16642 Property Investment and Valuation

Description

This is a core subject usually taken in the second year of the Bachelor of Property Economics. The subject focuses on property investment and valuation for various types of properties and stakeholders, mainly using discounted cash flow analysis. The subject encourages students to develop cash flow models for investment and valuation decisions, as well as to conduct sensitivity and scenario analyses using Excel software. Students learn through online activities, group discussions, software learning, and independent reading. Students should therefore have access to a laptop during Tutorials with Excel software.

The knowledge and skills learned from the subject have practical implications as they can assist students in making decisions in real-life investment projects. The contents of the subject include basic concepts of investment theory and financial mathematics, net present value, internal rate of return, and their applications. Factors that affect investment decisions will also be discussed.

Assessment is designed to assure students' proficiency in achieving the learning objectives of this subject. An in-class test measures students’ ability to perform basic financial calculations in real estate scenarios. Students are also required to select a real-life investment project for an Individual Assignment to apply knowledge learned from the classes. The final examination tests students' understanding of investment principles and problem-solving ability in making investment decisions. Students require a financial calculator for the in-class test and final examination.