SUBJECT TITLE: INTERNATIONAL REAL ESTATE MARKETS (PS 4006)

SUBJECT DESCRIPTION

This subject introduces the application of economic theories and principles to the international real estate market. The topics include aspects on globalization, international property investments and property markets.

SYLLABUS CONTENT

1. Globalization and Global Property Market Players
   • Globalization and international property market development.
   • Institutional investors.
   • Fund managers.
   • Funds and investment vehicles.
2. Parity Relationships of Currency and Foreign Exchange
   • Purchasing power parity.
   • Interest rate parity.
3. The Case for International Diversification
   • Risk diversification.
   • Lack of local product.
   • Investment fashion/trend.
4. Risks of International Property Market
   • Problems and issues associated with international property investments.
   • Country risk: political, social economic and financial risk factors.
   • Currency and exchange rate risks.
   • Transaction costs and fees.
   • Global economic and property cycles.
   • Taxation and remittance restrictions.
   • Regulations and planning factors.
   • Risk reduction measures.
5. Investment Vehicles
   • Property Vehicles
     • Listed property companies.
     • REITS
   • Unlisted Property Vehicles
     • Unlisted property funds.
     • Joint venture companies.
6. International Real Estate Market Activities
   • International occupational real estate market (CRE).
   • International real estate investment markets.
   • International real estate development markets.
   • International professional real estate services.
7. Types of International Property Markets
   • Characteristics of established real estate markets, e.g. USA, UK.
   • Characteristics of emerging property markets, e.g. Thailand, Indonesia.
   • Characteristics of transitional property markets, e.g. Kenya, Myanmar.
8. Investment Incentives and Policies for FDI and Foreign Real Estate Direct Investment in Malaysia
   • The role of local and regional development agencies, e.g. MIDA, FIC, MPI.
   • International factor mobility:
     • Theory of capital movements.
     • MNC and factor mobility.
   • Innovation and the knowledge economy:
     • Multimedia Super Corridor (MSC).
     • MSC Malaysia Cybercity and Cybercentre.