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Course profile

Real Estate Finance (FINM3406)

Study period
Sem 1 2025
Location
St Lucia
Attendance mode
In Person

Course overview

Study period
Semester 1, 2025 (24/02/2025 - 21/06/2025)
Study level
Undergraduate
Location
St Lucia
Attendance mode
In Person
Units
2
Administrative campus
St Lucia
Coordinating unit
Business School

This course is designed to give students a detailed understanding of real estate finance and investment. Topics will include real estate financing strategies, investment decision making, mortgage-backed securities and real estate capital markets. While the course draws heavily on important concepts from corporate finance and investment theory, special emphasis is placed on the distinctive features of real estate as an asset class. In particular, the course examines how these features impact investment choices and portfolio decision making relative to financial assets, such as stocks and bonds, for institutional investors. Since real estate is closely linked with finance and economics, this course will have a quantitative emphasis.

This course explores the role of property as an investment class; Why we invest in property, What classes of property are there, and Why we diversify across those property types. We look at real estate funding arrangements, the impact of sustainability upon real estate useᅠand investment, financial modelling and risk assessment of property investments. The course will allow students to differentiate between the relative merits of direct and indirect property investment within a portfolio. Students will evaluate investment options and criteria, and acquire the tools to effectively evaluate the financial aspects of property projects.

Course requirements

Prerequisites

You'll need to complete the following courses before enrolling in this one:

(FINM2415 + 2416) or (FINM2411 + 3412)

Course contact

Course staff

Lecturer

Timetable

The timetable for this course is available on the UQ Public Timetable.

Additional timetable information

Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:

  • Full name
  • Student ID
  • Course Code

Aims and outcomes

This course aims to provide students a detailed understanding of real estate finance and investment and the role of property as an asset class. Students will learn how to critically eveluate the role that property plays as an investmentᅠvehicle and to analyse investmentᅠand financing opportunities. The course will examine the differeing roles that direct and indirect property investment has and the mechanisms for financing property transactions.

Learning outcomes

After successfully completing this course you should be able to:

LO1.

Understand factors that impact real estate markets

LO2.

Analyse financial data in order to assess performance in real estate markets

LO3.

Explain and evaluate risks associated with real estate

LO4.

Evaluate techniques for portfolio management in real estate

Assessment

Assessment summary

Category Assessment task Weight Due date
Examination In Semester - multiple choice exam
  • Online
20%

29/03/2025 12:00 pm

Paper/ Report/ Annotation Group Report - Evaluation of Real Estate Project
  • Team or group-based
40%

23/05/2025 3:00 pm

Examination End of Semester - Final Exam
  • Identity Verified
  • In-person
40%

End of Semester Exam Period

7/06/2025 - 21/06/2025

Assessment details

In Semester - multiple choice exam

  • Online
Mode
Written
Category
Examination
Weight
20%
Due date

29/03/2025 12:00 pm

Other conditions
Time limited.

See the conditions definitions

Learning outcomes
L01, L02, L04

Task description

The exam will be open from 12 midday on 28 March for 24 hours, due by 12 midday 29 March on Blackboard. Exam duration is 60 minutes from commencing the exam.

AI Statement:

The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.

Exam details

Planning time no planning time minutes
Duration 60 minutes
Calculator options

Any calculator permitted

Open/closed book Open Book examination
Exam platform Other
Invigilation

Not invigilated

Submission guidelines

Exam will submit automatically after 60 minutes.

Deferral or extension

You may be able to defer this exam.

Late submission

Exams submitted after the end of the submission time will incur a late penalty.

Group Report - Evaluation of Real Estate Project

  • Team or group-based
Mode
Written
Category
Paper/ Report/ Annotation
Weight
40%
Due date

23/05/2025 3:00 pm

Other conditions
Peer assessed.

See the conditions definitions

Learning outcomes
L01, L02, L03, L04

Task description

Group Report - students will form groups of 4 or 5 to complete a hypothetical analytical report about a real life real estate Rent development project.

The Report is to be prepared on behalf of a hypothetical potential investor who is seeking professional advice on the risks, issues and opportunities associated with acquiring, developing and holding/selling a proposed real estate development project.

The students will act as professional advisors to the hypothetical investor and prepare a 5,000 word (excluding bibliography) report that outlines their assessment of the project and its efficacy for their client as a real estate investment opportunity.

The details of the report must include:

  • An analytical description of the property and its proposed development attributes including observations on the concept, target demographic, design/layout, and overall viability of the project.
  • A discussion on the particular real estate market sector in Queensland which the subject property is part of and a comparative assessment of that market sector domestically and globally.
  • A risk assessment of the project identifying the primary strengths, weaknesses, threats and opportunities for the project.
  • An overview of the funding mechanisms available to the investor for the development.
  • High-level financial modelling of the project that includes financial performance metrics and an assessment of the target purchase price for the project.
  • Details of any assumptions required to be made and the basis for those assumptions.
  • Bibliography and referencing to Harvard standard.

The student will be required to complete a Self and Peer Review as part of this report.

Details of the specific site will provided in Week 7.

