Why do the private developers want to select commercially viable sites for housing development?
Question
Why do the private developers want to select commercially viable sites for housing development?
Solution
Private developers often select commercially viable sites for housing development for several reasons:
-
Profitability: The primary reason is profitability. Commercially viable sites are typically in areas with high demand for housing. This means that the properties developed on these sites are likely to sell quickly and at a high price, leading to a good return on investment for the developers.
-
Access to Amenities: These sites are often located in areas with good access to amenities such as shops, schools, and public transport. This makes the properties more attractive to potential buyers, increasing the likelihood of sales.
-
Lower Risk: Commercially viable sites are usually considered lower risk. This is because they are often in established areas with a proven demand for housing. This reduces the risk of the properties not selling.
-
Financing: It's often easier for developers to secure financing for projects on commercially viable sites. Lenders are more likely to provide funding for projects that they consider to be a safe investment.
-
Planning Permission: In many cases, it may be easier to obtain planning permission for a commercially viable site. This is because the local authorities are likely to be supportive of development that contributes to the local economy.
-
Future Growth: Finally, these sites often have good prospects for future growth. This means that the properties developed on these sites are likely to increase in value over time, providing a good long-term investment for both the developers and the buyers.
Similar Questions
A town plans to attract new citizens with new housing and new facilities such as parks, recreation centres and libraries. One component of the town’s plans is to require that development seeking permission is to build this new housing to provide these additional facilities at no cost to the town.Which of the following, if true, would point to a possible flaw in the town’s plan?Choices:- Developers would pass along their costs to the buyer; thereby raising the cost of housing units beyond the ability of likely purchasers to afford them. Light, non-polluting industries have located in the area, offering more jobs and better paying jobs than do the more established industries in the area. Other towns and cities nearby have yet to embark on comparable plans to attract new citizens Most developers see the extra expense of providing municipal facilities as simply one of the many costs of doing business.
Q4. Why does the government involve private companies to provide some public facilities?
What motivations typically cause firms to initiate a facilities location or relocation project? Discuss.
Recently in a small city, building contractors lobbied the city munipality to pass a law requiring all people working on residential dwellings be licensed. Why would the contractors lobby for this requirement?a.to reduce the cost of building dwellingsb.There is no good explanation for this type of lobbying.c.to guarantee that work on dwellings is of high qualityd.to create a legal barrier to entry
Why do housing problems become more severe in urban areas during urbanization?(2 Points)Abundant building materials and financial resourcesRapid expansion of housing facilitiesLarge influx of rural job seekersAmple space for housing and public utilities
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.