Proceedings from the PRRES Conference - 2005
SEVENTH ANNUAL CONFERENCE
21st –24th January 2001

Adelaide, Australia


Delegate Papers  - Including Keywords and Abstract

Papers shown as |Refereed| have been refereed through a peer review process involving an expert international board of referees appointed by the PRRES Board.  Full papers were refereed with authors being required to make any changes prior to presentation at the conference and final publication as a refereed paper in these proceedings.



AUTHOR: Bryan Baker
TITLE: Residential Rental Real Estate Orioerty Values : Developing An Explanatory Model
KEYWORDS:
ABSTRACT: "Until the mid-1980's, many financial theorists considered the Capm (capital asset pricing model) capable of providing a reliable explanation of why 'riskier' shares earned higher returns. Nowadays, we recognise that the returns of many investments cannot be adequately explained by the Capm alone. Subsequent research has demonstrated the need to expand on the capital asset pricing model - with it's single explanatory variable (risk) - to encompass 'multifactor' causal variables. Real estate is fundamentally no different from other mainstream investments. The analysis of property investments can be easily integrated into the capital market framework. The study which is the subject of this paper regressed the causal and dependent variables of the Capm - risk and return - using residential properties' standard deviation in price (risk) and price gains and rentals (returns). For it's data base, it used two-bedroom flat and three-bedroom house sales for the, then, fifty nine local government areas in the Melbourne statistical division. To cover a time span sufficient to incorporate multiple property cycles, the analysis used the Victorian Valuer General's sales statistics plus rental advertisements from 'The Age' newspaper for the twenty seven years from 1967 to 1994. The findings of this study are that the Capm alone does not adequately explain real estate returns. More explanatory variables are required. The broader perspective is needed, as, unlike other major areas of investment - notably shares and bonds - each realty investment is unique, if only because of it's location. Accordingly, over and above the basic risk-return approach of the Capm, further measures are needed, to cope with this uniqueness. The paper hypothesises that these explanatory variables are likely to be found in hedonic analysis. What hedonic analysis does is value each property according to it's individual attributes: primarily it's physical size and quality of construction, and its location relative to the CBD, schools, public transport and other infrastructures which have either a positive or negative impact on it's value. Having established the Capm to be an inadequate predictor of residential rental real estate returns, this study modifies the Capm to a multifactor model which incorporates appropriate hedonic measures."
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AUTHOR: Dr. Henning Bjornlund
TITLE: Water Policies And Rural Land Values |Refereed|
KEYWORDS: "Water Markets, Land Values, Water Value, Victoria, New South Wales And South Australia"
ABSTRACT: "Within most semi-arid regions of Australia, irrigation water is essential for farm production and thereby farm values. Traditionally water has been appurtenant to land, and could not be traded separately, from the land to which it originally was attached. With increasing salinisation and water logging problems, within many irrigated regions, as well as the exhaustion of available water resources, community pressure was placed to bear on policy makers, to change these policies. This community pressure came from two directions. Proponents of new higher value producing enterprises, such as viticulture and horticulture, needed access to water, and environmental organisations wanted irrigation removed from unsuitable soils, to reduce the negative environmental impact of irrigation. The policy answer, to this challenge, was the removal of the nexus between the land and water components of an irrigated property, and the introduction of a separate market for the water component. Such policies were first introduced in South Australia in 1983, New South Wales in 1989 and Victoria in 1991. Both New South Wales and Victoria had the ability to trade water for a single season prior to these years, but not an ability to do so permanently. With the introduction of the National Competition Policy (NCP) and associated agreements, market based instruments were prescribed within a number of traditionally public areas, among them the water industry. The other states, are therefore presently struggling, to introduce new legislation, to provide for water markets in fulfillment of the NCP, and to avoid significant financial penalties associated with non-fulfillment. A central expectation of policy makers, from the introduction of water market polices, was the ability to facilitate a transfer of water away from low value producing, inefficient irrigators, on unsuitable soils, to high value producing, efficient irrigators, on more suitable soils. The expectation of policy makers was that the buyers, under this scenario, would be willing and able to financially fully compensate the sellers for their losses. Permanent trade has now been possible for a number of years and we should be able to establish whether this expectation has been fulfilled. This paper will investigate this issue based on transactions of irrigated farmland as well as permanent water rights within the three states. Hedonic functions have been applied to transactions of irrigated farmland, to determine the value of the water components when transacted together with the land, on which it traditionally has been applied. During the same time periods, within all three states, buyers and sellers of permanent water have been interviewed to establish the value of permanent water when sold separately from land. Comparing the two values should answer the question."
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AUTHOR: Sandy Bond
TITLE: Conjoint Analysis: Assessing Buyer Preferences For Property Attributes To Assist With The Estimation Of Land Contamination Stigma |Refereed|
KEYWORDS: Conjoint Analysis – Buyer Preferences – Utility - Property Attributes - Contaminated Land
ABSTRACT: "The traditional approach to property valuation that dominates valuation theory and practice in Australasia is the Sales Comparison Approach. However, the approach relies heavily on the availability of comparable sales price data and the ability of the valuer to adjust these for differences in property attributes between the comparable and subject properties. With reference to contaminated property, comparable sales price information is often scarce and this makes it difficult to determine how each property attribute contributes to price. In these instances the usefulness of the Sales Comparison Approach for valuing property affected by land contamination is limited. In the absence of comparable sales data other information sources are required to help valuers determine how each property attribute contributes to price. One option is to find out directly from the buyers what their preferences are for particular property variables. Knowing how important each property attribute is to buyers enables the attribute to be correctly weighted in the valuation process. This paper summarizes the results of a study that uses conjoint analysis, a survey-based technique, to determine the importance of land contamination and other relevant property attributes in purchasers' buying behaviour of vacant remediated residential land. From the results, the extent that ""stigma"" 1 should be taken into account in valuations of post-remediated residential property was ascertained. Footnote “Stigma” is the blighting effect on property value caused by perceived risk and uncertainty. Uncertainties relate to negative intangible factors such as: the inability to effect a total ""cure""; risk of failure of the remediation method; risk of changes in legislation or remediation standards; difficulty in obtaining finance, or simply, a fear of the unknown. Post-remediation “stigma” is the residual loss in value after all costs of remediation, including insurance and monitoring have been allowed for. It equates to the difference in value between a remediated contaminated site and a comparable “clean” site with no history of contamination."
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AUTHOR: Terry Boyd
TITLE: Valuation Uncertainty V Negligence: What Is Reasonable Care? Is It Being Achieved?
KEYWORDS:
ABSTRACT: "Value ranges and value variations have been used to infer negligence. This paper clarifies the difference between value ranges (used to specify uncertainty) and inaccuracies. It suggests that there is a clear distinction between valuation uncertainty and negligence. The paper briefly reviews the central works found in the substantial body of literature, predominantly emanating from the United Kingdom, addressing value accuracy, variation, and related matters. Thereafter it examines the findings of recent Australian Supreme Court judgements on valuer negligence. The paper concludes that the current research preoccupation with the valuation end product, the value figure, is of limited practical relevance to the valuation profession and that energy may more constructively be directed at identifying and addressing the underlying cause(s) of valuation negligence. To this end further avenues of inquiry are identified, the authors' future intent being to conduct research capable of practical translation and application aimed at enhancing the overall quality of the valuation product. "
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AUTHOR: Spike Boydell
TITLE: Philosophical Perceptions Of Pacific Property - Land As A Communal Asset In Fiji
KEYWORDS: "Communalism, Feudalism, Capitalism, Conflict, Tradition, Land Tenure, Fiji."
ABSTRACT: "Fiji was supposed to be hosting the PRRES 2001 Conference. The events surrounding the putsch of May 19th, 2000 and the subsequent military coup have precluded Fiji as a venue for this year’s conference. This paper explores the philosophy of land as an asset within the conflicting paradigms of communalism and capitalism that affect many developing nations in the Pacific region. Using Fiji as a case study, the nature of land ownership is investigated within a framework of influence from the traditional chiefly systems, religions, individual aspirations and external capitalist development impacts. The concept of communalism involves 83% of the land area of Fiji. Within a static non-evolving framework there are indications that hypothetically it could remain operational. However, reality brings different pressures and motivations to bear. Education and evolving individual aspirations can overtake tradition in this regard. Entwined with this evolution is a reaction to a supplanted western land tenure structure that adds to the conflict. Through an investigation of contrasting philosophies and contemporary conflicts between duty, obligation, tradition and capitalism this paper attempts to unravel the confusion, suggesting directions for development in this critical issue."
