International Real Estate Review

2004 ◽  
Vol 7 (1) ◽  
pp. 1-30
Author(s):  
Richard J. Jr. Buttimer ◽  
◽  
Anthony Gu ◽  
Tyler T. Yang ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Chinese Government ◽  
Price Discounts ◽  
Significant Challenge ◽  
Mortgage Rates ◽  
Publicly Owned ◽  
Provident Fund ◽  
Housing Units ◽  
Housing Provident Fund

The Chinese government has embarked upon an effort to reduce the number of tenants living in publicly owned housing. This is a significant challenge for any government, but may be especially so for a country where private homeownership is a new option. Out of concern that many of its citizens could not afford to purchase their housing units, the Chinese government created the Housing Provident Fund. This program, which is similar to housing fund programs in other countries such as Thailand and Singapore, combines a 401(k)-like savings and retirement account with subsidized mortgage rates and price discounts to provide a mechanism through which an employee could save for, and eventually complete, a housing purchase.

scholarly journals The Effect of Covid-19 on the Real Estate Industry in India

2021 ◽  
Vol 9 (1) ◽  
pp. 122-129
Author(s):  
Rashmi Jaymin Sanchaniya
Keyword(s):  
Real Estate ◽  
World Economy ◽  
Detrimental Effect ◽  
Secondary Data ◽  
Real Estate Market ◽  
Fiscal Year ◽  
Real Estate Industry ◽  
The Real Estate ◽  
Significant Challenge ◽  
The International Monetary Fund

Abstract The world economy seems to be experiencing one of the most severe downturns in recent memory. The latest pandemic has had a detrimental effect on the economies of several nations, including India. The International Monetary Fund forecast India’s growth rate at 1.9 % for fiscal year 2021, down from 5.8 % previously. This poses a significant challenge to the Indian economy. The resumption of work was complicated by the workers’ surprising return to the employers from underground. Developers struggled to locate enough job-creating jobs due to the labour market severe constraints. The populace is burdened by the great pestilence that threatens the nation. Indian real estate, which was still emerging from the implications of demonetization (November 2016) and other changes, was jolted by this pandemic, with building development halted and real estate transactions paused. Indian real estate should plan itself for a post-COVID-19 environment and be prepared to take several new and technology-driven moves to get back on track. The secondary data research methodology is used in this paper and the aim of the research is to discuss the pre-pandemic real estate market and the effect of COVID-19 on the Indian real estate market. Additionally, it discusses the risks and prospects confronting various real estate industry participants.

scholarly journals International Real Estate Review

2014 ◽  
Vol 17 (3) ◽  
pp. 415-444
Author(s):  
Kazuya Tani ◽  
◽  
Yoshiyuki Kikuchi ◽  
Hideo Takaoka ◽  
Shubin Lin ◽  
...  
Keyword(s):  
Real Estate ◽  
Public Housing ◽  
Household Income ◽  
Annual Household Income ◽  
Acquisition Process ◽  
Commercial Housing ◽  
Household Incomes ◽  
The Relationship ◽  
Housing Units

The purpose of this paper is to clarify the housing acquisition process by providing profiles of residents in Shanghai. A questionnaire was prepared for residents in both public housing and commodity housing to analyze the relationship between the purchase prices of housing units and the annual household incomes of the buyers. The ability to purchase private condominium units depends on whether the purchasers already possess any real properties. In Shanghai, the number of condominiums supplied by private developers has been rapidly increasing in recent years and represented about 40% of the number of households in 2009. However, as these prices are about 9 to 14 times the average annual household income, we believe that a path from renting public housing to owning commercial housing, which was a relocation process commonly witnessed in the 1980s in Japan, is considerably difficult to be followed by regular residents in Shanghai.

Underpricing and market timing in SEOs of European REITs and REOCs

2019 ◽  
Vol 38 (3) ◽  
pp. 163-180
Author(s):  
Felix Lorenz
Keyword(s):  
Real Estate ◽  
Lower Cost ◽  
Market Timing ◽  
Seasoned Equity Offerings ◽  
Equity Offerings ◽  
Real Estate Investment ◽  
Content Type ◽  
Price Discounts ◽  
Property Companies ◽  
Practical Implications

Purpose The purpose of this paper is to contribute to the literature on seasoned equity offerings (SEOs) by examining the underpricing of European real estate corporations and identifying determinants explaining the phenomenon of setting the offer price at a discount at SEOs. Design/methodology/approach With a sample of 470 SEOs of European real estate investment trusts (REITs) and real estate operating companies (REOCs) from 2004 to 2018, multivariate regression models are applied to test for theories on the pricing of SEOs. This paper furthermore tests for differences in underpricing for REITs and REOCs as well as specialized and diversified property companies. Findings Significant underpricing of 3.06 percent is found, with REITs (1.90 percent) being statistically less underpriced than REOCs (5.08 percent). The findings support the market timing theory by showing that managers trying to time the equity market gain from lower underpricing. Furthermore, underwritten offerings are more underpriced to reduce the risk of the arranging bank, but top-tier underwriters are able to reduce offer price discounts by being more successful in attracting investors. The results cannot support the value uncertainty hypothesis, but they are in line with placement cost stories. In addition, specialized property companies are subject to lower underpricing. Practical implications An optimal issuance strategy taking into account timing, relative offer size and the choice of the underwriter can minimize the amount of “money left on the table” and therefore contribute to the lower cost of raising capital. Originality/value This is the first study to investigate SEO underpricing for European real estate corporations, pricing differences of REITs and REOCs in seasoned offerings and the effect of market timing on the pricing of SEOs.

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