SUBJECT TITLE: REAL ESTATE ECONOMICS (PS 4002)

SUBJECT DESCRIPTION

This subject introduces the operation of the property market in Malaysia. The topics cover mainly the structure of property market, its cyclical pattern and also the variables such as town planning and development and the manner in which it affects the property market structure.

SYLLABUS CONTENT

1. Introduction
   • The Malaysian real estate market within the general economic structure of the country.
   • The real estate market sectors in Malaysia.
   • Contribution of the real estate industry towards the national economy.
   • Understanding the nature of real estate market operation in Malaysia, problems and issues.
2. The Operation of Real Estate Market: The Use and Investment Sector
   • Nature of user rights.
   • Types of user demand.
   • Demand and supply influence of use market.
   • Determinant of rent in the use market.
   • Nature of investment interest in real estate.
   • Demand and supply influence of investment market.
   • Rental yield as indicator for investment.
   • Determinant of yield.
   • Investors in real estate.
   • Relationship of use and investment market.
3. The Operation of Real Estate Market: The Development and Land Market
   • Demand and supply influence for real estate development.
   • Actors in the real estate development sector.
   • Demand and supply of land for real estate development.
   • Land supply constraint.
   • Development finance.
4. Real Estate Cycle
   • Understanding the real estate cycle
   • Types of real estate cycle.
   • Factors contributing to cyclical pattern of real estate market.
   • Correlation between property cycle and business cycle.
   • Real estate indices.
5. Real Estate and Urban Planning
   • Economics of planning control.
   • The effects of planning control towards property market.
   • Land use planning and the land values.
   • Economics consideration in planning control.
6. Environmental Economics
   • Environment issues, sustainability, conservation, green technology.
   • Social cost and benefits, market and non-market benefits, measurements.
   • Environment valuation methods: contingent valuation method, hedonic pricing method, travel cost method.
   • Regulatory instruments, liability laws, establishing property rights.