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AUTHOR: Ann Brownell
TITLE: Negligence And The Valuation Industry
KEYWORDS:
ABSTRACT: This paper examines critical legal cases dealing with negligence and decisions handed down in the past 3 - 4 years.The focus of the paper was on the current situation and how it affects the valuation industry in Australia. Many of the recent decisions may be applied to Valuers they also apply to all professionals including property professionls. Legislation and recent court decisions were also discussed with a brief overview of the position in the United Kingdom. Legislation will be introduced into the English parliament to endeavor to place some restrictions upon the huge payouts now being awarded against professionals. Australia will be looking with interest towards the English legislation as it has been said by several 'learned persons' in Australia that legislation will the only avenue avaliable to curb the awards for damages and prolification of litigation with regard to negligence. Some of the cases discussed are to be appealed in higher courts in the year 2001 and their outcome will have a significant impact for Australian Professionals.
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AUTHOR: Michael Burns, Valerie Kupke, Wayne Marano And Peter Rossini
TITLE: Measuring The Changing Effects Of Airport Noise A Case Study Of Adelaide Airport
KEYWORDS: "Airport Noise, Hedonic Pricing, Environmental Impact"
ABSTRACT: "In 1999 a proposed expansion of the international terminal at Adelaide Airport in South Australia (SA) resulted in the commissioning of a socioeconomic study of adjacent local council areas (Kupke & Rossini 1999) as part of a larger planning report (Burns 1999). This study included a consideration of demographic and employment patterns, volumes of commercial and industrial land sales as well as a review of local house price levels with respect to the Adelaide Statistical Division (ASD). While the impact of airport noise on residential values was not explicit within the review process it appeared at the time that price levels implicated by airport noise were more buoyant than those for the wider ASD. Curiosity about the issue in light of previous research conducted by Burns (1990) prompted this paper which attempts to consider the impacts of airport noise over time via hedonic pricing and the application of GIS methodologies."
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AUTHOR: Nelson Chan
TITLE: Stigma And Its Assessment Methods |Refereed|
KEYWORDS: "Stigma, Evaluation Criteria, Quantifying Stigma, Australian And Overseas Methods"
ABSTRACT: "This paper discusses the nature of stigma and its assessment methods. Stigma is a value loss to property value due to the presence of a risk perception-driven market resistance. Apart from affecting a contaminated or potentially contaminated property, stigma also affects the value of properties that are not contaminated but are in close proximity to a source of contamination. Although Australia is generally regarded as a clean country, however, there is also contaminated land in this beautiful country. This paper finds that stigma also exists in Australia. Since stigma is caused by risk perception, its impact on property value is difficult to quantify and market evidence cannot be used as a reliable means to assess value loss due to stigma. Regarding stigma assessment methods, this paper looks at the methods suggested by property researchers as well as those used by practising valuers. It also provides a comparison of methods used by Australian valuers and valuers in the US, UK and New Zealand. The paper finds that the methods suggested by property researchers and the methods used by Australian valuers are not satisfactory. There is a need to research for a better method to assess stigma."
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AUTHOR: Teck Chai Chin
TITLE: An Optimal Control Approach To Market Timing In The Singapore Property Market
KEYWORDS:
ABSTRACT: "This paper presents an optimal control approach to market timing strategy for the property investor in allocating investment funds between the risk-free savings deposit and the comparatively risky property investment. Investment recommendation is generated in terms of the four possible investment actions in a typical property investment scenario, namely: buy, hold, sell and wait. The investment performance of the proposed market timing strategy is compared with that of the buy-and-hold strategy. Results from the simulation study for the 20-year period from 1977/Q1 to 1996/Q4 indicates that the proposed market timing strategy is capable of achieving superior investment returns in the Singapore property market."
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AUTHOR: Philip Clatworthy And Rob Kooymans
TITLE: Academics’ And Students’ Perceptions Of The Effect Of The Physical Environment On Learning
KEYWORDS: "Learning Environment, Lecture Theatres, Tutorial Rooms, Student Learning, Academic Staff"
ABSTRACT: "Do school and classroom spaces enhance or detract from the learning process? Are lecturers and students as much concerned about their learning environment as is sometimes assumed? Drawing on the work of Fleming and Storr (1999), as well as the theoretical work of, inter alia, Lang (1996) and Bligh (1972), the researchers sought the perceptions of academic staff and students on all six campuses of the University of South Australia. The following four questions were addressed: 1. What components of lecture theatres do lecturers perceive as being important in terms of their affect on students’ learning experience? 2. What components of lecture theatres do students perceive as being important in terms of their effect on their own learning experience? 3. Do the responses to a general question on the perceived importance of lecture theatre design components differ significantly from responses to the question that considers the learning experience of the student? Are any differences able to be explained? 4. Do the responses of the lecturers and the students differ significantly? Are these differences able to be explained? The methodology adopted was a combination of focus groups and questionnaire surveys administered to randomly selected groups of students in tutorials and to all academic staff by e-mail. Responses were such that some significant and interesting conclusions were able to be drawn."
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AUTHOR: Gregory J Costello
TITLE: Further Evidence Of Seasonal Influences In Australian Housing Markets - A Case Study Of Perth
KEYWORDS:
ABSTRACT: This paper examines the impact of seasonal influences on housing market activity in Perth Western Australia. Empirical tests are used to examine the influence of a quarterly season on the demand for housing and the observed real house price changes during that season. The empirical tests use a large set of housing transactions for the period 1988 - 1995. Data is examined for the aggregate Perth housing market and 13 distinct spatial regions. Variations in the volume of transactions are examined by constructing ratios from four period moving averages. Variations in real house price changes are examined through construction of constant quality (hedonic) house price indexes for the aggregate market and all spatial regions. The explanatory power of the statistical tests is improved by 'stacking' the regional data to provide more observations for use with standard parametric tests for seasonality. The results of these tests confirm some significant seasonal influences. The volume of transactions and hence demand is greatest during the first quarter of a year and lowest during the last quarter. The observed real house price changes are highest in the first quarter of a year and lowest during the third quarter. The paper concludes with some commentary on the likely causes of these seasonal influences and some suggestions for future research.
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AUTHOR: Neil Crosby, Diana Kincaid, John Murdoch And Anthony Lavers
TITLE: Expert Valuation Witnesses In Australia And The Uk
KEYWORDS:
ABSTRACT: "At PRRES 1998, Crosby, Murdoch and Lavers (1998) reported on research into the use of the margin of error concept in professional negligence actions brought against valuers in the UK and Australia. Part of this research involved a comprehensive review of cases in the UK, and this indicated that the role and performance of expert valuation witnesses warranted investigation. Such an investigation, sponsored by the RICS and the Company of Chartered Surveyors, was undertaken in 1998 and 1999 and resulted in findings on the organisation, training and performance of expert valuation witnesses (Crosby, Murdoch and Lavers, 1999). The work involved the analysis of valuation evidence in reported and unreported cases before the UK courts and a survey of expert valuation witnesses via a questionnaire to all valuers identified as undertaking this kind of work by the professional institutions of the RICS and the ISVA. During the earlier research, a preliminary examination of cases in Australia revealed some differences in the organisation of expert witnesses which, it was suggested, might help to explain why the valuations put forward by Australian expert witnesses appeared to be less variable than those of their UK counterparts. This paper aims to extend the analysis of the expert valuation witness in the UK by carrying out comparative work in Australia. This research adopts the same methodology and analyses the transcripts of cases in the Australian courts where valuation disputes are fully reported. In addition, using data provided by the API in a number of states in Australia, a survey of Australian expert valuation witnesses will be undertaken in October 2000, based on the UK survey but suitably amended for the Australian context. The data will then be compared to identify similarities and differences in organisation and performance between Australia and the UK, and to identify any advantages and disadvantages which could inform the debate on expert witnesses in general and valuation expert witnesses in particular."
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AUTHOR: Sevanaia Dakaica
TITLE: Rent Control In The Commercial Sector - A Case Study Of Suva Cbd
KEYWORDS: "Rent Control, Cbd, Pib, Suva, Housing Sector, And Commercial Sector"
ABSTRACT: "Rent Control in the Central Business District (CBD) of major cites in developed countries is probably unheard of. This is because in most of these cities if not all there is no form of rent control being practiced. Competition is encouraged in all sectors and as result properties are considered a good investment medium enjoying both rental growth and capital appreciation. Most rent control regimes apply only to the housing sector. The commercial sector is allowed to operate under some perfect market conditions where price mechanism interacts with demand and supply. However, in Fiji under the Counter Inflation Act (1973) any rent increases in the CBD are subject to the approval of the Prices Incomes Board (PIB). In 1989 the Government removed rent control on commercial rent from the PIB. At that time, the Government expected the lifting of the control would stimulate investment and boost the building industry. Subsequent competition in the market was to have acted as the most effective control on rental. However, this has not materialized for one reason or another because, as shown by rental increases, owners of property were charging exorbitant increases to their tenants. Since the uplifting of the control in 1989, the tenants have made several representations to Governments that landlords are increasing the rental unreasonably. The P.I.B. had carried out a survey that indicated an unrealistic hiking of rental particularly in the main centers where there have been drastic increases in rental without leasing agreements. This control is only applicable to increases in rent and does not include new letting. Hence in 1996 Government put back rent control. The problem lies in the increase in rent by landlords, which is viewed by both the tenants and Government as unjustified hence the need to put in place control measures. This move is perceived as benefiting the tenants who obviously are a very strong lobby group. The implications of rent control are that it ensures that space in the CBD is not expensive. The landlord’s reaction is to withhold potential developments and refurbishment. Overall the supply of space has not kept pace with demand. The paper will discuss the impacts of rent control on property markets especially the commercial sector. In particular it will look at three different time period when rent control was and was not imposed: 1973-1988 when Government decided that rent control was appropriate 1989-1996 when Government decided that there was no need for rent control 1996-uptodate when Government decided to bring back rent control Government decisions whether to impose or not to impose rent control is seen as somewhat arbitrary. This time period will be used as a basis to investigate the impact of rent control on developments and supply of spaces in Suva CBD."
