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PDM611S - PROPERTY DEVELOPMENT AND MARKETING - 2ND OPP - JULY 2025 |
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n Am I BI A u n IVER s I TY
OF SCI En CE Ano TECH n OLOGY
FACULTYOF ENGINEERINGAND THE BUILTENVIRONMENT
DEPARTMENTOF LANDAND SPATIALSCIENCES
QUALIFICATION(S): BACHELOR OF PROPERTYSTUDIES
DIPLOMA IN PROPERTYSTUDIES
QUALIFICATION(S)CODE: 08BOPS
06DIPS
NQF LEVEL: 6
COURSECODE: PDM611S
COURSENAME: PROPERTYDEVELOPMENT AND
MARKETING
EXAMS SESSION:JULY 2025
PAPER:
THEORY
DURATION: 3 HOURS
MARKS:
100
SECONDOPPORTUNITY/SUPPLEMENTARYEXAMINATION QUESTION PAPER
EXAMINER(S) MR SAMUELATO K. HAYFORD
MODERATOR: MR AMIN !SSA
INSTRUCTIONS
1. Read the entire question paper before answering the Questions.
2. Please write clearly and legibly!
3. Please STARTEACHQUESTION ON A FRESHPAGE.
4. The question paper contains a total of 4 questions.
5. You must answer ALLQUESTIONS.
6. Make sure your Student Number is on the EXAMINATION BOOK(S}.
PERMISSIBLEMATERIALS
1. Non-programmable Scientific Calculator
THIS QUESTION PAPERCONSISTSOF 5 PAGES(Including this front page)
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Property Development and Marketing
PDM611S
Question 1
For each of the following statements indicate whether it is 'TRUE' or 'FALSE'. Each correct answer carries 1
mark.
1.1 Key factors providing indicators of the health of the national economy include income levels,
interest rates and new construction and employment.
1.2 An estate agent has no duties to third parties because his primary responsibility in an agency
relationship is only to the principal (the seller).
1.3 The appraisal process requires the appraiser to collect, record and verify data in all neighbourhoods
in the city within which the appraiser is unfamiliar.
1.4 Key information in real estate market analysis includes demographics and economic data as well as
demand and supply data for property type and market segment data for the subject property.
1.5 Generally, the key elements to be analysed in real estate market research can be classified as
physical (environmental), economic, social or governmental. These forces function independently in
the market place to shape the climate of the area and the performance of the subject property.
1.6 Though a series of approval processes are involved in new developments, government agencies can
have a very limited effect on the timing and costs of new development by development
requirements.
1.7 To be considered comparable to the subject property, a comparable must have been sold without
any form of secondary financing.
1.8 One of the functions of real estate markets is to expand or contract space to meet changing
conditions.
1.9 In real estate market analysis, the effects of social factors.may be evident in observable facts such as
occupancy levels, price levels, property appearance, tenant turnover and rent levels.
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Property Development and Marketing
PDM611S
1.10 Some firms spend more money than others on rent to secure locations close to important economic
centres because they need to avoid transportation cost to the centre.
1.11 For a specific property development project, market research is important in getting to know the
relevant clientele in a specific real estate sub-market and respond to their needs with a suitable
product offering.
1.12 It is the responsibility of the agent or salesperson to advise and assist, the seller has extremely
limited rights in determining the listing price of the property for sale.
1.13 The real estate market is not a single market but consists rather of a series of submarkets with
different needs and desires that can change independently of one another.
1.14 With an exclusive right to sell listing, the seller employs only one agent and must pay that agent a
commission regardless of whether it is the agent or the seller who finds a buyer provided the buyer
is found within the listing period.
1.15 Under an exclusive agency listing, the agent is given the exclusive right to represent the seller, but
the seller can avoid paying the agent a commission by selling the property to someone not procured
by the agent.
1.16 If a multiple-listing provision does not appear in an exclusive right to sell listing or an exclusive
agency listing, it deprives the agent of an authority to distribute the listing to other members of the
agent's multiple listing-organisations.
1.17 For a specific property development project, market research is important in getting to know the
relevant clientele in all the general real estate markets and respond to their needs with a suitable
product offering.
1.18 Though it is the responsibility of the agent or salesperson to advise and assist, the seller has very
limited right in determining the listing price of the property for sale.
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Property Development and Marketing
PDM611S
1.19 When the supply of a certain type of real estate is short, rents and prices may be high, but only
temporary. New competition will add to the supply and drive prices down.
1.20 Real estate market analysis has the potential to identify some features lacking in the existing supply
of properties, which if included in the proposed project, will offer a competitive advantage.
1.21 Financial analysis is crucial and should be conducted in real estate investment decisions to ensure
what is being planned is actually feasible.
1.22 Rental revenues can be estimated by looking at comparable properties in the market and
benchmarking existing rental rates. Leasing brokers are the best sources for this type of information.
1.23 Tenants sometimes receive rent concessions or special inducements from property owners. This is
normally related to periods where vacancies are particularly high.
1.24 The real estate market is not a single market but consists rather of a series of submarkets with·
different needs and desires.
[24]
Question 2
2.1 Economic Based Analysis (EBA) is based on the assumption that basic employment drives changes in
total population, total employment and sustainability of the property market in a study area.
Discuss.
(12)
2.2 Favourable demand and supply conditions (economic considerations) is inconclusive of successful
property development in a particular market. Several other factors may cause a project to be
aborted or unduly delayed. Highlight the factors necessary for consideration in the evaluation of
project constraints.
(6)
2.3 Besides the number of potential purchasers of goods and services, mention any four factors that
influence demand for real estate.
(2)
[20]
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Property Development and Marketing
PDM611S
Question 3
Two investment opportunities are available to you, with the expected income flows as follows:
Year
1
2
3
4
5
Investment Options
I1
Beach Front Apartment (N$)1M Plaza Hotel (N$)
-----~9,ooo
7,soo :
I 8,200
I
6,soo_l
6,soo
9,ooo _;
_ ~o,so.9,
11,300 !
Beach Front Apartment may be purchased for N$125 000 and M-Plaza Hotel for N$120 000. In 5 years'
time, the investments are expected to sell for N$175 000 and N$ 180 000 respectively. If you require a 12%
return on capital, which investment would be preferable?
(16)
[16)
Question 4
4.1 Identify and briefly explain the four (4) powers vested in the Namibian Estate Agent Board.
(8)
4.2 Outline the six (6) circumstances under which the Namibia Estate Agent Board may disqualify an
agent
(6)
4.3 Elaborate on the factors that constitute "effective cause" of transaction.
(8)
4.4 Elaborate on the four (4) aspects of qualifying the buyer by an estate agent.
(8)
4.5 List three (3) penalties that are likely to be imposed on estate agents if found guilty of a misconduct.
(3)
4.6 Distinguish between a 'Sales agent' and a 'letting agent'.
(4)
[40]
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