The quality of the analysis and the logical reasoning in developing the analysis are the

key factors for the assessment.

$1.$ Describe the fundamental local economic and property market conditions; provide

a brief introduction of the selected property $(15\%).$

$2.$ Perform detailed analysis of the local economic indicators $($i$.$e$.$ population growth

rate, personal income, inflation rate, unemployment rate and so on$),$ and examine

how these economic indicators are linked to the selected property $($i$.$e$.$ rent,

vacancy rate, operating expense and resale price$)(25\%).$

$3.$ Based on your assumptions $($please state clearly what are your assumptions$)$ and

the analysis in step $2,$ you need to estimate the future $10$ years of cash flows

generated from the selected property. $(20\%).$

$4.$ Collect the information from the capital market and the property market $($i$.$e$.$ stock

market return, REITs index return, property market return, and so on$),$ and use the

appropriate approach to estimate the discount rate for the selected

property. $(20\%).$

$5.$ Use the discount cash flow approach to estimate the present value of the selected

property, perform some sensitivity analysis and provide a conclusion

remark $(20\%).$