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AUTHOR: Maurizio D'Amato
TITLE: Appraising Properties With Rough Set Theory |Refereed|
KEYWORDS:
ABSTRACT: "It is well known that the main approaches to property appraisal are income, market and cost. The work is focused on a procedure useful to analyze unprecise and multiattribute informations called rough set theory (Pawlak,1982). This particular methodology will be introduced as a further method of market approach. The theory will be analysed showing a pratical application on a group of real property transactions obtained from local real estate brokers. The application will show interesting results. Comparing this method with more widespread statistical tools some advantages will be highlighted."
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AUTHOR: Peng Du And Sun Sheng Han
TITLE: "The Impact Of Housing Reform On Consumption, Investment, And Industrial Growth: A Tale Of Five Chinese Cities" |Refereed|
KEYWORDS: "Housing Reform, Economic Growth, Cities, China"
ABSTRACT: "Housing reform has been a key component in China's economic revitalization program initiated by the late paramount leader Deng Xiaoping since 1978. By reforming the welfare housing system, the Chinese government aims at the removal of a burden (i.e., welfare housing) from state finance. At the same time, housing reform will stimulate changes in consumption, investment, and related industrial sectors, and thus facilitate economic growth. This paper examines the impact of housing reform on consumption, investment, and industrial growth in five Chinese cities. Data are collected from field reconnaissance, government policy documents and census materials, covering the period 1985-1998. Descriptive statistics and correlation analysis are used for analyzing the data. Research findings revealed that housing reform resulted in drastic changes in housing investment and growth of related industries. Self-raised capital became the main source of housing investment, while state investment declined considerably. Significant correlations were clearly discernible between housing investment and related industries. Nevertheless, the power of resident's consumption, as measured by the percentage expenditure on real property, household articles and services, was a constraint against housing commercialization. Further reforms to raise the level of effective demand for housing, and to introduce various schemes in housing finance are critical for developing the housing industry into an engine of economic growth."
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AUTHOR: Chris Eves
TITLE: Total Farm Performance In A Free Trade Economy
KEYWORDS:
ABSTRACT: "The importance of agriculture in many countries has tended to reduce as their economies move from a resource base to a manufacturing industry base. Although the level of agricultural production in first world countries has increased over the past two decades, this increase has generally been at a less significant rate compared to other sectors of the economies. Despite this increase in secondary and high technology industries, developed countries have continued to encourage and support their agricultural industries. This support has been through both tariffs and price support. Following pressure from developing economies, particularly through the World Trade Organisation (WTO), GATT Uruguay round and the Cairns Group Developed countries are now in various stages of winding back or de-coupling agricultural support within their economies. A major concern of farmers in protected agricultural markets is the impact of a free market trade in agricultural commodities on farm incomes and land values. This paper will analyse the capital and income performance of the NSW rural land market over the period 1990-1999. This analysis will be based on land use and will compare the total return from rural properties based on world agricultural commodity prices."
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AUTHOR: Dr Mervyn Fiedler
TITLE: Some Impacts Of The Gst System On Property Sales
KEYWORDS: "Australia, Gst, Property, Property Sales, Property Taxation, Taxation "
ABSTRACT: "This paper briefly canvasses the key elements of the Federal Government's New Tax System, with emphasis on the Goods and Services Tax (GST).It identifies and assesses a range of impacts upon property sale transactions in Australia. The several impacts of the GST on sales of land, residential property,commercial property and commercial residential property, auctions, off-the-plan sales, sales of farmland, options, staged settlement and sales as a going concern are considered. The applications of the GST to selling commission, repairs and renovations, utility services and insurance are treated. The liability of the respective parties to a property transaction to the GST is examined and the methods of calculation of the GST outlined. The paper concludes by canvassing the impacts of The New Tax System on negative gearing and upon property markets generally"
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AUTHOR: John Flaherty And Ric Lombardo
TITLE: The Median Price As An Index Of Property Price Changes
KEYWORDS:
ABSTRACT: "The most widely used measure of property price change in the residential market is the median. Increasingly the popular media are using this measure to communicate information about residential markets in the major capital cities. The median property price has almost been elevated to the the status of a ‘Residential Property index’ comparable to the ‘All Ordinaries Index’. The median is a valuable guide and has the attraction of being a simple measure to calculate, even if it is not always understood by readers of the financial press. When the median is examined for information content as a location in a distribution, it can be better understood and used more objectively. An alternative measure will be used to make a comparison."
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AUTHOR: Helen Gilbert
TITLE: A Case Study In Contemporary Development: How Does It Measure Up To The Principles Of Classic Urban Design Theorists? |Refereed|
KEYWORDS: "Urban Design, Large Scale Development"
ABSTRACT: "This paper examines the proposal to redevelop an area in South Sydney against some general principles extracted from a selection of classic urban design theorists. The ACI site development is part of the largest redevelopment project in Australia at present, that is, the Green Square/South Sydney Growth Centre. The overall project aims to revitalise 275 hectares of largely redundant industrial area spanning four South Sydney suburbs. This paper investigates the claim that the overall project will set new benchmarks in urban design and planning. Specifically it analyses the urban design principles underpinning the master plans for both the ACI site and the overall Green Square Draft Structural Master Plan against principles derived from some well known urban design theories. Initially a set of principles for quality design is extracted from a review of the work of a range of urban design and planning theorists including Camillo Sitte, Christopher Alexander, Jane Jacobs, William Whyte, Alan Jacobs and Donald Appleyard. The second part of the paper examines the urban design aspects of the two selected master plans in the light of this set of principles. The paper concludes that there are encouraging aspects of the master plans that appear to be consistent with classic urban design theory. However, there remain some overriding concerns that could well undermine such positive elements. In particular there are some ingrained issues that appear to characterise much of contemporary development for various reasons. The paper isolates these issues in an effort to determine what is achievable in terms of urban design given the realities of the current operation of the development industry."
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AUTHOR: Professor Bob Hargreaves
TITLE: Government Policy And The Residential Rental Market |Refereed|
KEYWORDS:
ABSTRACT: This paper examines the impact of government housing policy on the movement in residential rents during the period 1993-1998. During this time state house rents were moved from being income related to being set at market levels. At the same time a government funded accommodation supplement was introduced for low income renters in both the private and state sectors. The present government has decided to go back to income related rents for state houses but to maintain the accommodation supplement policy. Private sector property investors are concerned that the new policy setting will cause rents to fall in the private sector thereby discouraging investment in rental housing. Analysis of the data confirms that rents did rise during the period 1993-1998 and lower quartile rents in cities with a high percentage of state house rose at a faster rate than upper quartile rents in the same cities. Moving state rents away from market levels is likely to cause private sector rents to drop.Thus the concerns expressed by the private sector appear to be valid.
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AUTHOR: Abdul Hassan
TITLE: Review Of Local Government Rating System In Fiji.
KEYWORDS: Local Government Rating System In Fiji
ABSTRACT: "Approximately35, 000 properties fall within city and town boundaries on which property rates are levied by two cities and nine town councils. One of the complexities of the present system is that majority of the land in urban areas is leasehold, yet the rating value is fixed on fee simple (freehold). Unlike the other countries, the Local Government Act of Fiji does not allow for a multiple rating system. For example in Australia legislation and enactment permits each State and Territory to adopt any system which suits their needs. In the absence of such a proviso in the Local Government Act of Fiji, local councils face difficulty in assessing land values. Also the general sentiment amongst the ratepayers, Local Government Association and Local Councils is that the present system is not equitable to the ratepayers and other users of the municipal services. This paper examines the disadvantages of the present system and recommends changes to meet the present day demand created by the substantial development of the towns and cities over the last fifty years."
