Real Estat Economics : Group Project- Guidelines

Your team is required to conduct the real estate market analysis to one of clients of the company you are currently working at, which is a renowned real estate consultancy firm in Hong Kong. Your client “Quantum Corporation”, an American investment company, plans to invest in Hong Kong real estate market. It has limited knowledge of this market. It thus needs your team’s professional advice on the real estate sector that Quantum plans to invest in.

Your team may assume that Quantum is interested in a specific site or building to invest in. You are free to choose any site or building in Hong Kong to carry out the analysis. You can choose an undeveloped site that has been sold or to be tendered by the government. You can also choose a developed building (i.e. Cheung Kong Centre) and assume that the owner plans to sell it to Quantum. If you choose a stratified building, you have to assume that the current owner has collected all the stratified ownerships of the building before selling it to Quantum. Otherwise, Quantum will not be interested in collecting the stratified ownership by its own.

Your team is free to choose ONE of the real estate sectors (i.e. retail, hotel, office, industrial, etc.) in Hong Kong as a case. Your team can also decide to choose sub-sectors (i.e. shopping mall, high-street shops, Grade A office, Grade B office, Grade C office, 5-star hotel, 4-star hotel- 3-star hotel, flatted factories, industrial/office, specialized factories, etc.) or sub-markets (i.e. Hong Kong Island, Kowloon, New Territories). However, your team has to ensure that the real estate data of the sub-sector or sub-market is available for your analysis. As the data is of importance, you are advised to choose the sector/sub-sector which the data is available.

Presentation

(My part is Marcro-economic analysis，it will take five minutes and about 550 words)

Your team will present to CEO of “Quantum” regarding the sector/sub-sector you selected. You will present: Our group have chosen the site NKIL 6546

· Introduction of your project

· Macro-economic analysis (Economic performance, infrastructure, policies/regulations)

· Property sector analysis (Demand drivers for your property, current supply, current rents and vacancy rate)

· Site analysis (Neighbourhood characteristics, infrastructure, accessibility, etc.)

· Competition analysis (direct and indirect competition)

· Future outlook

Your analysis of future supply, demand, vacancy and rents. Future competition.

· Strategic advice & recommendation

Your suggestion on whether to go ahead with the investment, as well as the proposed rents and prospective tenants for your property. When you are proposing the rents, please benchmark the rents in general, as well as your competitors.

Note: The assessment of the oral presentation will adhere to the “Grade Descriptions for Oral Presentation”. You are thus advised to follow these grade descriptors when you prepare your presentation.

Written report

In the written report, the content of your presentation is transformed into words. Make sure that the written report should follow formal report format, which include:

– Introduction

– Macro-economic analysis(500-600 words)

– Property sector analysis

– Site analysis

– Competition analysis

– Future outlook

– Strategic advice & recommendation

– Conclusion

You will conclude your report.

General information for Write-Up

· The content is limited to 2,800–3,200 words (excluding reference lists, graphs and tables). Remember to write down the word count at the last page of your assignment. The content (including data and graphs) should be in English.

· As it is an essay type, DO NOT just provide bullet points. Please also provide a title for your essay.

· As your essay must be uploaded to VeriGuide, DO NOT COPY from each other or from textbook/PPT/the questions of this assignment. Your grade will be deducted if the similarity rate is more than 20%. For every 10% increment of similarity rate, 0.5-point (out of 20- point) will be deducted. For example, if your similarly is within the range of 21% – 30%, your point will be deducted by 0.5-point (out of 20-point); if within the range of 31% – 40%, your point will be deducted by 1-point (out of 20-point); and so on. If your essay is found to have the direct copy from any sources, you will be accused of plagiarism. Thus, you are advised to use your own word while writing this essay. Please upload your essay ONCE only to VeriGuide. The VeriGuide receipt should be attached to the first page of the assignment. Remember to sign the receipt.

· The citation and reference list should follow the APA system (6^th edition).