Real estate represents an important sector in Hong Kong. It involves many interesting and complex economic and policy issues, for example, introduction of a variety of mortgage-backed securities and the land auction system. A proper understanding of the real estate market is important for individuals to make sound savings and investment decisions, for businesses to make the right decision on whether to buy or lease a property, and for banks to evaluate the asset risks underlying their mortgage loan portfolios and to innovate real estate related financial products. The objective of this course is to develop an analytical framework by which students can make sound real estate investment decisions. The main emphasis of the course is on concept building, financial modelling, and practical application.