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AUTHOR: James Juniper
TITLE: Extending Real Options Theory To Account For Property Investment Under Conditions Of Uncertainty And Incomplete Markets |Refereed|
KEYWORDS:
ABSTRACT: "The literature on real options theory is both diverse and rapidly expanding. Now standard techniques for the pricing of derivatives given a stochastic process for the price of underlying assets, are increasingly applied to the case of real investment in productive assets, including property development (Trigeorgis, 1996). Typically, this latter class of investments is represented as a set of options over deferment of a project, termination and salvage, switching of inputs and/or outputs, spawning of related projects, and the expansion, contraction, and temporary shut-down of projects. Concurrently, finance theorists have drawn on the mathematical literature on risk-sensitive and robust control theory under norm bounds as one vehicle for accommodating uncertainty and market incompleteness (Andersen, Hansen, and Sargent 1999; McEneaney, W.M., 1997; Tornell, A., 2000). This paper provides a heuristic understanding of the relationship between these two bodies of research by examining recent work that establishes range bounds over option prices in incomplete markets (eg, that arising due to the stochastic volatility of stock prices or the existence of a stochastic interest rate) through the application of ""good-deal"" bounds over the Sharpe ratios, maximum entropy constraints, and gain-loss ratios of basis assets (Bernardo and Ledoit, 2000; Stutzer, 1995; Cochrane and Saa-Requejo, 2000). By varying the stipulated bound, the valuer can move along a spectrum ranging from the set of non-arbitrage bounds through to the uniquely defined option price that is associated with the pricing kernel of a chosen asset pricing model. The ""good-deal"" bound can thus be interpreted as a measure of investor uncertainty relative to a reference probability distribution for the equilibrium asset-pricing model. The paper identifies the precise relationship holding between the sup-norm bound on the pricing kernel, maximum entropy and the stochastic uncertainty constraint and robustness parameter appearing in robust control problems. As such, it sets out an agenda for future research into real options-based valuation of investment under uncertainty."
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AUTHOR: Dr John Keogh
TITLE: Contaminated Land And Risk Management Issues - How Foreseeable Is Corporate Liability? |Refereed|
KEYWORDS: "Corporate Liability, Environmental Negligence, Due Diligence, Contamination , Environmental Degradation, Stigma Property Damages , Risk Management Strategies , Recognition Avoidance And Reduction Of Risk , Environmental Audits"
ABSTRACT: Land contamination is more often that not the result of an 'unforeseeable' corporate accident which could have been avoided through the application of due care and operational resources. Expecting the unexpected is a precautionary strategy within a wider approach to corporate environmental management but a necessary factor to be considered in the overall risk management plan. This paper examines the incidence of corporate environmental negligence and highlights the advantages of establishing an effective environmental due diligence programme in the early stages of corporate operations. In the process the paper examines five case studies where corporations have been exposed to environmental liability through their failure to fully appreciated the future environmental consequences of their activities. Risk management strategies are identified within the context of an environmental management system and the importance of the environmental audit is recognised as an instrument which can effectively reduce a corporation's exposure to liability.
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AUTHOR: Dr John Keogh
TITLE: Everything`S Rosy Isn`T It - A Commentary On Legal Tensions Below The Surface In Retirement Village Living
KEYWORDS: "Code Of Practice, Retirement Villages Act 1999, Disputes Between Residents And Operators, Contractual Rights Of Management, Unconscionable Conduct, Trade Practices And Consumer Protection Legislation"
ABSTRACT: The popular picture of retirement living in retirement villages sometimes masks the turbulent discord below the surface between management and resident groups and also between factional groups of residents. This paper examines the generators of such disputes by highlighting the issues raised in prominent retirement village cases and by examining the consultation process between management and residents. Critical issues are seen through legislative innovations in the Retirement Villages Act 1999 and are discussed against a background of Trade Practices and consumer protection legislation.
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AUTHOR: Dr John Keogh
TITLE: The Special Value Of Land In Compulsory Acquisition Cases - A Summary Of The Legal Approaches To A Contentious Issue In Valuation Practice.
KEYWORDS: Value To Dispossessed Owner - Measurement By Economic Standard Essential - Special Purpose In Immediate Contemplation - Allowance For 'Special Adaptability' - Future Or Contingent Value Considered - Summary Of Case Law And Principles Since 1867
ABSTRACT: "Recent valuations cases have only served to broaden the argument over the limits of the 'special value' element in compulsory acquisition cases. From Eagle v Charing Cross Railway (1867) to Pastoral Finance Association Ltd v The Minister (1914), the underlying principle has remained focused on the owner's entitlement to receive as compensation 'the value of the land to them whatever that might be.' That is, if the dispossessed owner is to receive compensation, the measure of compensation must take account of the peculiar value to the owner of the property compulsorily acquired. In recent times the discussion of 'special value' has embraced the concept of 'special adaptability' under certain circumstances. This paper is a fundamental analysis from first principles supported by case law references and presents the benchmarks to be considered in any exercise involving questions of 'special value'."
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AUTHOR: Rohit Kishore
TITLE: Pricing Of The Listed Property Trust Shares: An Analysis Of Size And Value Related Anomalies.
KEYWORDS: "Market Risk, Pricing Anomalies, Size Effect, Book-To-Market Value, And Risk Premium"
ABSTRACT: "According to the CAPM expected returns on individual assets are positively and linearly correlated with the assets market beta coefficients (the slope in the regression of an asset’s return on the market’s returns). An asset’s market beta relates the asset’s systematic risk with that of the market portfolio’s, and measures the co variation of the asset’s returns with returns on the market portfolio. The assertion is that assets with high expected beta risk ought to be associated with high expected return, and visa versa, and in this sense betas are sufficient to describing the expected returns on individual assets. Roll and Ross (1976,80), Basu (1977), Banz (1981), Bhandari (1988), Fama and French (1991, 92, 93, 96 and 97), Chan and Chen (1998. 91), and others have shown empirical evidence that single variable beta is insufficient in explaining the cross-section of asset returns, and that firm specific factors particularly firm size and book-to-market ratios have additional explanatory power over asset market betas. Colwell and Park (1990), McIntosh, Liang and Tompkins (1991), and Pertson and Hsieh (1997) find similar evidence in the pricing of REIT shares. These factors are often referred to as pricing anomalies due to not having a sound theoretical base as the CAPM. The objective of this paper is to extend the literature by studying the pricing of the Listed Property Trust (LPT) shares. It attempts to isolate the effects of beta risk on unit prices from that of firm size, book-to-market and seasonality factors. The study utilizes monthly returns on all the trusts that make up the LPT valued-weighted index between July 1992-June 2000. The data will be sorted into 10 portfolios (3*beta, 3*BE/ME and 1 by combining all the January and July returns). The portfolios will be actively managed with respective changes made on every 30 June. Fama, Macbeth (1973) rolling regressions, the CAPM and APT models are utilized to analyze the effect of each factor on the pricing of the LPT shares."
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AUTHOR: Rob Kooymans
TITLE: Attracting New Office Employers To The Regional City – Some Ideas From Adelaide
KEYWORDS: Attracting New Office Employers To The Regional City – Some Ideas From Adelaide
ABSTRACT: "The new world of knowledge work has emerged somewhat stealthily, but when figures for the last 10 years are examined, it can be seen that it has had profound effects on office employment in the smaller regional cities. The big employers of office workers, such as national government, the banks and insurance companies have centralised their administrations in the larger cities. Information technology has reduced employment opportunities in the more mundane clerical areas, and those opportunities have largely been lost in the non-head office cities. On the other hand, information technology has enabled knowledge work to be done almost anywhere, leading to potential opportunities for regional cities. In particular, call centres, back office functions and technology-related businesses have become the new big employers on which governments anxious to create local jobs have focused. A study of the nature of the new office employment and the attractiveness of a central city location in the face of the suburban and work from home alternatives was carried out by the author in 1999/2000. Surveys, interviews and focus groups were used to ascertain what a regional city’s governments and property industry might do to attract both the large new businesses and the small office-based businesses that, in aggregate, employ most people. The results showed that there is a range of measures that can be taken to meet the new market realities, apart from bribing firms with taxpayers’ money. As tends to be the way of these things, there is no “magic bullet”, but rather an accumulation of small ideas. However, the paper does canvass the possibility of transplanting the suburban office/technology park to the city."
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AUTHOR: Max Kummerow
TITLE: Error Trade-Offs In Selection Of Comparable Sales For Residential Valuations
KEYWORDS:
ABSTRACT: "Regression appraisal methods promised to increase precision, reduce bias and decrease costs of residential valuations. Despite seventy years of academic literature, regression valuation methods remain caught in a dilemma of sample heterogeneity versus sample size. Sample variance, measurement errors and misspecification errors all increase with sample size. This means that in practice, the law of large numbers may not hold--precision of estimates may decrease as sample size increases. The market outcome whereby valuers use a few comparable sales and adjust for differences probably is mathematically defensible in light of these error trade-offs. The optimal number of comparable sales is usually small, but varies between valuations depending upon a trade-off between random errors that decrease as sample size increases versus biased misspecification and measurement errors that increase with sample size. Because of this problem the best way forward for computer assisted valuation methods is probably to try to develop algorithms that mimic traditional sales comparison methods. A 1983 paper by Colwell, Cannaday and Wu, and work by Robbins, Graaskamp and Dilmore are foundations for attempts to automate sales comparison valuation methods."
