USB144 Investment Valuation
To view more information for this unit, select Unit Outline from the list below. Please note the teaching period for which the Unit Outline is relevant.
| Unit code: | USB144 |
|---|---|
| Prerequisite(s): | USB140 or USB142 |
| Antirequisite(s): | USB242 |
| Credit points: | 12 |
| Timetable | Details in HiQ, if available |
| Availabilities |
|
| CSP student contribution | $2,124 |
| Pre-2021 CSP student contribution | $1,663 The pre-2021 commonwealth supported place (CSP) contribution amount only applies to students enrolled in a course prior to 2021. To learn more, visit our Understanding your fees page. |
| Domestic tuition unit fee | $3,204 |
| International unit fee | $4,512 |
Unit Outline: Semester 2 2025, Gardens Point, Internal
| Unit code: | USB144 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | USB140 or USB142 |
| Anti-requisite: | USB242 |
| Coordinator: | Jason Chia | jc.chia@qut.edu.au |
Overview
Investment Valuation is an intermediate unit in the Property Economics degree. The unit builds on the preliminary property fundamentals covered in USB142 Residential Valuation, expanding those key concepts to income producing and investment grade assets. This unit develops an understanding of the various commercial market sectors and how various features of these markets impact on the value of a property asset. The valuation methodologies used to value investment grade assets are also applied.The knowledge of this unit will be further developed in USB245 Property Investment Analysis, USB247 Money and Property and USB345 Specialised Valuation.
Learning Outcomes
On successful completion of this unit you will be able to:
- Analyse property markets and the drivers of commercial or industrial property value.
- Apply valuation methodologies to determine the value of investment property.
- Interpret, critically analyse and synthesise data relevant to property investment market.
- Prepare and present written and visual information for a range of stakeholder perspectives including clients, consultants, colleagues, regulators, investors and developers at an introductory professional standard.
- Collaborate to contribute to team work outcomes
Content
Learning outcomes will be achieved through coverage of the following topics:
- Time value of money
- Capitalisation valuation methodology
- Highest and best use/income earning potential
- Property data, sales analysis and reconciliation
- Tenure, title, property rights and encumbrances
- Lease structure, rent reviews, reversionary interests
- Value drivers in commercial property sectors
- Discounted cashflow analysis valuation methodology
- Hypothetical development valuation methodology
- Introduction to other investment valuation methods
Learning Approaches
In tutorials and lectures you will engage in collaborative activity with peers, tutors and lecturers. You will work with experts and peers to develop effective methods/approaches for communicating, retrieving, evaluating and presenting information. Your property economic-specific academic skills will be further developed in this unit.
Both content and organisation is designed for you to assess your progress in the unit and application for further units in the course and for you to gather evidence of meeting unit and course outcomes. The unit adopts a blended learning approach with lectures, tutorials and online activities throughout the semester where you will engage in built environment activities on an individual and group basis to relate the theory of built environment to real world practice.
Feedback on Learning and Assessment
Feedback in this unit is provided in the following ways:
- Marking rubrics will be provided to show the expectations for each assessment item.
- Marking rubrics with comments will be returned to you via the online submission portal.
- Lecture / tutorial sessions are available for group and individual feedback prior to the completion of assessments.
- Generic comments will be provided via QUT Canvas and in class.
This unit will engage practising professionals to provide professional written feedback throughout the whole unit.
Assessment
Overview
The assessment in this unit aims to support your achievement of the learning outcomes and has been designed to provide the opportunity for you to perform real world tasks and develop skills in working with professional teams. The assessment has been designed in order to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning in order to achieve a final grade (summative assessment).
Students may be required to attend campus or an assessment centre for the purposes of assessment, regardless of the attendance mode for the unit.
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Mid-semester exam
Problem based questions covering topics 1 to 7.
Assessment: Rental Analysis
Undertake a rent review on behalf of the tenants of a commercial premises.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Assessment: Valuation Report
An industry standard (API/RICS/IVSC) full valuation report for an income producing commercial property.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Requirements to Study
Costs
Additional Costs
Students are required to have a financial calculator for this unit. Recommended is the Sharp EL-735s or EL-738 financial calculator, which is available from the QUT Book Shop and other general retailers. Other financial calculators may also be suitable.
Resources
Useful sources include the newspaper, especially the property sections and the finance pages. The Australian Financial Review is always helpful but Thursday is especially good for property; The Australian has a commercial property section on a Friday; and The Sydney Morning Herald (Sydney), The Age (Melbourne) and The Courier Mail (Brisbane) provide local property information. On-line access to the newspapers is also a very good way of collecting and reviewing market data.
Other texts and references will be advised and recommended, where appropriate, during the lectures.
Resource Materials
Recommended text(s)
Australian Property Institute (2007), Valuation Principles and Practice - second edition, Australian Property Institute, Canberra.
