scholarly journals International Real Estate Review

2017 ◽  
Vol 20 (4) ◽  
pp. 417-450
Author(s):  
Kim Hin Ho ◽  
◽  
Satyanarain Rengarajan ◽  
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Future Expectations ◽  
Public And Private ◽  
Vector Autoregressive ◽  
Macroeconomic Conditions ◽  
Knowledge Based ◽  
Knowledge Intensive ◽  
Using Data ◽  
Industrial Real Estate

he behavioural structure of large and strategic industrial real estate accommodation does not exist in a vacuum. Instead, its fundamental investment values and yields are uniquely affected through the dynamic interaction among exogenous and endogenous forces related to the industrial real estate demand-supply conditions, macroeconomic and institutional polices as well as urban industrial plans. This study aims to understand the dynamic behaviour of the industrial real estate market in Singapore that is slowly transitioning from a capital intensive to knowledge intensive economy. Using data obtained from various sources between 2001Q4-2010Q2 which essentially capture three property cycles, we incorporate a vector autoregressive (VAR) approach to holistically model the industrial real estate market in Singapore with respect to its demand-supply conditions, market capitalization rates which encompass information about rental yields, capital values along with future expectations. This study will help policy makers and developers to understand the structure of the industrial real estate market in Singapore along with respect to its macroeconomic conditions. The results are insightful as the data capture both the public and private markets along with a new hi-tech industrial accommodation (science parks), which is slowly gaining prominence as of the turn at the 21st century as Singapore strives to steer towards a knowledge based industrial economy.

What drives housing prices, rent and new construction in China

2017 ◽  
Vol 10 (5) ◽  
pp. 662-686
Author(s):  
Dimitrios Staikos ◽  
Wenjun Xue
Keyword(s):  
Real Estate ◽  
Empirical Test ◽  
Housing Prices ◽  
Panel Cointegration ◽  
Real Estate Market ◽  
Estimation Methods ◽  
Content Type ◽  
New Construction ◽  
Using Data ◽  
First Time

Purpose With this paper, the authors aim to investigate the drivers behind three of the most important aspects of the Chinese real estate market, housing prices, housing rent and new construction. At the same time, the authors perform a comprehensive empirical test of the popular 4-quadrant model by Wheaton and DiPasquale. Design/methodology/approach In this paper, the authors utilize panel cointegration estimation methods and data from 35 Chinese metropolitan areas. Findings The results indicate that the 4-quadrant model is well suited to explain the determinants of housing prices. However, the same is not true regarding housing rent and new construction suggesting a more complex theoretical framework may be required for a well-rounded explanation of real estate markets. Originality/value It is the first time that panel data are used to estimate rent and new construction for China. Also, it is the first time a comprehensive test of the Wheaton and DiPasquale 4-quadrant model is performed using data from China.

scholarly journals International Real Estate Review

2016 ◽  
Vol 19 (1) ◽  
pp. 27-49
Author(s):  
William Mingyan Cheung ◽  
◽  
James Chicheong Lei ◽  
Desmond Tsang ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Price Discovery ◽  
Common Factor ◽  
Significant Proportion ◽  
Real Estate Market ◽  
Reverse Causality ◽  
Public And Private ◽  
Real Estate Markets ◽  
The Public ◽  
Private Real Estate

This study examines whether property transaction affects the price discovery process in real estate markets. Prior literature shows that price discovery generally first takes place in the securitized public real estate investment trust (REIT) market. We conjecture that property transaction provides novel information to the direct real estate market and can change the dynamics between public and private real estate returns. We employ a unique dataset of property transactions to construct "transaction windows¨ and specifically examine the causality between public and private real estate markets around these periods. We form firm-level pairs of public and private price series, and estimate the normalized common factor loadings per Gonzalo and Granger (1995) by using a vector error-correction model. Our findings show that a significant proportion of price discovery happens in the private market instead of the public REIT market. Our results are robust to investments of different property types and different lengths of transaction windows. Overall, the findings in this study imply that property acquisition and disposition provide crucial information to the private real estate market and induce a reverse causality between the public and private markets.