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AUTHOR: Max Kummerow
TITLE: Forecasting Office Space Rents By Combining Expert Opinion With Time Series Statistics
KEYWORDS:
ABSTRACT: "Better forecasting of future market conditions could reduce oversupply cycles and help reduce this major source of risk and economic inefficiency. Previous research (Kummerow, 1997, 1999) highlights supply lags as a cause of office market cycles. Supply decisions based on forecasts could help eliminate cycles by creating just in time inventory. This paper proposes forecasting teams, processes and institutions to inform major office building investment decisions. Reducing risk of oversupply would reduce costs of capital for office projects and hence make more projects feasible while reducing costs of tenancy. Models of office markets in the academic literature often use time series data to estimate responses of office market variables to predictor variables. In a world of change and complexity use of these conditional forecasting models based on statistics calculated from historical outcomes would often be misleading. Nevertheless, forecasting methods used by industry might be improved by incorporating information on historical market adjustments. The paper proposes system dynamics software as a convenient way to combine econometric results with qualitative or quantitative expert opinion to produce better forecasts and improve office market investment outcomes."
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AUTHOR: Valerie Kupke
TITLE: Implications Of Labour Market Change For First Time Homebuyers |Refereed|
KEYWORDS: "Housing Market, Homebuyers, Labour Market"
ABSTRACT: "This paper seeks to establish how access to home ownership has been or is being affected by recent changes in the Australian labour market. This is an important research question given the evidence suggesting that the traditionally high proportion of homebuyers in Australia ? as distinct from outright owners within the population has fallen by about ten percent over the last decade (Yates 1997, 1999). The research is based on a national survey of first time homebuyers in South Australia, New South Wales and Western Australia and this paper reports on the preliminary findings. The research has been supported by the Australian Housing and Research Institute (AHURI)."
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AUTHOR: Anthony Lavers
TITLE: Optimum Resolution Of Negligent Valuation Disputes |Refereed|
KEYWORDS:
ABSTRACT: "The phenomenon of disputes over allegations of professional negligence by valuers is well documented.It is an issue in many countries,including the UK,New Zealand and Australia.The author has presented papers at previous PRRES and IRES conferences alone and with fellow-researchers from Reading Univ.on negligent valuation in these three and other countries.(Auckland,Perth and Sydney and Kuala Lumpur).Given that this phenomenon exists and is common in many jurisdictions,it raises a fundamental question: what is the optimum means for resolution of such disputes? This paper addresses that question,drawing together research from two major projects in which the author has been involved,and other work.The optimal criteria are taken to be cost,time and fairness to the parties concerned and these are used to compare the different conflict-resolution options.The paper will refer to the standard role of litigation and criticisms,especially in the UK,of the courts as providers of civil justice.Reference will be made to other approaches,such as that in reported proceedings of the New Zealand Valuers'Registration Board and Appeal Board. The paper also considersADR(Alternative Dispute Resolution) and its utilisation by the RICS and research carried out in the UK on mediation and other ADR mechanisms.Reference will be made to experience in NSW ,Victoria and New Zealand respectively in the use of mediation and specialist tribunals in different but analogous areas,such as construction and planning disputes. The paper deals with disputes involving both commercial valuation,where the party engaged in the claim will normally be a commercial client or lending institution,and residential valuation,where individual private interests are concerned.Such variables as the nature of the claim,the type of property,the identity of the parties and the size of the sum in dispute are assessed as possible determinants of the optimum procedure. The paper concludes with recommendations for the optimum resolution of disputes concerning negligent valuation.The author has engaged in two recent funded research projects on dispute resolution in this and analogous areas.He is a member of Working Commission 103 of the International Council for Building Research on Dispute Resolution and Conflict Management and is a Member of the Chartered Institute of Arbitrators."
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AUTHOR: Stellan Lundström
TITLE: Uncertainty In Market Value Estimates - Implications For Property Performance Measurement |Refereed|
KEYWORDS:
ABSTRACT: "Uncertainty in market value estimates is a widely discussed topic in relation to the uses of property index information. Portfolio management, executive compensation and information to the investment community are to an increasing extent based on property index information. The main question is then: How reliable are return figures and risk expressions based on valuations and what kind of information is optimal for the end users of information? The main contribution in this paper is the results from a controlled valuation experiment where 20 valuers independent of each other estimated the value of a fictive CBD property in Stockholm using the DCF technique. All essential assumptions in the DCF are reported together with the market value. The findings are discussed in relation to the results from other valuation experiments and conclusions are drawn about a strategy for increasing the quality of information. The paper is divided in four sections. After a problem formulation follows a review of the literature related to property index and uncertainty. The experiment results are presented in a separate section followed by conclusions and recommendations for further research."
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AUTHOR: John Macfarlane, David Parker And Karen Whiley
TITLE: Forecasting Property Market Cycles: An Application Of The Rics Model To Australian Property Markets
KEYWORDS:
ABSTRACT: "In May, 2000 the RICS Research Foundation published 'Forecasting Office Supply And Demand'. The publication included a multi-equation office market forecasting model based on office market cycles for the City of London (the 'RICS Model'). The RICS Model adopted variables intended to be common to all office markets around the world and so may be expected to be capable of application to Australian office markets. Using data sourced by the Property Council of Australia, the RICS Model was applied to the Sydney office market and the results observed. Through a review of the differences arising from UK and Australian data sources and structural differences between the City and Sydney office markets, the results of the model are analysed and suggestions made to improve it’s future use in Australian property markets."
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AUTHOR: Wayne Marano And Valerie Kupke
TITLE: Managing Rare Native Vegetation Holdings In South Australia - The Implications Of Subdivision |Refereed|
KEYWORDS: "Land Management, Native Vegetation, Subdivision"
ABSTRACT: "Native vegetation is a rare and valued land holding in many parts of Australia. This paper presents the preliminary findings of a funded research program that sought to review the impact of land subdivision on the conservation and management of remnant native vegetation (RNV) in an Australian state typified by land clearing and degradation. The conservation and enhancement of South Australia’s remnant native vegetation is of considerable community and government concern. Rural land holders in South Australia have generally perceived their native vegetated areas as adding little or no value to the market value of their farms (Marano, 1990; 1999) and some have capitalized by subdividing their native vegetation areas into “nature blocks” primarily for a lifestyle market. Government, vegetation management and planning agencies believe this increased fragmentation may prove detrimental to South Australia’s remnant native vegetation (Hobbs, R.J. and Saunders, D.A. eds. 1993). This subdivision of rural land holdings into “nature blocks” is a recent phenomenon and appears to be most prevalent in locations with reasonable proximity to the coast, with river frontage, or with access to cities or larger regional towns. The subdivision of remnant native vegetation is of concern to vegetation management and conservation agencies throughout Australia (Saunders, D.A., Hobbs, R.J., Margules, C.R., 1991). The purpose of the research, which was funded by the Native Vegetation Council (SA), is to provide information that might assist in the formation of planning and conservation policy in relation to the subdivision of RNV. The research focused on the extent of the land market for “nature blocks” and identifies the socio economic characteristics, attitudes, intentions and practices of owners of nature blocks in relation to conservation and management of remnant native vegetation. The research included a review of state wide land subdivision and sales over a fifteen year period, an appraisal of varying titling practices and the application of GIS (Geographical Information Systems) methodologies in an attempt to support land agencies in the determination of appropriate planning and policy measures. The paper supports the wider application of GIS to an understanding of the land market as well as highlighting the need for consistent and accurate recording of subdivision practices in order to facilitate the efficient management and protection of rare land holdings."
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AUTHOR: Amanda J Mccallum
TITLE: What Will We Do With The Baby Boomers?
KEYWORDS: "Population Projections, Baby Boomers, Housing Accommodation, Wealth, Independence"
ABSTRACT: "The paper considers some of the factors impacting on housing requirements over the next 10 to 15 years for 'Older Australians’; specifically that segment of the population commonly referred to as ‘the baby boomers’. Determining the future direction of demand for residential housing requires consideration of the trends and the importance of those factors likely to have an effect on future accommodation needs. Given the composition of Australia's population, a key factor in this research will be the population trend for this age group. This population trend is quite different from those experienced in the past. Consequently our ability to prepare for the future for this group will need to be more carefully considered and better focused. This group of 'Older Australians' will represent a greater proportion of the population, not only due to the post war immigration and births bulge, but also longer life expectancies. In addition to the expected population bulge and diversity of demand, a number of key factors, most notably wealth and independence levels, are likely to impact accommodation requirements for this group. While the US experience may be informative, given market segmentation, geographic spread and Government structure, it may be more relevant to make comparisons between Australia and Canada."
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AUTHOR: Sandi Murdoch, Patrick Rowland And Neil Crosby
TITLE: Looking After Small Business Tenants With Voluntary Codes Or Statutory Intervention : A Comparison Of Australian And Uk Experiences.
