Property Resource Analysis

This subject has the following teaching availabilities in 2013:

150 hours

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This final year, core subject for the Bachelor of Environments, property major, examines the economic, physical/environmental, financial and legal aspects relating to the analysis of property – both quantitative and qualitative – leading to effective property resource allocation. It draws together the prerequisite analytical approaches required for effective study in the subsequent capstone studio and graduate subjects relevant to high order support for client decision-making within a dynamic commercial property markets context.

This subject is particularly relevant as the basis to commercial (income) property valuation, finance, investment and development feasibility decision-makings. At the core of the subject is a “cash-flow” approach to property resources and analysis. The cash flow method is a technical system which the decision maker often requires, because it explicitly analyses expected cash flow income of a property project over its life cycle or holding period. The risk and return trade-off is studied under the valuation and investment evaluation framework to guide resource allocation choices.

Topics include: property resources, income valuation, commercial property market, DCF modelling, effect of finance and taxation, land use and land value, building and costs, cash flow risk and return, enterprise and investment evaluation, capital market and indirect property, cost-benefit analysis and decision-making framework in a property context.

Upon the completion of this subject student should be able to:

• Understand the character and role of property resource analysis systems and practices across a range of property types from a range of stakeholder perspectives;
• Be aware of the social, legal, economic and environmental impacts of property resource analysis and of anticipated emerging opportunities;
• Access, interpret and communicate data relevant to property resource issues.

More specifically, you should be able to develop your capacity to:

• Model property valuation and investment financial flows;
• Understand the principles & techniques of property and asset valuation and analysis;
• Understand the effect of taxation and finance on property investment and development.

• 1 x 3 hr exam - 60% - due end of semester - (equivalent 3, 000 words)
• 1 x written assignment - 20% - due week 6 - (equivalent 1, 500 words)
• 1 x written assignment - 20% - due week 12 - (equivalent 1, 500 words)

A minimum grade of 40% must be achieved in the examination in order to pass the subject.

Valuation of Real Estate by Australian Property Institute, 2007 edition.
Property Valuation and Analysis by Whipple RTM, 2nd ed. Law Book Company, Sydney, 2006.

This subject potentially can be taken as a breadth subject component for the following courses:

• Bachelor of Arts
• Bachelor of Biomedicine
• Bachelor of Commerce
• Bachelor of Environments
• Bachelor of Music
• Bachelor of Science
• Bachelor of Engineering

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

Upon successful completion of this subject students will have had the opportunity to develop the following generic skills:

• Analytical skills - an enquiring and analytical approach to the determination of appropriate property resource allocation decisions;
• Communication skills - an enhanced ability to communicate analysed interpretations of property resource allocation outcomes through written and oral presentations;
• Problem solving skills - an increased body of knowledge associated with resolution of contemporary issues and practices in property resource allocation;
• Team working skills - an enhanced ability to generate and communicate a range of relevant property resource analysis practices and procedures at an appropriate academic and professional standard.