Real estate media sentiment through textual analysis

2018 ◽  
Vol 36 (5) ◽  
pp. 410-428 ◽  
Author(s):  
Jessica Roxanne Ruscheinsky ◽  
Marcel Lang ◽  
Wolfgang Schäfers
Keyword(s):  
Real Estate ◽  
New Media ◽  
News Media ◽  
Textual Analysis ◽  
Real Estate Market ◽  
Wall Street ◽  
Content Type ◽  
Vector Autoregressive ◽  
The Wall Street Journal ◽  
Media Sentiment

Purpose The purpose of this paper is to determine systematically the broader relationship between news media sentiment, extracted through textual analysis of articles published by leading US newspapers, and the securitized real estate market. Design/methodology/approach The methodology is divided into two stages. First, roughly 125,000 US newspaper article headlines from Bloomberg, The Financial Times, Forbes and The Wall Street Journal are investigated with a dictionary-based approach, and different measures of sentiment are created. Second, a vector autoregressive framework is used to analyse the relationship between media-expressed sentiment and REIT market movements over the period 2005–2015. Findings The empirical results provide significant evidence for a leading relationship between media sentiment and future REIT market movements. Furthermore, applying the dictionary-based approach for textual analysis, the results exhibit that a domain-specific dictionary is superior to a general dictionary. In addition, better results are achieved by a sentiment measure incorporating both positive and negative sentiment, rather than just one polarity. Practical implications In connection with fundamentals of the REIT market, these findings can be utilised to further improve the understanding of securitized real estate market movements and investment decisions. Furthermore, this paper highlights the importance of paying attention to new media and digitalization. The results are robust for different REIT sectors and when conventional control variables are considered. Originality/value This paper demonstrates for the first time, that textual analysis is able to capture media sentiment from news relevant to the US securitized real estate market. Furthermore, the broad collection of newspaper articles from four different sources is unique.

scholarly journals Governing urban development in the Low Countries: From managerialism to entrepreneurialism and financialization

2018 ◽  
Vol 26 (4) ◽  
pp. 400-418 ◽  
Author(s):  
Jannes Van Loon ◽  
Stijn Oosterlynck ◽  
Manuel B Aalbers
Keyword(s):  
Real Estate ◽  
Urban Development ◽  
Urban Governance ◽  
Real Estate Market ◽  
Municipal Finance ◽  
Low Countries ◽  
Public And Private ◽  
The Real Estate ◽  
Post War ◽  
Private Actors

Has the post-war managerial approach to urban governance in the Netherlands and Flanders been replaced by more entrepreneurial and financialized forms? In this paper, we study the transformation of urban governance in the Low Countries through city case studies of Apeldoorn (Netherlands) and Antwerp (Belgium). We show how Dutch urban governance is financialized by connecting local public finance with financialized real estate markets through municipal land banks. However, inter-municipal financial solidarity and ring-fencing municipalities from financial markets create specific continental European processes of financialization. Flemish municipalities, in contrast, have shifted from a model of laissez-faire urban development (embedded in a system of large municipal autonomy) towards entrepreneurial urban growth regimes, in which technocratic public and private actors have increased access to public financial resources, which are used to create large urban renewal projects. In Belgium, autonomous municipal real estate corporations are a crucial instrument for connecting municipal finance to the real estate market.

scholarly journals Private-equity commercial real estate, timberland, and farmland: market integration and information transition dynamics

2020 ◽  
Vol 50 (11) ◽  
pp. 1101-1112
Author(s):  
Bin Mei ◽  
Wenbo Wu ◽  
Wenjing Yao
Keyword(s):  
Real Estate ◽  
Market Integration ◽  
Private Equity ◽  
Real Estate Market ◽  
Commercial Real Estate ◽  
National Council ◽  
Transition Dynamics ◽  
Vector Error Correction ◽  
Market Fundamentals ◽  
Using Data

Using data from the National Council of Real Estate Investment Fiduciaries (NCREIF), we examine market integration of commercial real estate and timberland–farmland assets via the Fama–MacBeth two-step approach under the intertemporal capital asset pricing framework. In addition, we study the information transition dynamics between those markets via the vector error correction model (VECM). We find evidence of market segregation and one-way information flow from the timberland–farmland market to the commercial real estate market. We conclude that commercial real estate and timberland–farmland assets are driven by different market fundamentals and that lagged timberland–farmland returns can help predict current commercial real estate returns. The only exception is during market downturns when commercial real estate and timberland–farmland markets are somewhat integrated and driven by some factors that are not specified in this study.

