International Real Estate Review

2008 ◽  
Vol 11 (1) ◽  
pp. 65-82
Author(s):  
Kuan Min Wang ◽  
◽  
Yuan-Ming Lee ◽  
Nguyen T.T.Binh ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Great Influence ◽  
Threshold Value ◽  
Real Estate Investment ◽  
Correction Model ◽  
Inflation Rates ◽  
Housing Returns ◽  
Nonlinear Vector ◽  
Inflation Hedging ◽  
Robust Evidence

Conclusions of past works on the inflation hedging ability of real estate investment are not consistent. The reason for this perplexity might be the neglect of separation between high and low state of inflation, which has a great influence on empirical results. In order to examine the inflation hedging effectiveness of real estate with Taiwanese monthly housing returns and inflation, this paper uses the inflation as the threshold variable to create the nonlinear vector correction model that divides the inflation rates into high and low regime. We find robust evidence that when inflation rates are higher than 0.83% threshold value, housing returns are able to hedge against inflation, and, otherwise, they are unable. Using new methodology to discover new implications is main contribution of this study.

scholarly journals International Real Estate Review

2019 ◽  
Vol 22 (1) ◽  
pp. 1-26
Author(s):  
Benedikt Fleischmann ◽  
◽  
Carsten Fritz ◽  
Steffen Sebastian ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Arima Model ◽  
Negative Relationship ◽  
Developed Economies ◽  
Consumer Prices ◽  
Inflation Rates ◽  
Asset Value ◽  
Real Estate Prices ◽  
The Relationship ◽  
Inflation Hedging

With inflation rates remaining close to zero in all major developed economies for long periods of time, especially from 1998 - 2015, investors have become increasingly concerned about the potential effects of deflation on asset value. Negative inflation rates were observed between 1998 and 2009 in Hong Kong and Japan, and those economies faced several years of deflation. There is a rich body of literature on the effects of inflation hedging on the returns of stocks, bonds, and real estate. We examine asset returns for these products between 1986 and 2009, and use an ARIMA model to explore whether they offer a deflation hedge. We show that rents and real estate prices are closely linked to consumer prices, which confirms previous findings on inflation hedging. Since the relationship is generally positive and over proportional, we find that real estate is not an effective hedge against deflation. In contrast, we find no relationships between stocks or bonds and inflation. Only for Japanese bonds are we able to find a significantly negative relationship with unexpected deflation.

scholarly journals SELECTION OF THE OPTIMAL REAL ESTATE INVESTMENT PROJECT BASING ON MULTIPLE CRITERIA EVALUATION USING STOCHASTIC DIMENSIONS

2009 ◽  
Vol 10 (3) ◽  
pp. 261-270 ◽  
Author(s):  
Romualdas Ginevičius ◽  
Viktoras Zubrecovas
Keyword(s):  
Real Estate ◽  
Regional Economics ◽  
Great Influence ◽  
Investment Project ◽  
Multiple Criteria ◽  
Efficiency Evaluation ◽  
Mathematical Methods ◽  
Real Estate Investment ◽  
Multiple Criteria Evaluation ◽  
Real Estate Projects

As investment in real estate has great influence on regional economics development it is important to evaluate real estate investment processes as a whole. For this purpose the model of real estate projects’ efficiency evaluation was developed and presented in this article. The proposed model is designed for alternative projects, variants selection, investment resources allocation as well as real estate value maintenance and enhancement problems solution. The model of real estate projects’ efficiency evaluation covers all the investment decision‐making cycle, the hierarchically‐structured projects’ evaluation criteria system, risk evaluation basing on stochastic dimensions as well as the mathematical methods adaptation for multiple criteria evaluation problems solution, risk assessment and adjusted mathematical methods is presented in this issue.

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