KEYWORDS:
ABSTRACT: "Crosby, Murdoch and Markwell (DETR, 2000) have recently completed a review of commercial lease structures and the voluntary Code of Practice for Commercial Leases for the UK Government. This Code was put in place by the UK property industry in response to Government suggestions in 1993 that legislation might be necessary to protect tenants from landlords’ demands for onerous lease terms. The use of upwards only rent reviews, standard practice in the UK commercial lease, was singled out as giving rise to particular concern. The Code of Practice was an alternative to the statutory outlawing of this aspect of the lease which was perceived by landlords to be an essential feature of UK property investments. The findings of the DETR research indicated significant differences between the small business tenant and the corporate occupier. It found that small business tenants were often unrepresented in lease negotiations, had a poorer understanding of the implications of the terms of the lease than corporate occupiers and were therefore far more likely to take the first terms offered. It also found that the Code had virtually no effect on the market and was not reaching the small business tenant, at whom it was primarily aimed (Crosby, Murdoch and Rowland, 2000). The Australian experience (Commonwealth of Australia, 1997) could inform the current debate in the UK concerning the possibility of further statutory regulation. Most Australian states now have legislation in place for small business tenants which occupy shops in centres or on malls. The protection conferred includes minimum lease terms, some banning of upwards only rent reviews and some controls relating to service charge information and expenditure. In the UK, statutory renewal rights are available for business tenants. Although these can be excluded by agreement, landlords nevertheless press for the repeal of this legislation. In Australia, there has been pressure from retail tenants for the introduction of statutory rights to renew. Landlords have contended that granting such rights would adversely affect investment values. Contrasting the regimes in the UK and Australia may shed some light on the effects of statutory renewal rights and other legislative controls on the operation of leasing markets. The major aim of the paper will be to review the current legislation in a number of different States of Australia and in the UK and to compare the impact of each statutory regime on the landlord and tenant relationship. The comparison is made easier by the similarity of the common law background and the trend to shorter leases in the UK. The objectives will be to: * Review the debate concerning the protection of small business tenants and their relationship with landlords in both Australia and the UK. * Compare the outcomes of the debate in the form of statutory intervention and/or Codes of Practice and examine the reasons for each outcome. * Discuss the implications of the comparison for the future relationship of small business tenants and their landlords in each jurisdiction. The research methodology will consist of an analysis of statutes, Codes of Practice, commentaries and other literature that impacts on the research topic."
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AUTHOR: John Murdoch
TITLE: Negligent Valuers’ Liability For Market Losses In Australia And The Uk
KEYWORDS: "Property Valuation, Professional Negligence, Assessment Of Damages"
ABSTRACT: "This paper addresses the legal liability of valuers to mortgage lenders for professional negligence, in cases where the property market has fallen subsequent to the date of the mortgage loan. Previous research into the case law in the UK (Crosby, Lavers and Murdoch, 1998) found that the number of claims by lenders against valuers reached a peak following a fall in the market, when the lender would appear to be at greater risk both of borrower default and of increased loss resulting from it. The question of whether the valuer should be responsible for the lender’s additional losses attributable to the fall in the property market has been considered recently by the highest courts in both the UK and Australia. In South Australia Asset Management Corporation v York Montague Ltd (1996) (also referred to as BBL), the English House of Lords laid down a principle that was intended to limit the valuer’s liability in this respect. However, that principle was specifically rejected by the High Court of Australia in Kenny & Good Pty Ltd v MGICA (1992) Ltd (1999). This paper critically analyses the cases, decided in both the UK and Australia, in which this problem has been addressed, and reviews the literature which those cases have generated. It considers the weaknesses of the South Australia/BBL principle as demonstrated in subsequent cases concerning contributory negligence, limitation of actions and the award of interest on damages. It examines the methods of assessing damages in this context that have been put forward and demonstrates how each of these proposed methods reacts to variables in the degree of valuation error, the loan-to-value ratio adopted by the lender and the fall in the property market. The paper concludes that the South Australia/BBL principle is flawed, and suggests an alternative approach which may be acceptable to courts in both the UK and Australia."
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AUTHOR: David Ness
TITLE: A Model For Restraining The Supply Of Property So That It Matches Real Demand |Refereed|
KEYWORDS: "Property Market, Office Space, Oversupply, Obsolescence, Community Effects Or Externalities, Intervention And Regulation, Transferable Property Or Development Rights, Refurbishment, Conversion Or Disposal."
ABSTRACT: "This paper, based upon research in progress, questions the ability of the commercial property market to achieve equilibrium of supply and demand, and to account for externalities. Massive oversupply during past property booms has left many cities, such as Adelaide, with large quantities of secondary grade or ‘withdrawn’ office space, which have adverse consequences on these cities, the community, and the property market itself. With another boom and more overbuilding forecast, a model is presented for addressing the problem. This is based upon concepts utilised in regulating water markets, where ‘sustainable’ overall limits are established, and a quota of property rights is issued according to these limits, along with certain obligations. These rights can then be traded freely within the market. This model is intended to ensure that supply of office space does not outstrip real demand and, in times of low demand, that new additions to the stock are counterbalanced by replacement of lower grade buildings. It is expected to minimise the community costs of obsolescence resulting from oversupply and from owners allowing properties to deteriorate. The ten components of the model are explained, together with the operating principles. Likely advantages and disadvantages are then explored and debated. "
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AUTHOR: Graeme Newell, Peter Acheampong And Rohit Kishore
TITLE: Impact Of Australian Stock Exchange Index Changes On Property Trust Performance
KEYWORDS: "Property Trusts, Australian Stock Exchange, Institutional, Benchmarks, Index Weightings, Selling Pressure, Event Study"
ABSTRACT: "In April 2000, the Australian Stock Exchange (ASX), in conjunction with the USA Standard and Poor's index service, established new Australian stockmarket benchmark performance indices. This saw the All Ordinaries index increase from 251 companies to 500 companies, as well as new investment benchmark performance indices established as the ASX 100, 200 and 300 to meet the investment benchmarking needs of the Australian institutional investment community. A key concern in these revised ASX index procedures relates to the choice of the ongoing institutional performance benchmarks, with 70% of index fund managers utilising the ASX 300 and 30% of index fund managers favouring the ASX 200. The investment implications for property trusts are highly significant, with 17% of property trusts to be excluded from the ASX 200 (compared to the ASX 300). As a result of this ASX index exclusion or downgrading for certain property trusts, these property trusts are expected to experience considerable selling pressure and reduced portfolio weightings by institutional investors. With the key events in this process being the announcement of these ASX revisions (March 9, 2000) and the introduction of these ASX revisions (April 3, 2000), the purpose of this paper is to utilise event analysis to assess the impact of the announcements and revisions to the ASX investment benchmarks on the share price and trading volume of those property trusts excluded from the revised ASX investment benchmarks."
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AUTHOR: Graeme Newell And Peter Acheampong
TITLE: The Dynamics Of Property Trust Risk And Correlation
KEYWORDS: "Property Trusts, Semicorrelation, Asset Risk, Inter-Asset Correlation, Portfolio Diversification"
ABSTRACT: "The role of property trusts in investment portfolios has attracted considerable attention in recent years. For all investments, inter-asset correlations change over time, and are linked to economic activity, property cycles and business cycles. Whilst the usual measure of inter-asset correlation represents the average co-movement over a specified time period, knowing how assets co-move in different market scenarios is important for portfolio management, asset allocation weightings and understanding future inter-asset correlation dynamics. Separate inter-asset correlations in different market environments (eg: active or declining markets) enable the detection of whether changing correlations result in reduced portfolio diversification benefits. As such, semicorrelation (rather than correlation) more effectively differentiates between asset co-movements in different or segmented market conditions. Linked with increased market volatility, increased inter-asset correlations result in reduced portfolio diversification benefits in an investment environment when portfolio risk reduction and diversification benefits are most needed in a mixed-asset portfolio context. The purpose of this paper is to examine semicorrelation measures and changing asset risk profiles between property trusts and the stockmarket under different investment and property cycle/business environments. Under these various investment scenarios, the investment implications will be critically assessed, particularly regarding reduced portfolio diversification benefits in environments of increased market volatility and increased inter-asset correlations."
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AUTHOR: Elias Oikarinen, Hannu Kahra And Asko Miettilä
TITLE: The Diversification Effect Of Introducing Australian And Us Housing Property Into Finnish Housing Property Portfolio |Refereed|
KEYWORDS:
ABSTRACT: "In this paper we show that a Finnish investor can benefit substantially by introducing Australian and US housing property into his housing property portfolio. We use historical total return data on a few large towns and cities in Finland and Australia and on a few states in the United States. The basis for the analysis lies in modern portfolio theory. The empirical results show that correlation coefficients between American, Australian and Finnish areas are small measured in Finnish currency. Because of this the mean-variance opportunity set moves substantially by introducing Australian and US housing property into a Finnish housing property portfolio. However, the high transaction and information costs are relevant. Furthermore, the analysis shows that exchange rate fluctuations are a major factor influencing foreign housing property returns and standard deviations expressed in the Finnish currency."