scholarly journals International Real Estate Review

2009 ◽  
Vol 12 (3) ◽  
pp. 221-251
Author(s):  
Wei-han Liu ◽  
◽  
Zhefang Zhou ◽  
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Inflation Rate ◽  
Forecast Error ◽  
Real Estate Market ◽  
Short Term ◽  
Forecast Horizon ◽  
Vector Autoregressive ◽  
Long Run ◽  
Inflation Hedging

This paper examines the inflation-hedging behavior of the Hong Kong securitized real estate market between April 1986 and April 2007. The monthly series of the Hang Seng Property Index (HSPI) is selected as the proxy of the Hong Kong securitized real estate market due to its comprehensive coverage and availability of rich data. We find that the vector autoregressive forecast error method, which is introduced by Den Haan (2000), outperforms the traditional linear vector autoregressive model and vector error correction model techniques in depicting the comovement between the HSPI and inflation rate. The comovement estimates show a positive correlation between the HSPI and inflation rate in the short-term and a negative correlation in the long term which indicates that the Hong Kong securitized real estate market can serve as an inflation hedge in the short term, but becomes a perverse inflation hedge in the long run. This inflation-hedging pattern differs from those of its neighboring major East Asian markets. This study demonstrates that the inflation-hedging capability of securitized real estate is not a static issue, but rather, depends on the length of the forecast horizon.

scholarly journals Da periferia distante à periferia próxima: notas sobre a construção de um bairro popular na Região Metropolitana de Salvador

GeoTextos ◽  
2008 ◽  
Vol 2 (2) ◽  
Author(s):  
Patrícia Chame Dias
Keyword(s):  
Real Estate ◽  
Spatial Structure ◽  
Real Estate Market ◽  
Public And Private ◽  
The Real Estate ◽  
Life Conditions ◽  
The Social ◽  
The Real Estate Market ◽  
Interesting Object ◽  
The 1960S

Em meados dos anos 1960, Itinga - em Lauro de Freitas, município da Região Metropolitana de Salvador - era considerada uma área distante, caracterizada pela presença de grandes fazendas abandonadas, sendo, portanto, uma terra que não despertava interesse comercial. Nesta mesma década, dentre as conseqüências da inserção da Bahia no projeto de industrialização nacional, ocorreram alterações na estrutura sócio-espacial de Salvador que expandia sua ocupação e lógica para municípios contíguos, como Lauro de Freitas. Itinga, então, na condição de periferia de Salvador, passou a ser objeto interessante ao mercado imobiliário: no seu território foram implantados, rapidamente, inúmeros loteamentos populares, sem qualquer infra-estrutura, apresentando precárias condições de vida. Em 2005, Itinga, consolidada como bairro popular, contava com inúmeros loteamentos populares, estabelecimentos comerciais e de serviços públicos e privados. As condições de vida mudaram e, como dizem seus moradores, o “progresso” do bairro é visível. Porém, Itinga ainda é periferia, tanto de Salvador, como de Lauro de Freitas. Nesse sentido, este artigo pretende discutir algumas das implicações de morar na periferia, para tanto se analisam as condições de moradia em Itinga, no início de sua “urbanização” e atualmente, comparando-as com as existentes em outros bairros de Lauro de Freitas. Abstract In the middle of the 1960s, Itinga — located in Lauro of Freitas, municipality of the Metropolitan Area of Salvador — was considered a distant area and characterized by the presence of great abandoned farms, therefore, being a land that attract no commercial interests. On that same decade, among the consequences of the insertion of Bahia State in the national project of industrialization, it happened some alterations in the social-spatial structure of Salvador that expanded its kind of logic and spatial occupation to contiguous municipalities, like Lauro de Freitas. So, Itinga, under the condition of peripheral district of Salvador, started to be an interesting object to the real estate market: in its territory it was quickly established countless popular divisions into lots, without any infrastructure and presenting precarious life conditions. In 2005, Itinga, consolidated as popular neighborhood, counted with countless popular divisions into lots, commercial establishments and public and private services. The life conditions changed and, as their residents use to say, the “progress” of the neighborhood is visible. However, Itinga is still periphery of Salvador and, at the same time, periphery of Lauro de Freitas. In that sense, this article intends to discuss some of the consequences of living in the periphery, for so much, it analyzes the living conditions of Itinga at the beginning of its “urbanization” and nowadays, and it compares such conditions with the existent ones, in other neighborhoods of Lauro de Freitas.

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