17772 Real Estate Economics
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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 2025 is available in the Archives.
Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksDescription
Real estate economics applies economic theory and analytical techniques to real estate markets in order to describe, explain and predict patterns of prices, supply and demand. The latest economic thinking and research are used to analyse real estate market fundamentals, forecasting of supply and demand, and investor behaviour. Students acquire an understanding of land economics and the economic principles and policies that affect real estate markets, as this subject introduces students to principles of economics applied to those markets. Relevant concepts from microeconomics, macroeconomics, behavioural economics, corporate finance and industry economics are covered. Macroeconomic policy and the relationship between property and business cycles, in both historical and international contexts, are covered in depth.
Subject learning objectives (SLOs)
On successful completion of this subject, students should be able to:
| 1. | Understand the principles of economics and their application to real estate. |
|---|---|
| 2. | Apply concepts and approaches relevant to real estate from macroeconomics, microeconomics, transaction cost economics, behavioural economics and industry economics. |
| 3. | Reflect and engage in self-critique and critical thinking |
Course intended learning outcomes (CILOs)
This subject also contributes to the following Course Intended Learning Outcomes:
- Interpret, assess, and communicate complex knowledge to specialist and non-specialist stakeholders for positive outcomes in real estate investment. (C.1)
- Develop the capacity to perform with a high level of autonomy using expert judgement, accountability, creativity, and initiative to new scenarios in real estate investment practice. (P.2)
- Apply research and analytic skills to property investment contexts to demonstrate an advanced level of critical and reflective thinking. (R.1)
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
Real Estate Economics is structured and delivered through eight Modules in Canvas. The Program has the Module topics and required reading. The first Module is an introduction and explanation of the subject, then there are eight with recorded PowerPoint lectures on the Module’s topics.
We are basically substituting two Modules for a block day, replacing two hours of class lecture time with a lecture of narrated PowerPoint slides around 45 minutes and an hour or two of reading time. The reality of distance learning is self-directed study and more reading, You are expected to organize your own time over the semester. The subject can be done weekly over the semester allowing a couple of weeks for the assignments, or, if you are organising around the block structure, done two modules at a time. You should allow two to four hours for each Module.
Modules have set readings and supplementary readings. Set readings for five Modules are from a free online economics textbook by CORE Economics called The Economy, used as the subject’s set text. You register and get access to their web page here http://www.core-econ.org/. This is a widely used introductory text and is suitable for students without any prior studies in economics. For students who have done some Economics, the examples and explanatory boxes will be useful. Modules also have supplementary reading, links for extended research, and sources for further study. Library ebook and ddr links and pdfs for other set readings are provided.
The Introduction Module has a 30-minute recorded lecture on the subject content and assessment. Students are asked to watch that and introduce themselves to the class by posting a short 200-word biography on the Discussion board in Canvas at the beginning of the semester.
Content (topics)
- Principles of economics and the concepts of markets, demand, supply, and equilibrium
- The role of government in fiscal and monetary policies
- Land economics, urban economics and real estate markets
- Real estate, financial markets and macroprudential regulation
- Behavioural finance and investment
Assessment
Assessment task 1: Group data collection tasks
| Intent: | This is a group exercise in data collection and analysis, using Australian regional and industry data. Each group has one state, like NSW, Queensland, Victoria or Western Australia to report on. The data comes from ABS publications. Individual task contributions are worth 20% and the industry recommendations 10%. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 1 and 3 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.): .2 and R.1 | ||||||||||||
| Type: | Exercises | ||||||||||||
| Groupwork: | Group, individually assessed | ||||||||||||
| Weight: | 30% | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 2: Group report
| Intent: | The second task is the group report from task one | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Objective(s): | This task addresses the following subject learning objectives: 2 and 3 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.): .2 and C.1 | ||||||||||||
| Type: | Report | ||||||||||||
| Groupwork: | Group, group assessed | ||||||||||||
| Weight: | 10% | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Assessment task 3: Macroeconomics assignment
| Intent: | The third task builds on the first two. The state reports from the groups provide a national analysis of patterns of growth and decline across Australian cities and industries. In an individual assignment of 2,000 words you are to combine this industry and location data with macroeconomic data like GDP, productivity and the exchange rate to make a recommendation on a significant investment in Australian manufacturing real estate for a global fund manager that specializes in those assets. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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.2 and R.1 | ||||||||||||
| Type: | Report | ||||||||||||
| Groupwork: | Individual | ||||||||||||
| Weight: | 60% | ||||||||||||
| Criteria linkages: |
SLOs: subject learning objectives CILOs: course intended learning outcomes |
Minimum requirements
A mark of 50% is required to pass this subject.