AI Statemenet:

This task has been designed to be challenging, authentic and complex. Whilst students may use AI technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance. A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct. To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.

Submission guidelines

Deferral or extension

You may be able to apply for an extension.

Late submission

A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.

End of Semester - Final Exam

  • Identity Verified
  • In-person
Mode
Written
Category
Examination
Weight
40%
Due date

End of Semester Exam Period

7/06/2025 - 21/06/2025

Other conditions
Time limited.

See the conditions definitions

Learning outcomes
L01, L02, L03, L04

Task description

Combination of multiple choice and short answer questions.

All topics covered through out the entire course may be examinable.

AI Statement:

This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.

Exam details

Planning time 10 minutes
Duration 90 minutes
Calculator options

(In person) Casio FX82 series only or UQ approved and labelled calculator

Open/closed book Closed Book examination - no written materials permitted
Exam platform Paper based
Invigilation

Invigilated in person

Submission guidelines

Deferral or extension

You may be able to defer this exam.

Course grading

Full criteria for each grade is available in the Assessment Procedure.

Grade Cut off Percent Description
1 (Low Fail) 0 - 29

Absence of evidence of achievement of course learning outcomes.

2 (Fail) 30 - 46

Minimal evidence of achievement of course learning outcomes.

3 (Marginal Fail) 47 - 49

Demonstrated evidence of developing achievement of course learning outcomes

4 (Pass) 50 - 64

Demonstrated evidence of functional achievement of course learning outcomes.

5 (Credit) 65 - 74

Demonstrated evidence of proficient achievement of course learning outcomes.

6 (Distinction) 75 - 84

Demonstrated evidence of advanced achievement of course learning outcomes.

7 (High Distinction) 85 - 100

Demonstrated evidence of exceptional achievement of course learning outcomes.

Additional course grading information

Grades will be allocated according to University-wide standards of criterion-based assessment.

Supplementary assessment

Supplementary assessment is available for this course.

Learning resources

You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.

Library resources

Find the required and recommended resources for this course on the UQ Library website.

Learning activities

The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.

Filter activity type by

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Learning period Activity type Topic
Week 1
Lecture

Lecture - Real Estate as an Asset Class

Learning outcomes: L01, L03

Week 2
Tutorial

Tutorial - Real Estate as an Asset Class

Learning outcomes: L01, L04

Lecture

Lecture - Real Estate Ownership Structures

Learning outcomes: L01, L03, L04

Week 3
Tutorial

Tutorial - Real Estate Ownership Structures

Learning outcomes: L01, L02, L04

Lecture

Lecture - Real Estate Ownership and Disposal

Learning outcomes: L01, L02, L03

Week 4
Tutorial

Tutorial - Real Estate Ownership and Disposal

Learning outcomes: L02, L03, L04

Lecture

Lecture - Real Estate Appraisal (Valuation)

Learning outcomes: L02, L03, L04

Week 5
Tutorial

Tutorial - Real Estate Appraisal (Valuation)

Learning outcomes: L01, L02, L03

Lecture

Lecture - Real Estate Development

Learning outcomes: L01, L02, L03

Week 6
Tutorial

Tutorial - Real Estate Development

Learning outcomes: L01, L02, L03

Lecture

Lecture - Financial Modelling

Learning outcomes: L02, L03, L04

Week 7
Tutorial

Tutorial - Financial Modelling

Learning outcomes: L02, L03, L04

Lecture

Lecture - Guest Lecturer - Portfolio Mgt

Learning outcomes: L01, L03, L04

Week 8
Tutorial

Tutorial - Guest Lecturer - Portfolio Mgt

Good Friday Public Holiday - Friday 18 April 2025 - Check Blackboard for announcements about affected classes.

Learning outcomes: L02, L03, L04

Lecture

Lecture - Debt & Equity Financing

Learning outcomes: L02, L04

Mid-sem break
No student involvement (Breaks, information)

In-Semester Break

Week 9
Tutorial

Tutorial - Debt & Equity Financing

Learning outcomes: L02, L04

Lecture

Lecture - Mortgages

Learning outcomes: L01, L02, L04

Week 10
Tutorial

Tutorial - Mortgages

Labour Day Public Holiday - Monday 5 May 2025 - Check Blackboard for announcements about affected classes.

Learning outcomes: L01, L02, L04

Lecture

Lecture - Guest Lecturer - Developer

Learning outcomes: L01, L03

Week 11
Tutorial

Tutorial - Guest Lecturer - Developer

Learning outcomes: L01, L03

Lecture

Lecture - Corporate Real Estate

Learning outcomes: L01, L02, L04

Week 12
Tutorial

Tutorial - Corporate Real Estate

Learning outcomes: L01, L02, L04

Lecture

Lecture - Sustainability in Real Estate

Learning outcomes: L01, L03, L04

Week 13
Tutorial

Tutorial - Sustainability in Real Estate

Learning outcomes: L01, L03, L04

Lecture

Lecture - Revision

Learning outcomes: L01, L02, L03, L04

Policies and procedures

University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:

Learn more about UQ policies on my.UQ and the Policy and Procedure Library.