Australian Property Institute (Current Edition). Introduction to Valuation and Property Standards (online version).
Blackledge, M. (2016). Introducing Property Valuation. (Second Edition). Milton: Taylor and Francis.
Hefferan, M. 2016. Real property in Australia: Foundations and Applications. second edition. Mackenzie Green Research and Publishing, Queensland.
Isaac, D. and O’Leary, J. (2013). Property Valuation Techniques (Third Edition), Palgrave Macmillan, Basingstoke, Hampshire.
REIA, API and PCA (Current Edition), Glossary of Property Terms.
RICS Valuation – Global Standards (2019) or the RICS 'Red Book Global'. Retrieved from https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/valuation/rics-valuation--global-standards-jan.pdf
Scarrett, D. (2014) 3rd edition, Property Valuation: The Five Methods, Florence: Taylor and Francis.
Whipple, R.T.M., (2006) Property Valuation and Analysis (Second Edition), Law Book Co., Sydney.
Other
Online Resources
You will be given password access for the current database systems employed by valuers and property professionals for residential property market information.
Daily newspapers: Refer to the Library Press Display database on the QUT Library website. http://library.pressdisplay.com.ezp01.library.qut.edu.au/pressdisplay/viewer.aspx
Risk Assessment Statement
There are no extraordinary risks associated with the classroom/lecture activities in this unit.
Prior to any off campus class activities that you are required to undertake in this unit, a risk assessment will be prepared and made available to you via the unit Canvas site. You will receive a briefing regarding any specific hazard and risk related instructions from your field leader before commencing the activity.
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.UD05 Bachelor of Property Economics
- Apply theoretical knowledge and technical skills, including fundamentals of building construction and knowledge of legal, social, cultural, and technological contexts, required to manage property assets and investment portfolios; analyse property markets, the drivers of property value and the feasibility of development; and identify future funding and transaction processes.
Relates to: ULO1, ULO2, Mid-semester exam, Rental Analysis, Valuation Report - Think critically and innovatively to solve problems by applying methodologies and calculations to identify innovative solutions and sustainability strategies and evaluate the feasibility of property development and investment opportunities.
Relates to: Mid-semester exam, Rental Analysis, Valuation Report - Analyse data using current proprietary software and strategies to evaluate financial and property market trends to inform current and future property decisions.
Relates to: ULO3, Mid-semester exam, Rental Analysis, Valuation Report - Communicate and collaborate strategically in professional contexts with diverse stakeholders
Relates to: ULO4, ULO5, Rental Analysis, Valuation Report - Display professional, ethical judgment and initiative, adapt to social, economic, technological and environmental challenges, and lead and manage people with consideration for different cultural perspectives and priorities.
Relates to: Rental Analysis, Valuation Report
Unit Outline: Semester 2 2025, Online
| Unit code: | USB144 |
|---|---|
| Credit points: | 12 |
| Pre-requisite: | USB140 or USB142 |
| Anti-requisite: | USB242 |
Overview
Investment Valuation is an intermediate unit in the Property Economics degree. The unit builds on the preliminary property fundamentals covered in USB142 Residential Valuation, expanding those key concepts to income producing and investment grade assets. This unit develops an understanding of the various commercial market sectors and how various features of these markets impact on the value of a property asset. The valuation methodologies used to value investment grade assets are also applied.The knowledge of this unit will be further developed in USB245 Property Investment Analysis, USB247 Money and Property and USB345 Specialised Valuation.
Learning Outcomes
On successful completion of this unit you will be able to:
- Analyse property markets and the drivers of commercial or industrial property value.
- Apply valuation methodologies to determine the value of investment property.
- Interpret, critically analyse and synthesise data relevant to property investment market.
- Prepare and present written and visual information for a range of stakeholder perspectives including clients, consultants, colleagues, regulators, investors and developers at an introductory professional standard.
- Collaborate to contribute to team work outcomes
Content
Learning outcomes will be achieved through coverage of the following topics:
- Time value of money
- Capitalisation valuation methodology
- Highest and best use/income earning potential
- Property data, sales analysis and reconciliation
- Tenure, title, property rights and encumbrances
- Lease structure, rent reviews, reversionary interests
- Value drivers in commercial property sectors
- Discounted cashflow analysis valuation methodology
- Hypothetical development valuation methodology
- Introduction to other investment valuation methods
Learning Approaches
In tutorials and lectures you will engage in collaborative activity with peers, tutors and lecturers. You will work with experts and peers to develop effective methods/approaches for communicating, retrieving, evaluating and presenting information. Your property economic-specific academic skills will be further developed in this unit.
Both content and organisation is designed for you to assess your progress in the unit and application for further units in the course and for you to gather evidence of meeting unit and course outcomes. The unit adopts a blended learning approach with lectures, tutorials and online activities throughout the semester where you will engage in built environment activities on an individual and group basis to relate the theory of built environment to real world practice.