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AUTHOR: Ismail Omar, Aminah Md Yusof And Abd Rahman Samad
TITLE: The Implication Of Economic Recession On Tourism Industry In Malaysia - A Case Study In Kuantan
KEYWORDS:
ABSTRACT: "The economic recession has caused oversupply of hotel accommodations in Malaysia. In Kuantan, for example, during recession in 1998 to 1999, there was about 47% occupancy rates of hotels.The rental level had dropped by almost 40% during the same period. This paper seeks to examine the impact of economic recession on tourism industry in Malaysia. The fact that the financial crisis had weakened the ringgit which should attract more tourists to come into the country. In contrast, tourist arrivals were reduced significantly. Therefore,the study looks into the way in which rates for hotel accommodation had been affected by lack of tourist arrival. Interviews were carried out with tourists and hoteliers within the case study area in Kuantan.Data collected were analysed using quantitative analysis to produce findings on factors that caused declining trends in hotel accommodations."
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AUTHOR: Ismail Omar
TITLE: The Use Of Institutional Economics Perspective In Explaining The Effect Of Restrictions In Interest On Indigenous Land Market In Kuala Lumpur
KEYWORDS: "Institutions, Institutional Economics Analysis, Indigenous Property Market, Land Supply Constraints"
ABSTRACT: "The economic growth of about 8.0 per cent from 1990 to 1997 had witnessed the increasing trends in property market in Malaysia. Unexpectedly, the Asian region had undergone a financial turmoil since mid-1997. As a result, the financial crisis had adversely affected the property market in Kuala Lumpur. Beside the economic recession and property market slump since mid-1997 to 1999 due to financial crisis, the general market of development land is restricted by land supply constraints in Kuala Lumpur. This is due to certain customary lands with restrictions in interest which limit the market among indigenous people only. The implication of formal restrictions in interest affect the trends in its property market. Therefore, the indigenous property market scenario may be explained by looking at institutions and their changes affecting them. This paper seeks to examine the implications of formal restriction in interests on the supply of indigenous land beside the pressure for more land for housing developments in Kuala Lumpur. It is based on a study that reveals that the restrictions in interest limit the demand for and restrict the supply of land for development purposes. The data were gathered through an observation and interview with landowners and developers. The main findings showed that formal and informal rules affected agents’ decision to develop their land. However, the geographical factors play important role in verifying the impact of institutions where property located along prime roads with commercial land uses are less affected compared to residential lands at inferior locations"
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AUTHOR: Pachara Pacharavanich And Peter Rossini
TITLE: Examining The Potential For The Development Of Computerised Mass Appraisal In Thailand
KEYWORDS: "Valuation, Appraisal, Automated Valuation, Case Based Reasoning, Residential Valuation, Mass Appraisal"
ABSTRACT: "This paper examines the potential for the development of an expert system to value residential properties in Thailand. With some 27 million land titles and less than 100 professionally qualified valuers in the valuation authority, the task of valuing property for taxation purposes in Thailand is a major problem. This problem has long been recognized and as a part of the Thailand land titling project measures have been underway since 1975 to address the problem. Over the last quarter of a century, significant developments have been made in Thailand while at the same time there have been major advances in mass appraisal around the world based mainly on greater computerisation. This paper examines the scope of the problem in Thailand and the history of the development of the valuation authority in Thailand. The paper also examines the current situation in terms of the level and volumes of professional qualified personnel, access to property data and some of the methodologies that have been proposed to automate the mass appraisal process. Research into different methodologies for mass appraisal in Thailand are critically examined and some suggestions for future development are proposed."
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AUTHOR: Geoff Page And Valerie Kupke
TITLE: Promoting Internationalism As A Graduate Quality Within The Bachelor Of Business (Property) |Refereed|
KEYWORDS: "Graduate Quality, Internationalism, Real Estate Education"
ABSTRACT: "The Property Group within the School of International Business at the University of South Australia has been involved in teaching professional programs to local and overseas students for almost 20 years. In that time they have experienced institutional, regulatory and educational changes which have significantly impacted on the content, delivery and context of the professional programs for which they are responsible. Throughout this period they have sought to equip students professionally for employment both in Australia and overseas. This is an ongoing commitment and this project offers the opportunity to review the methodologies, outcomes and opportunities which will ensure future job placements for students. As of 2000 the Qualities of a University of South Australia Graduate have been determined as follows. 1. Operates effectively with and upon a body of knowledge of sufficient depth to begin professional practice. 2. Is prepared for lifelong learning in pursuit of personal development and excellence in professional practice. 3. Is an effective problem solver, capable of applying logical, critical and creative thinking to a range of problems. 4. Can work both autonomously and collaboratively as a professional. 5. Is committed to ethical action and social responsibility as a professional and a citizen. 6. Communicates effectively in professional practice and as a member of the community. 7. Demonstrates an international perspective as a professional and as a citizen. The focus of this paper is to document how the Bachelor of Business (Property) program at the University of South Australia encourages students in Graduate Quality 7 (GQ7) which is to “demonstrate international perspectives as a professional and as a citizen”. Internationalism as a Graduate Quality is first placed in context within the program by reviewing items such as educational profile, off shore delivery and staff development. Next consideration is given to how GQ7 is introduced into teaching and learning practices in the Bachelor of Business (Property) program in the first year and how these practices are extended using more complex and demanding methodologies in later years. This is demonstrated by a review of nine property subjects identifying for each the development of GQ7 through subject aims, objectives, content and assessment as well as the particular generic indicators which are developed in each subject. The project was funded by means of a grant awarded by the Flexible Learning Centre of the University of South Australia."
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AUTHOR: Dr David Parker
TITLE: Observations On The Use Of Generic Software For The Valuation Of Major Investment Properties
KEYWORDS:
ABSTRACT: "Numerous generic valuation software packages are now available for application to major investment properties. One such generic software package is Cougar. Generic software is now in widespread use by both major firms of valuers and institutional investors. As an example of generic software, the structure and approach of the Cougar software package is outlined and compared to that of traditional valuation practices, with areas of significant process difference identified and considered. The impact of the widespread use of generic software packages is then considered in the context of the evolution of the valuation paradigm and the role of the valuer, with suggestions made for possible changes to current valuation practice."
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AUTHOR: Wejendra Reddy
TITLE: "Property Trust Investment For Fiji. Opportunities, Constraints And Viability"
KEYWORDS: "Property Trusts, REITs, Securitisation, Investment, Market Stimulation, Fiji"
ABSTRACT: "In the last decade property trusts and real estate investment trusts have had a major impact on the property markets of Australia and the US. This paper charts the growth of these securitiesed investments, looking at Australia and United States in particular. It goes on to investigate the process and pitfalls that are involved in the establishment and operation of a successful trust vehicle. Fiji has had an active stock and a stagnant property investment market over the last five years with no significant commercial transactions. A few key players, including overseas banks, insurance companies and state superannuation fund, dominate the property market. There are few opportunities for individual investor to obtain exposure in the commercial, retail, industrial or tourism property sectors although residential investments remained popular prior to the current political unrest. This paper undertakes a detailed study into the opportunities, constraints and viability of setting up property trusts in Fiji. It builds on the Australian and United States experience to suggest a framework for establishing property trusts. The research takes a qualitative approach and data analysis is grounded on the experience of experts in the market, from Australia and Fiji, to suggest how to optimise opportunities in a Fijian context."
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AUTHOR: Richard Reed
TITLE: The Increasing Role Of Demography In Residential Property Market Analysis |Refereed|
KEYWORDS: "Residential Housing Markets, Housing Values, Demographics, Social Structure."
ABSTRACT: "Investment in housing represents the largest single source of wealth for individuals and has an important role in the macro economy. Traditional economic indicators cannot always observe the degree of purchaser and vendor willingness and therefore consideration should also be given to characteristics of buyers and sellers in the marketplace. This study draws the disciplines of housing research and demography closer and looks to social indicators for an insight into residential housing markets. This research analyses changes in the value of established residential house prices in Brisbane and the influence of variations in social structure on a longitudinal time series basis. It is primarily concerned with three important cross-sectional variables: location, time and human behaviour. Values for established residential housing in Brisbane, Australia are analysed from 1976 to 1996. Demographic variables from five censuses conducted during this period are included in the analysis. A conceptual model based on 'Social Area Analysis' is proposed using Principal Components Analysis and Multiple Regression Analysis to assess the relationship with established residential house values. The results confirmed the existence of strong linkages between social constructs and established house prices. Significantly the dimension known as Socio-economic Status was closely associated with higher priced suburbs and this relationship has strengthened considerably. The importance of Age constructs in relation to house values was also acknowledged and can be broken down even further into various age categories. While it is acknowledged that established house values are significantly influenced by economic and political factors, this research confirmed that serious consideration must also be given to social factors and demographic variables. "
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AUTHOR: Naruson Romkaew
TITLE: Evaluating The Contribution Of Infrastructure Effects On Residential Property
KEYWORDS:
ABSTRACT: "Property value is dependent upon many characteristics such as the physical characteristics of property; location of the site in relation to employment centers and other recreational facilities accessibility). In addition the social and economic characteristics of neighborhood; including the presence of such amenities as views, parks, schools and community services affect value. Those attributes are usually provided by the State and Local governments through their various policies and services. Thus property price will be suburb (or locational) dependent due to the attributes with respect to specific desirable services. This paper is concerned with the effect of the established infrastructure as well as social and culture services on property values in Camberwell by using hedonic regression technique.. The analysis is based on data for 192 residential sales in the city of Camberwell (Victoria) during the period January 1990 to May 2000. The results of the analysis indicate that the presence of prestigious schools, parks, leisure facilities are important housing attributes in determining value. This suggests that different attributes are valued differently when combined with other attributes. Key locational factors are fundamental in the determination of house prices."
