Refurbishment Vs Redevelopment In Malaysia Construction Essay

Refurbishment Vs Re ontogeny In Malaysia Construction EssayMalaysia space grocery has experienced a drastic change in 2008. The property market moved from a boom at the end of 2007 to uncertainties due to increase construction cost. Finally, the property market moved into a relatively pocket-size-key market towards the end of 2008. With all the sticks trying to tighten their loan terminations, obtaining loans for development of all types of commercial building have been difficult in the net three classs.Yet, sketch shows that in that respect is still a high indigence for space in dresser building in ara equivalent Kuala Lumpur. From time to time, there ar several(prenominal) developments of new bit buildings in Klang Valley area. From the psychoanalyse by with(p) by JPPH, there is an increase of somewhat 10 million square metres of new spotlight space end-to-end Kuala Lumpur. Yet, the average va heapcy rate in place space lessen to 18.6%. This proved that the demand for office building is still able to allow the increase in new office space. Study similarly showed that there is a new supply of approximately 280,000 square metres of new office space and additional 92,000 square metres of office being refurbished and repositioned in the year of 2009. So, building owners have to struggle to maintain the popularity and the competitiveness of their building. The current need of new-build development raises the likelihood of grade-A supply shortages when the occupier market returns, creating investment opportunities for carefully targeted regaining. notwithstanding, usually owner is in great dilemma when they are in such situation. As everyone know, the overhaul of office space offers advantages over new-build which can facilitate the achievement of economic, social and environmental sustainability. But, redevelopment is the ultimate radical for eliminating all problems regarding the maintenance, changing tenants requirement and other p robems.Making comparisons between redevelopment and redevelopment is also problematic beca call the term refurbishment can be used to encompass a wide spectrum of building works, from minor augmentative improvements through to extensive reconstruction. But, in the majority of results, refurbishment will be a quicker and cheaper means of restoring second-hand office space to grade-A specification. As a low-cost option, the refurbishment of office space should be intuitively personable in an economic climate marked by a neediness of development finance. But in many cases refurbishment is as expensive as redevelopment and likely to carry with it greater risks and physical constraints. worry statementMalaysian has been accused as a clever constructor but poor carriage. For example, certain office buildings in Golden trilateral are often looked deteriorated and relatively matured compared to other purposed-built office building. exercising of such older office buildings are thos e office building run acrossd on the fringe of Central Business District, like Jalan Ampang. These older office buildings have a higher tendency to be left trifling due to its poor office building images. This will leads to lower rental rate to be paid by the tenants to remain its competitiveness. Other substantial characteristic of such office building also includes by low occupancy rate, lower quality of the building and services provided.Besides, recent office developments are very likely to adopt green features such as energy saving, reduction of wastage and water usage, as well as the use of environmentally friendly materials. This new trend in development had pressure many owners evaluate the condition of their building and try to make several changes to the buildings to attracts much tenants. These efforts are important to attract corporations who fascinate energy-saving and environmental-friendly building.But fashioning such decision is not easy. The owners have to e valuate the cost and emolument of each choice, and determine the solution he desires to improve the condition of his buildings. But other factors also have to take into consideration. For example, the rate of interest the bank would charge for development of different risk, the time of completion and others also greatly affect the decision- fashioning of ownerObjectives of studyThis study has three main objectives. at that place areTo determine factors influencing the decision-making in deriving a solution to the manner chosen.To identify the returnss of building refurbishment or redevelopment to the building users.To determine whether tenant likes refurbished secondary office building or newly redeveloped building. range of mountains of studyThe scope of this study will focus on selected office buildings, both building which had undergo refurbishment and those which had undergone redevelopment. To ensure a more complete study, the newly constructed building is also considered a s building undergone redevelopment.The respondents of the questionnaire are limited to tenants in Golden Triangle area only. As for the property manager, all property managers can be chosen as the interviewee. twist manager who are hired by owners and acted on behalf of them, will gives their opinions in owner perspectives (maximise profit) and current tenants will voice out their p quotations in choosing a building space.MethodologyAll the relevant data are smooth through primary data and secondary data.Primary data includes questionnaire, samplings, interviews and case study. In this study, respondents identified in questionnaire study are selected property manager who represents building owners point of view and some tenants at bottom Golden Triangle area through sampling. As for interview session, interviewees targeted are property manager who are the representatives of building owners. Through this interview sessions, benefit of building refurbishment and redevelopment will be ascertained. Finally, case study of three similar office buildings will also be done as the quantitative epitome. All three building will be compared according to the cost incurred for construction and the benefit obtained. Then the differences in term of occupancy rates, rental and others will be calculated to represent the emergence in term of market value.On the other hand, collection of data in this study will also includes references such as reference book, journal, articles, conference paper, property market reports, internet/ website searching and other sources.In addition, data will also be collected from books, magazines or newspaper publisher article to obtain general information on building refurbishment and the effects of building refurbishment.Further details of methodology will be discussed in Chapter 3.Structure of StudyThis study consisted of five chapters. The brief give-and-take of each chapter is discussed as followsChapter 1Chapter 1 is the introduction of the study. This chapter starts with an introduction of this study with a brief background. Besides, other things like problem statement, scope of study, methodology and others are also discussed in this chapter.Chapter 2Chapter 2 is about the publications review. In this chapter, definition of building refurbishment and redevelopment, benefit of building refurbishment and redevelopment and others will be discussed in this chapter. Besides, factor influencing decision making of building refurbishment and the tenant preferences will also be discussed.Chapter 3Chapter 3 is the methodology. In this chapter, methodology used to survey and interview in order to gather information needed. The structure of questionnaire is also discussed in this chapter. Furthermore, a brief discussion on the opinion of respondents of questionnaire and interviews will also be carried out in the last part of this chapter.Chapter 4Chapter 4 is the chapter regarding inquiry findings analysis. In this chap ter, data gather will be analysed and presented in this chapter. An analysis on the benefit of building refurbishment and its value-enhancing ability will also be carried out by studying the information gathered through interviews, questionnaire survey, and secondary data.Chapter 5Chapter 5 discuss about the conclusion and recommendation. In this chapter, conclusion from the findings and analysis of data in the previous chapter will be discussed and summarized. Besides, it also illustrate on the confirmation of the objectives and overall summary for the all told study. Other information included in this chapter is the suggestions for further study.