The aim of this paper is to analyze the cause of occurrence of undeveloped land using the method of economic feasibility analysis. This research is composed of three steps. The first step is to study the papers about the method of economic feasibility...
The aim of this paper is to analyze the cause of occurrence of undeveloped land using the method of economic feasibility analysis. This research is composed of three steps. The first step is to study the papers about the method of economic feasibility analysis. The second step is to select sites for case study and to presume the sale area of case study sites assuming maximum capacity-rate. The third step is to analyze the profitability of each case study sites.
This paper finds that all case study sites show low profitability in present condition. The major factor of low profitability is a low rate of sale in lots. It means that high profitability needs a high rate of sale in lots and a high rate of sale in lots is due to low sales prices. The increase of sale in lots rate needs low price of sale in lots by the discount of land purchase price.
This paper suggests an alternative for low price of sale in lots. The alternative is to discount purchase price of land.