Feedback on Learning and Assessment
Feedback in this unit is provided in the following ways:
- Marking rubrics will be provided to show the expectations for each assessment item.
- Marking rubrics with comments will be returned to you via the online submission portal.
- Lecture / tutorial sessions are available for group and individual feedback prior to the completion of assessments.
- Generic comments will be provided via QUT Canvas and in class.
This unit will engage practising professionals to provide professional written feedback throughout the whole unit.
Assessment
Overview
The assessment in this unit aims to support your achievement of the learning outcomes and has been designed to provide the opportunity for you to perform real world tasks and develop skills in working with professional teams. The assessment has been designed in order to allow you to:
- receive feedback on your learning as you progress toward the development of knowledge, understanding, skills and attitudes (formative assessment);
- demonstrate your learning in order to achieve a final grade (summative assessment).
Students may be required to attend campus or an assessment centre for the purposes of assessment, regardless of the attendance mode for the unit.
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Mid-semester exam
Problem based questions covering topics 1 to 7.
Assessment: Rental Analysis
Undertake a rent review on behalf of the tenants of a commercial premises.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Assessment: Valuation Report
An industry standard (API/RICS/IVSC) full valuation report for an income producing commercial property.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Requirements to Study
Costs
Additional Costs
Students are required to have a financial calculator for this unit. Recommended is the Sharp EL-735s or EL-738 financial calculator, which is available from the QUT Book Shop and other general retailers. Other financial calculators may also be suitable.
Resources
Useful sources include the newspaper, especially the property sections and the finance pages. The Australian Financial Review is always helpful but Thursday is especially good for property; The Australian has a commercial property section on a Friday; and The Sydney Morning Herald (Sydney), The Age (Melbourne) and The Courier Mail (Brisbane) provide local property information. On-line access to the newspapers is also a very good way of collecting and reviewing market data.
Other texts and references will be advised and recommended, where appropriate, during the lectures.
Resource Materials
Recommended text(s)
Australian Property Institute (2007), Valuation Principles and Practice - second edition, Australian Property Institute, Canberra.
Australian Property Institute (Current Edition). Introduction to Valuation and Property Standards (online version).
Blackledge, M. (2016). Introducing Property Valuation. (Second Edition). Milton: Taylor and Francis.
Hefferan, M. 2016. Real property in Australia: Foundations and Applications. second edition. Mackenzie Green Research and Publishing, Queensland.
Isaac, D. and O’Leary, J. (2013). Property Valuation Techniques (Third Edition), Palgrave Macmillan, Basingstoke, Hampshire.
REIA, API and PCA (Current Edition), Glossary of Property Terms.
RICS Valuation – Global Standards (2019) or the RICS 'Red Book Global'. Retrieved from https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/valuation/rics-valuation--global-standards-jan.pdf
Scarrett, D. (2014) 3rd edition, Property Valuation: The Five Methods, Florence: Taylor and Francis.
Whipple, R.T.M., (2006) Property Valuation and Analysis (Second Edition), Law Book Co., Sydney.
Other
Online Resources
You will be given password access for the current database systems employed by valuers and property professionals for residential property market information.
Daily newspapers: Refer to the Library Press Display database on the QUT Library website. http://library.pressdisplay.com.ezp01.library.qut.edu.au/pressdisplay/viewer.aspx
Risk Assessment Statement
There are no extraordinary risks associated with the classroom/lecture activities in this unit.
Prior to any off campus class activities that you are required to undertake in this unit, a risk assessment will be prepared and made available to you via the unit Canvas site. You will receive a briefing regarding any specific hazard and risk related instructions from your field leader before commencing the activity.
Course Learning Outcomes
This unit is designed to support your development of the following course/study area learning outcomes.UD05 Bachelor of Property Economics
- Apply theoretical knowledge and technical skills, including fundamentals of building construction and knowledge of legal, social, cultural, and technological contexts, required to manage property assets and investment portfolios; analyse property markets, the drivers of property value and the feasibility of development; and identify future funding and transaction processes.
Relates to: ULO1, ULO2, Mid-semester exam, Rental Analysis, Valuation Report - Think critically and innovatively to solve problems by applying methodologies and calculations to identify innovative solutions and sustainability strategies and evaluate the feasibility of property development and investment opportunities.
Relates to: Mid-semester exam, Rental Analysis, Valuation Report - Analyse data using current proprietary software and strategies to evaluate financial and property market trends to inform current and future property decisions.
Relates to: ULO3, Mid-semester exam, Rental Analysis, Valuation Report - Communicate and collaborate strategically in professional contexts with diverse stakeholders
Relates to: ULO4, ULO5, Rental Analysis, Valuation Report - Display professional, ethical judgment and initiative, adapt to social, economic, technological and environmental challenges, and lead and manage people with consideration for different cultural perspectives and priorities.
Relates to: Rental Analysis, Valuation Report