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.
Required texts
Set readings for five Modules are from a free online economics textbook by CORE Economics called The Economy, used as the subject’s set text. You register and get access to their web page here http://www.core-econ.org/. Modules also have supplementary reading, links for extended research and sources for further study. Library ebooks and ddr links and pdfs for other set readings are provided.
Recommended texts
Adeney, R. 2018. Structural change in the Australian economy, Reserve Bank of Australia Bulletin March 2018.
Baddeley, M. 2013. Behavioral Economics and Finance, Abingdon: Routledge.
Baddeley, M. 2016. Behavioural Economics: A Very Short Introduction, Oxford: Oxford University Press.
Baum, A and Hartzell, A. 2012. Global Property Investment: Strategies, Structures, Decisions, Wiley-Blackwell.
Brett, D.L. 2009. Real Estate Market Analysis: Methods and case studies, Washington: Urban Land Institute.
Cabral, L. 2017. Introduction to Industrial Organization, 2nd ed., MIT Press.
Chang, H-J. 2010. 23 Things They Don’t Tell You About Capitalism, London: Bloomsbury Press.
Damodaran, A. 2012. Investment Valuation, New York: Wiley.
de Valence, G. 2019. Reframing construction within the Built Environment Sector, Engineering, Construction and Architectural Management, 26 (5) 740-745.
DiPasquale, D. and Wheaton, W. C. 1996. Urban Economics and Real Estate Markets, Englewood Cliffs: Prentice Hall.
Fainstein, S. S. 2001. The City Builders: Property Development in New York and London, 1980-2000, Lawrence: Uni. of Kansas.
Glaeser, E. 2011. Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier and Happier, New York: Penguin.
Haldane, A. 2018. Ideas and Institutions: A growth story. Bank of England.
Kahneman, D. 2011, Thinking Fast and Slow, Allen-Lane Penguin.
Kindleberger, C.P. and Aliber, R.Z. 2017. Manias, Panics and Crashes: A History of Financial Crises, 7th ed., Basingstoke: Palgrave Macmillan.
Linklater, E. 2014. Owning the Earth: The Transforming History of Land Ownership, London: Bloomsbury.
McDonald, J. and McMillan, D. 2011. Urban Economics and Real Estate: Theory and Policy, Mason: South-Western.
McKinsey Global Institute, 2019. The Future of Work in America: People and places, today and tomorrow.
Miller, N.G. and Geltner, D.M. 2005. Real Estate Principles for the New Economy, Mason, South-Western.
O’Sullivan, A. 2012. Urban Economics, McGaw-Hill.
Rowland, 2012. Australian Property Investment and Financing, Pyrmont: Thompson Reuters.
Saunders, T. and Tulip, P.2019. A Model of the Australian Housing Market, Reserve Bank of Australia, Research Discussion Paper.
Schiller, R. 2005. Irrational Exuberance. Princeton: Princeton University Press.
Thaler, R. and Sunstein, C. 2008. Nudge: Improving Decisions about Health, Wealth and Happiness,
Another useful online resource is the Nobel Prize for Economics. Winners of the Prize whose work is discussed in the lectures each have a web page with a short overview of their work and significance (5 pages), and a longer, more technical review (40 pages). The list of prize winners is here https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/.
References
Supplementary course materials will be posted to Canvas in the relevant Module.
Other resources
ABS 8155 Australian Industry 2018-19
ABS regional data https://itt.abs.gov.au/itt/r.jsp?databyregion
Bureau of Infrastructure Transport and Regional Economics
https://www.bitre.gov.au/national-cities-performance-framework#all_cities
The State of Australian Cities 2014–2015
https://www.infrastructure.gov.au/infrastructure/pab/soac/index.aspx