR SALES

HOUSING DEVELOPMENT BEGINS WITH LAND CONVERSION AND SUBDIVISION PROCESSES OF

AGRICULTURE LAND FOR NEW HOUSING DEVELOPMENTAGRICULTURE LAND FOR NEW HOUSING DEVELOPMENT

CONTROL TOOL TO CHECKS URBAN SPRAWL AND

THE PROCESSES ARE RESULTED FROM THE INTERPLAY OF DECISION-MAKING BY VARIOUS AGENTS:

H SMALL SCALE AS WELL AS TOWNSHIP DEVELOPMENT

HOUSING DEVELOPMENT PROCESS

DISPOSAL OF HOUSING PRODUCTS INTO THE MARKET FOR SALES

– DEVELOPERS LAUNCH THEIR HOUSING PRODUCTS UPON GETTING DEVELOPER’S PERMIT

FROM THE LOCAL GOVERNMENT

– THE DEVELOPERS THEN, APPLIES FOR SDVERT

GOVERNMENT WHERE THE HOUSING DEVELOPMENT IS LOCATED

– THE HOUSING PRODUCTS ARE PUT INTO THE MARKET AT VARIOUS STAGES OF

DEVELOPMENT; I.E. VACANT HOUSING PLOT AFTER GETTING BUILDING PLAN APPROVALS;

DURING THE CONSTRUCTION STAGE; AND AFTER CONSTRUCTION COMPLETED AND THE

BUILDINGS ARE READY FOR OCCUPATION

HOUSING DEVELOPMENT PROCESS

DISPOSAL OF HOUSING PRODUCTS INTO THE MARKET FOR SALES

DEVELOPERS LAUNCH THEIR HOUSING PRODUCTS UPON GETTING DEVELOPER’S PERMIT

ERTISEMENT AND SALES PERMIT FROM THE LOCAL

GOVERNMENT WHERE THE HOUSING DEVELOPMENT IS LOCATED

THE HOUSING PRODUCTS ARE PUT INTO THE MARKET AT VARIOUS STAGES OF

DEVELOPMENT; I.E. VACANT HOUSING PLOT AFTER GETTING BUILDING PLAN APPROVALS;

DURING THE CONSTRUCTION STAGE; AND AFTER CONSTRUCTION COMPLETED AND THE