Units

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Sample subject outline - Semester 1 2013

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

The estimation of value is a central component of a property economist's function. The ability to analyse property markets and estimate the most likely selling price is therefore essential for professional property trainees. This unit continues to develop your understanding and experience of the valuation process. Together with the other valuation and analysis units during the course, it lays the foundations for students to understand and estimate value of commercial property assets.

Aims

The unit builds on your previous knowledge and skills developed through Principles of Valuation as well as legal and economic foundation units. The aim is to provide you with an array of knowledge and skills appropriate to a valuer of freehold investment class properties as well as terminable and other property rights and interests.

Objectives

Upon completion of this unit
1. You will be familiar with a range of theoretical and practical skills for the valuation of varied investment property interests.
2. You will further develop valuation report writing and presentation skills.
3. You will be able to produce reasoned opinions of value for a range of investment quality properties and other property interests.
4. Based on a solid understanding of the primary traditional and contemporary valuation methods, you will become proficient in the process of critical analysis which will help to develop an awareness of the limitations as well as the benefits of individual valuation methods with reference to particular property interests.

Content

Revision of introductory valuation concepts;
Overview of property sectors with a particular focus on the industrial sector;
Time value of money concepts;
Investment valuation methodologies including capitalisation, hypothetical development and discounted cash flow analysis;
Valuation of assets with varying income streams and diminishing assets;
Valuation of leasehold interests;

Approaches to Teaching and Learning

Interactive lectures, a field trip and individual private study will be used in combination to provide an appropriate blend of theoretical and practical learning experiences.

Teaching Mode: Hours per week: 3 (+ 1 field trip during the semester).

The interactive lectures will provide you with the basic investment valuation theory and an application of the theory to practical scenarios. You will also be given opportunities for interactive discussion of aspects of the unit.

Assessment

The assessment for this unit follows the assessment policy stated in section 5.1.1 Manual of Policies and Procedures (MOPP).You will be able to discuss your progress with your lecturer and tutor during the semester.

Assessment name: Report
Description: The report is a full valuation report on an industrial property in Brisbane, and comprises an industrial property valuation report, including a detailed analysis of the Brisbane industrial property market.
Relates to objectives: 2. You will further develop valuation report writing and presentation skills.
3. You will be able to produce reasoned opinions of value for a range of investment quality properties and other property interests.
Weight: 50%
Internal or external: Internal
Group or individual: Group
Due date: Week 13

Assessment name: Examination (Theory)
Description: A written examination of all elements of the UDB242 curriculum.
Relates to objectives: 1.You will be familiar with a range of theoretical and practical skills for the valuation of varied investment property interests.
2. Based on a solid understanding of the primary traditional and contemporary valuation methods, you will become proficient in the process of critical analysis which will help to develop an awareness of the limitations as well as the benefits of individual valuation methods with reference to particular property interests.
Weight: 50%
Internal or external: Internal
Group or individual: Individual
Due date: Week 8

Academic Honesty

QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.

A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.

Resource materials

TEXTS
'Valuation Principles and Practice' - published by the Australian Property Institute.
'Professional Practice' - Guidance notes published by the Australian Property Institute.
'Glossary of Property Terms' - published by the Australian Property Institute.
'Property Valuation and Analysis' R.T.M. Whipple
'Spreadsheet Modelling in Corporate Finance' Martin Hovey

JOURNALS
'Australian Property Journal' - The official journal of the Australian Property Institute.
'Property Australia' - The official journal of the Property Council of Australia.

OTHER RESOURCES - Additional Costs
Students will require a Sharp EL-735 Business/Financial Calculator.

Risk assessment statement

The unit will involve one field trip. Students will be fully advised on relevant risk management issues prior to our visit. There are no out of the ordinary risks associated with this unit.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 19-Oct-2012