Underwriting of Municipal Debt and Placement Risk Premiums in Broker-Dealer Market Transaction Prices

Development land valuation accuracy in China – a case study of Beijing

Journal of Property Investment and Finance ◽

10.1108/jpif-06-2020-0072 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mengmeng Dou ◽

Lesley Anne Hemphill ◽

Lay Cheng Lim

Keyword(s):

Market Price ◽

Market Dynamics ◽

Industrial Land ◽

Content Type ◽

Industrial Market ◽

Transaction Prices ◽

Land Valuation ◽

Market Transaction ◽

The Government ◽

Practical Implications

PurposeThe paper aims to quantitatively investigate vacant industrial land valuation accuracy in China, given the importance of the industrial market as an underlying pillar to promote urban growth especially in emerging economies.Design/methodology/approachIn China, the government formulates a Land Benchmark Price (LBP) to serve as a price reference point to sell land rights. To gain an in-depth understanding of the valuation practice by LBP, this paper uses correlation analysis to investigate the varying dynamics between the transaction-based prices and LBP appraisal-based estimates. Furthermore, a margin of error examination investigates the distortion in LBP land appraisals, with an amended LBP presented to improve the accuracy of the current LBP method.FindingsDifferent influencing factors are identified to impact the actual market transaction prices and the LBP construction, leading to a large discrepancy in industrial land appraisals. A systematic problem is recognised that the construction of the LBP follows urban bid curve theory, whereas the land transaction prices do not, demonstrating that an urgent LBP update is needed to capture the market dynamics for industrial market.Practical implicationsThe paper sets out discrepancies in valuation accuracy surrounding the application of the LBP valuation approach in China. This has practical implications for valuers in terms of raising their awareness of the deficiencies in the approach and the pitfalls they need to guard against in their appraisals. It also has implications for developers and investors who rely on valuer appraisals to assess the viability of land purchases; hence, they need to express caution in the appraisal advice sought. Finally, the results demonstrate to the standard setters how they need to modify the LBP equations to better capture market dynamics.Originality/valueThe paper examines valuation accuracy in transitional economies, through valuation differentials between appraised price and the transacted price. The value of the work lies in the analysis of the fundamental differentials between market price and appraised value, which is of importance to investors/developers, practicing valuers, as well as government officials responsible for setting the valuation standards.

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The Effect of Expected Losses on the Hong Kong Property Market

The Journal of Real Estate Finance and Economics ◽

10.1007/s11146-021-09851-3 ◽

2021 ◽

Author(s):

Ling Li ◽

Wayne Xinwei Wan

Keyword(s):

Hong Kong ◽

Residential Property ◽

Property Market ◽

Commercial Property ◽

Transaction Prices ◽

Commercial Markets ◽

Commercial Market ◽

Market Transaction ◽

Market Factors ◽

Loss Effect

AbstractExpected losses anchored to purchase prices can affect actual transactions in different property sectors. Utilizing the data of over a million commercial and residential property transactions in Hong Kong from 1991 to 2015, we find that sellers facing nominal losses relative to their prior purchase prices attained higher selling prices than their counterparts. We suggest two market factors to account for the extent of the loss effect on the market transaction prices. First, the loss effect is only prominent when comparable transaction information is not readily accessible, such as in the less-transacted commercial property market. Second, our results suggest the relevance of the loss effect to the boom-bust property cycle in both the residential and commercial markets. The effect of expected losses on transaction prices is relatively weak in the bust period between 1998 and 2003 when the Hong Kong property market lost almost two-thirds of its value, and it enlarges with the market recovering. The loss effect is not attenuated at the aggregate market level but is associated with strong reductions in price declines in the bust period and in the commercial market. These results have implications for understanding the market adjustment of the loss effect in the property market and its association with the aggregate market dynamics in a boom-bust property cycle.

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The Use of the Geographically Weighted Regression for the Real Estate Market Analysis

Folia Oeconomica Stetinensia ◽

10.2478/v10031-012-0009-6 ◽

2012 ◽

Vol 11 (1) ◽

pp. 19-32 ◽

Cited By ~ 5

Author(s):

Radosław Cellmer

Keyword(s):

Real Estate ◽

Geographically Weighted Regression ◽

Real Estate Market ◽

Weighted Regression ◽

The Real ◽

The Real Estate ◽

Transaction Prices ◽

The Real Estate Market ◽

Market Transaction ◽

Grading Scale

Abstract The article presents a method for developing geographically weighted regression models for analyzing real estate market transaction prices and evaluating the effect of selected property attributes on the prices and value of real estate. The property attributes were evaluated on a grading scale to determine the relative (percentage) indicators characterizing the relationships on the real estate market. The market data were analyzed to evaluate the influence of infrastructure availability on the prices of land in Olsztyn. The results were used to assess the effect of every utility service on the property transaction prices.

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Primary and Secondary Residential Real Estate Markets in Poland – Analogies in Offer and Transaction Price Development

Real Estate Management and Valuation ◽

10.2478/remav-2013-0006 ◽

2013 ◽

Vol 21 (1) ◽

pp. 39-48 ◽

Cited By ~ 5

Author(s):

Iwona Dittmann

Keyword(s):

Real Estate ◽

Real Estate Market ◽

Secondary Market ◽

Residential Real Estate ◽

Capital Cities ◽

Real Estate Markets ◽

Transaction Prices ◽

National Bank ◽

Market Transaction ◽

The Individual

Abstract The paper presents the results of a comparison of the development of mean offer and transaction prices per 1m2 in primary and secondary residential real estate markets in 16 provincial capital cities in Poland, during the time period from the 3rd quarter of 2006 to the 3rd quarter of 2012. The quarterly data came from the residential real estate price database of the National Bank of Poland (NBP). The research concerns the dependencies in the residential real estate market between the following four price categories: offer prices in the primary market, transaction prices in the primary market, offer prices in the secondary market and transaction prices in the secondary market. For each city, the dynamics of each price category per 1m2, the existence of a linear correlation between the individual mean price categories in chosen subintervals and their convergence and variability in time were studied and compared.

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Debt Strategies of Russian Regions

Voprosy Ekonomiki ◽

10.32609/0042-8736-2015-10-78-93 ◽

2015 ◽

pp. 78-93 ◽

Cited By ~ 4

Author(s):

A. Tabakh ◽

D. Andreeva

Keyword(s):

Management Practices ◽

Debt Management ◽

Russian Regions ◽

Key Drivers ◽

Municipal Debt ◽

Debt Policy

The article considers debt management practices by Russian regions and municipalities, within a framework set by federal budgetary legislation and practices of state-controlled banks. Key drivers of regional and municipal debt policy are analyzed, and Russian regions are stratified by their debt policy. Current recession is likely to produce higher level of regional debt and changes in its structure, lowering reliance on market funding and decreasing variations in pursued debt policy.

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