Feasibility Study of Investment in a Housing Development Project in Mueng Nonthaburi District, Nonthaburi Province

Abstract

This research aims to study the feasibility of investment in a housing development project in Mueng Nonthaburi District, Nonthaburi Province, Thailand. The study applies the "Site Looking for Use" development approach, aiming to optimize the utilization of the available land. The land under consideration measures 10 rai 32.1 square wah. Based on the data collection and analysis, the land is classified as Zone K.1–K.3 according to the regulation, which permits only the construction of detached houses. As a result, this project involves the development of six types of detached houses, 38 units. Approximately 62% of the total area, will be allocated for sale, while the remaining land will be designated for communal use. The study results indicate that the total project cost is 260,033,888 baht, with total projected revenue from sales amounting to 393,990,740 baht. The project payback period is estimated at 12 months, and the Net Present Value (NPV) is 73,158,957 baht, which is greater than zero—indicating that the investment is worthwhile. The Internal Rate of Return (IRR) is calculated at 42.07%, which exceeds the opportunity cost of capital, further supporting the investment viability. Additionally, a sensitivity analysis was conducted to assess the project's resilience against potential risks, such as increased construction or land costs, or a decrease in housing sale prices. The analysis reveals that the project remains financially viable and attractive under all scenarios. Therefore, this development project is considered a worthwhile and highly promising investment.