333-207 Introduction to Real Estate Analysis

316-101 Introductory Macroeconomics and either 333-101 Finance I or 333-201 Business Finance.

This subject applies the financial skills acquired in Finance I to analyse investments in residential and commercial real estate. A firm understanding of real estate markets is essential to these analyses. The subject will examine the operation of the markets for owner-occupied and rental housing, the operation of markets for commercial space for retail, office and industrial uses and the mortgage market. The lectures develop answers to questions such as: What is the role of uncertainty in determining real estate prices? Do demographic changes explain trends in home ownership? Why do some retail areas succeed and others fail? Where possible, data from Australian and world markets will be used to develop the answers to these questions and to illustrate the concepts presented in the lectures.

• High level of development: problem solving; application of theory to practice; synthesis of data and other information.

• Moderate level of development: written communication; statistical reasoning; interpretation and analysis; critical thinking; evaluation of data and other information; accessing data and other information from a range of sources.

• Some level of development: oral communication; use of computer software.

A 2-hour end-of-semester examination (70%) and written assignments not exceeding 3000 words (30%).