University of Technology Sydney

16680 Special Topics in Property

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp
Result type: Grade and marks

Requisite elaboration/waiver:

16234 Property Valuation, 16634 Financial Analysis, 16642 Property Investment and Valuation

Description

This is an elective subject that builds on students’ prior learning in property valuation, and financial and investment analysis to further develop their ability to apply valuation and financial theories to real-life commercial property investment scenarios. The subject has also been specifically designed to prepare students for the National University Real Estate Case Competition.

In this subject, students work in groups to present their recommendations for a commercial property acquisition scenario, using capitalisation and DCF methods. Students develop financial modelling skills and the ability to apply decision-making criteria such as IRR and NPV. The property acquisition decisions are also supported by the appropriate financing strategies. Presentations receive feedback from fellow classes and panels.

Subject learning objectives (SLOs)

On successful completion of this subject, students should be able to:

1. Apply real estate investment and finance theories and valuation techniques in real-life scenarios.
2. Construct financial models to assess real estate investment opportunities using IRR / NPV decision criteria.
3. Analyse, structure, and report the findings from research and financial modelling.
4. Work effectively with team members and communicate verbally and in writing professionally.

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

  • Effectively apply a variety of communication skills and technologies in professional contexts (C.1)
  • Work effectively in a team in a professional context (C.2)
  • Apply valuation theory and practice in the valuation of property for different purposes (P.1)
  • Analyse data to make investment decisions in various contexts (P.2)
  • Critically analyse, structure and report the results of research (R.3)

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

Teaching and learning strategies

This subject is delivered in two 2-day blocks across April and May. Student learning experiences consist of self-directed reading, attending lectures, workshops, groupwork, short-answer questions, presentations, peer reviews, and writing a report.

In the first block, the class will work on a sample case study together. Where relevant, lectures will be delivered focusing on the decision-making process in real estate investment, time value of money, application of IRR & NPV concepts, financial model construction, valuation principles using capitalisation and DCF methods, and financing strategies. Groups will be formed for Assessment Tasks 2&3.

After the first block, students will receive an online test with five short-answer questions on the topics covered in the first block. The main case study for Assessment Tasks 2&3 will also be released.

In the second block, students will present in groups their recommendations on the case study questions and receive feedback from their peers and the lecturer. Students will then incorporate the feedback received into their final presentation and report.

This subject also helps students develop academic and professional communication skills to succeed at university and in the workplace.

Content (topics)

  • Decision-making in real estate investment
  • Time value of money
  • Application of IRR & NPV concepts
  • Commercial property cashflow concepts
  • Valuation principles (capitalisation and DCF)
  • Financing strategies
  • Group work and presentation

Assessment

Assessment task 1: Short-answer questions

Intent:

This assessment aims to facilitate students’ understanding of the decision-making process in commercial real estate investment and their ability to apply the relevant concepts such as the time value of money, valuation methods, etc.

Objective(s):

This task addresses the following subject learning objectives:

1 and 4

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1 and R.3

Type: Quiz/test
Groupwork: Individual
Weight: 15%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Demonstrate understanding of real estate decision-making and the application of relevant concepts 80 1 P.1
Clear writing and coherent reasoning 20 4 R.3
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 2: Group presentation

Intent:

The assessment aims to evaluate students’ ability to solve real-life commercial property investment and finance problems and develop communication and presentation skills in reporting on recommendations for the case study questions.

Each team will be strictly limited to 5-6 students and 15 minutes in time for each presentation. Assessment Task 2a will be the trial run presentation and Assessment Task 2b will be the final presentation. The case study questions for Assessment Tasks 2 & 3 will be released two weeks prior to the second teaching block.

The team will be assessed on the analysis as well as the quality of the overall presentation. Refer to the assessment document for more details.

Objective(s):

This task addresses the following subject learning objectives:

1, 2 and 4

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

C.1, C.2, P.1 and P.2

Type: Presentation
Groupwork: Group, group assessed
Weight: 40%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Evidence of understanding and application of the real estate investment decision-making framework 10 1 P.1
Ability to present findings from market analysis and financial modelling 15 2 P.2
Quality of presentation in terms of design of visual aid (slides etc.), professional appearance, voice projection etc. 30 4 C.1
Ability to apply valuation techniques to assess investment opportunity 15 1 P.1
Teamwork demonstrated in terms of individual participation, demonstrated ability to provide professional and constructive feedback for another groupís presentation, the ability to address panel questions in a professional manner, incorporating peer and lecturer feedback into the final presentation etc. 30 4 C.2
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 3: Group report and team reflection

Intent:

The aim of this assessment is to evaluate students’ ability to report on outcomes of market and financial analysis, and to facilitate students to reflect on their teamwork experiences.

Assessment Task 3a will be the Group Report (2,000 words) and Assessment Task 3b will be the Team Reflection, in the form of an essay (1,000 words). The case study question for Assessment Tasks 2 & 3 will be released two weeks prior to the second teaching block.

Objective(s):

This task addresses the following subject learning objectives:

1 and 2

This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.):

P.1, P.2 and R.3

Type: Report
Groupwork: Group, group and individually assessed
Weight: 45%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Appropriately address the case study and essay questions, and correctly apply relevant concepts involved with valuation techniques, financing strategies, and IRR/NPV as decision criteria 30 1 P.1
Evidence of data and information collection through research, and demonstration of creative and critical thinking 20 2 P.1
Quality of Report and Reflection Essay, in terms of format, language use, referencing etc. 30 2 R.3
Demonstrate the ability to construct financial models and interpret results for decision-making (3a only) 20 2 P.2
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Minimum requirements

The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.

Due to teamwork, 100% attendance is required for this subject.

Penalty will be applied for later submission of assignments.

Recommended texts

Jaffe, A.J. and Sirmans, C.F. (2001) Fundamentals of real estate investment, 3rd edition, South-Western Thomson Learning.

References

Professional Reports:

Knight Frank: http://www.knightfrank.com.au/research/

Colliers: https://www.colliers.com.au/en-au/countries/australia/our-research

CBRE: https://www.cbre.com.au/insights

JLL: https://www.jll.com.au/en/trends-and-insights/research

Government Agencies:

Reserve Bank of Australia: https://www.rba.gov.au/

Australian Bureau of Statistics: https://www.abs.gov.au/

Other resources

Referencing: In the Faculty of DAB, referencing is done using the APA 7th edition referencing style.

Referencing is a standardised method of acknowledging sources of information and ideas that you have used in your assignments or research, in a way that uniquely identifies the source. It is not only necessary for avoiding plagiarism but also for supporting your ideas and arguments.

The UTS Library has developed additional support materials to guide students in the use of the APA referencing style.

Further support may be accessed via visiting the following link:

https://www.lib.uts.edu.au/help/referencing/apa-referencing-guide