Alternative Investment

Alternative Assets - Part 11 (2023)


This eCourse consists of two modules on real estate. Real estate is generally considered to be an “alternative asset," complementary in a portfolio context given its low correlation with stock, bond, and money markets. Fund managers need to determine how much real estate to add to a portfolio and at what price. Module 1 describes the different means by which investors can obtain exposure to real estate as an asset class. Two key investment methods are examined: direct investment in physical property and indirect investment through instruments such as real estate stocks and bonds, derivatives, real estate investment trusts (REITs), real estate operating companies (REOCs), and real estate limited partnerships (RELPs).

Module 2 covers how investors can value real estate.


On completion of this course, you will be able to:
- Distinguish between direct and indirect investment in real estate, and recognise the key dynamics of the residential and commercial sectors
- Identify the main considerations for investors looking to invest directly in physical properties as well as the impact of leverage on investment returns
- Recognise the various methods of indirect investment in real estate and the differences between these methods
- Identify the main factors that determine real estate prices
- Recall how individual properties can be valued
- List the methods used to value real estate, namely the replacement cost approach, direct sales comparison approach, and income approach
- Recognise how property values can be compared using measures such as the house price to net rental ratio, yield, and house price to income ratio


Module 1 - Real Estate - Investing
Topic 1: Overview of Real Estate Investment
Topic 2: Direct Investment
Topic 3 Indirect Investment

Module 2 - Real Estate - Valuation
Topic 1: Basics of Real Estate Valuation
Topic 2: Valuation of Individual Properties
Topic 3: Valuation Methods
Topic 4: Relative Valuation Measures


Relevant Subject
Type 9 - Asset management
SFC:1.00, PWMA:1.00
Non-Member: HK$450
Staff of Corporate Member: HK$300
All Member: HK$300