Demand & supply affecting redevelopment Q5

Q.
Redevelopment occurs when the present value of the current use is less than the capital value of the proposed site. By using an example of residential property,

a) Explain how changes in demand would affect the expected income from a property. (10 marks)

b) Explain how changes in supply would affect the operating costs of a property. (10 marks)

(20 marks, 2019 Q5)

A.

Ref: