PRINCIPLES OF REAL ESTATE VALUATION
2013/2014, Semester 2
School of Design and Environment (Real Estate)
Modular Credits: 4
This module Principles of Real Estate Valuation aims to introduce students to one of the key professional disciplines in real estate. Given that real estate is both a space that serves the needs of different uses as well as an asset for investment, it has unique characteristics which have impact on their pricing and valuation. This modules starts with the concepts and definitions of value and expects students to understand the principles and practice of valuation. They will also be expected to know and apply the different methods of valuation and have an appreciation of the professional practice in valuation.
The key learning outcomes of the module include: deeper appreciation and understanding of the real estate market in Singapore; knowledgeable about valuation theory and practice; have a good grasp of current property rents and prices and property market developments; develop an interest and passion for valuation; and, last but not least, serves to underpin higher level modules in real estate, especially valuation.
There are no pre-requisites for this module.
While this module will be taught through the usual mode of lectures and tutorials, the practical and professional character of the subject will require students to keep abreast of all developments in the real estate market in Singapore and possibly beyond. Students will be required to know current issues, rents and prices of at least the real estate market in Singapore. They will demonstrate this through a group project which will be an actual development site for them to apply their valuation knowledge. Assessment will also emphasize understanding and application. Practising valuers will also be invited to address the students as and when appropriate.
Weekly lectures and tutorials. Time will be allocated for project.
The module introduces students to the theories that underpin real property valuation with the aim of providing students with an appreciation of the fundamental principles of valuation. The module therefore provides a critical review of the value theory, appraisal theory and valuation theory. Topics to be dealt with include: nature and scope of valuation; concpets of value, particularly open market value and fair market value; foundations of appraisal; role and functions of the valuer; characteristics of property and the property market; market study and valuation; the valuation process; professional standards and valuation report; and an introduction to all the methods of valuation - comparison, cost, income, profits and residual.
The continuous assessment will comprise a group project (30%), individual quiz (10%), tutorial participation (10%) and final exam (50%).
Workload Components : A-B-C-D-E
A: no. of lecture hours per week
B: no. of tutorial hours per week
C: no. of lab hours per week
D: no. of hours for projects, assignments, fieldwork etc per week
E: no. of hours for preparatory work by a student per week