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AUTHOR: Patrick Rowland
TITLE: Lease Or Buy? How Management Of The Asset Upsets The Equivalence
KEYWORDS: "Corporate Property Management, Lease Analysis"
ABSTRACT: "It can be proved that, under certain assumptions, buying is financially equivalent to leasing. However, this is merely a convenient device to explore why leasing or buying is not a matter of indifference to users of real estate, plant or equipment. This paper shows why the responsibility for the real estate is one of the main reasons that the choice is of importance. The care of real estate by owners and tenants is likely to be more important than would be the case for other leased assets such as manufacturing plant and equipment, which are the subject of most of the leasing literature. Three aspects of the maintenance and management of properties may affect the choice between owning and renting commercial premises. These are the availability of specialised skills, the willingness to bear the uncertain expenses and the lack of care that may arise from splitting the interests in the property between a landlord and a tenant. Using data collected by the Property Council of Australia for the costs of occupying and looking after office space, the consequences of leasing or buying are explored. The data reveals the volatility of operating expenses. It also suggests that there are greater opportunities for landlords than owners-occupiers to reduce costs and perhaps offset the risks of operating expenses against property income and amongst properties. Simulation of the choice between leasing and buying shows how owner-occupation avoids the conflicts of interest that commonly arise between landlords and tenants. It is concluded that, if caring for the property were the only issue, leasing would be preferable to owning when the specialised skills of landlords outweigh the adverse consequences of tenancy conflicts."
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AUTHOR: Prof. Dr. Karl-Werner Schulte
TITLE: Interdisciplinary Approach Of Real Estate Education
KEYWORDS:
ABSTRACT:
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AUTHOR: Prof. Dr. Karl-Werner Schulte
TITLE: Real Estate Education At The European Business School
KEYWORDS:
ABSTRACT:
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AUTHOR: Prof. Dr. Karl-Werner Schulte
TITLE: "Reits, Australian And German Property Shares"
KEYWORDS:
ABSTRACT:
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AUTHOR: Anupam Singh
TITLE: Philosophical Perceptions Of Pacific Property - Women And Land Tenure
KEYWORDS: "Patriarch, Matriarch, Custom, Land Tenure, Pacific"
ABSTRACT: "In most of the Pacific customary rights to land have predominantly been a matter for men. Title to land traditionally passes from father to son. In Micronesia and parts of Central Melanesia rights are transmitted through women, but men still exercise the main powers over land. In the Cook Islands,women take active part in land matters and are now holding chiefly titles. Such changes are moving to bilateral inheritance rights. Women own land rights in the matrilineal societies in Vanuatu. Tonga remains staunchly patriarchal. This paper explores the background to the role of women in Pacific land tenure. It investigates how appropriate traditional systems that restrict ownership and inheritances of land on the grounds of gender are amidst island nations that wish to operate within contemporary society. The research questions the conflict between tradition, evolution and individual human rights in suggesting directions for the future of gender and land tenure issues in the Pacific"
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AUTHOR: Dr Garrick Small
TITLE: A Study Of The Effect Of Commercial Ethics On Distribution |Refereed|
KEYWORDS: "Behavioural Economics, Ethics And Distribution, Just Price, Just Wages, Self-Interest, Welfare And Self-Restraint"
ABSTRACT: "The effect of cultural values on the operation of markets tends to be overlooked in economic theory. Western theory assumes a utility maximizing economic agent, which may be consistent with Western culture, but is foreign to many other peoples. This study is an exploration of the impact of cultural values, as commercial ethics, on economic distribution. The theory and literature is briefly reviewed and a pilot experiment described. The experiment involved a six-sector economy that was operated within two cultural paradigms. The two paradigms approximated to Western individualism and pre-industrial traditional culture following Tönnies’s concepts of Gesellschaft and Gemeinschaft respectively. The pilot study revealed that the Gesellschaft economy was more attractive to most members of the economy and returned short-term benefits, but it generally under-performed the Gemeinschaft economy for most sectors in the longer term. The behaviour of the land sector was especially significant. The Discussion includes linkages to historical and anthropological findings and makes suggestions for further research. The experiment raises important methodological issues regarding the nature of economic agents and positivist epistemology. These are dealt with including pedagogical and future research implications."
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AUTHOR: Dr Garrick Small And Ass.Prof. Angelo Karantonis
TITLE: "Property Education, Training And Phenomenalis" |Refereed|
KEYWORDS: "Property Education And Training, Phenomenalism, Professionalism"
ABSTRACT: "The purpose of this paper is to review several major issues as they affect the design and presentation of property courses. It is argued that university level courses differentiate themselves from technical training programmes by equipping students with background and depth considerably beyond what is necessary for a particular occupational role. This type of education should equip the student with a broad background to the nature and operation of occupational roles and their relationship to human society. By contrast, technical training is directly related to conveying expertise in occupational skills. Training under this definition is highly job related and may avoid any depth or breadth that is not clearly related to immediate occupational requirements. The technically trained person is immediately employable and productive, but is incapable of responding to the challenges of change or to the interpretation of the relationship between his or her occupation and the polis. Property courses need to contain both education and training. The balance between the two is considered in the light of phenomenological approaches to education that have gained acceptance in recent times. These approaches can be interpreted as taking training to an extreme, where practical competencies can be rapidly developed with negligible background understanding. The applications and challenges of these approaches are considered with a focus on its application to university programmes. The paper concludes with recommendations for the design of university level property programmes."
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AUTHOR: Dr. Garrick Small
TITLE: Property Theory: What It Is And Why It Should Be Taught |Refereed|
KEYWORDS: "Property Theory, Property Education, Realism And Property, History Of Property Theory"
ABSTRACT: "The real estate and property industry implicitly stands on the current Western institution of private property, however, systematic investigation into the nature and problems of that institution is seldom found as a core topic in property education. This paper reviews the history and issues that surround the theory of property, its relevance to comtemporary issues and its place in property education at a university level. The paper concludes that students will only be able to respond rationally to issues that challenge the current institution if they have a sound understanding of the theory of property."
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AUTHOR: Jittaporn Sriboonjit And Peter Rossini
TITLE: Evaluating The Development Of Property Education In Thailand
KEYWORDS: "Property Education, Valuation Education, Curriculum Development, Staff Development, Property Industry, Property Education In Asia"
ABSTRACT: "In 1997 the first student intake occurred for a new property education program in Thailand. The program aimed at dramatically improving the property education opportunities in Thailand and to increase by ten times the number of professional valuers in Thailand, over fiev year period . Most similar new property programs aim at increasing the numbers of professional valuers by sending large volumes of students offshore or by employing overseas academics to teach valuation onshore. This program aims to develop a professional academic teaching unit of Thai nationals within five years at the same time as providing education to hundreds of local students. This paper describes how the program was designed to work, critically evaluates the outcomes after four student intakes, proposes further modifications and makes some suggestions for other organizations interesting in following the same path."
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AUTHOR: Kevin K Siu And Shi Ming Yu
TITLE: Using Response Surface Analysis In Mass Appraisal To Examine The Influence Of Location On Property Values In Hong Kong |Refereed|
KEYWORDS: "Mass Appraisal, Location Value Response Surface Modeling, Regression"
ABSTRACT: "In mass appraisal, Location Value Response Surface (LVRS) modeling has proven to be a powerful and sophisticated tool in the analysis of the influence of location on the values of single-family houses in the United States. The technique uses a “smoothed” response surface as a function of location adjustment, representing the relative variation of location value within the whole area geographically. Unlike traditional approaches such as geographical stratification, the LVRS removes the location value inconsistency problem at neighbourhood boundaries. This paper proposes to illustrate in a case study, how the technique can be used to value high-rise office units for rating purposes in Hong Kong by adopting a standardisation method to derive the location factor. The prediction of property values is improved using the model."
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AUTHOR: Connie Susilawati
TITLE: "Motivation And Perception Factors Influence Buying Home Behaviour In Dilly, East Timor"
KEYWORDS: "Low Cost Housing, Buying Behaviour, Consumer Behaviour, Motivation, East Timor"
ABSTRACT: "Demand of low cost housing increase from 1995 to 1997 which is shown by the number of housing loan approval. In order to develop the most suitable marketing plan, developer need to know some factors which are influence the decision making process of buying house. This research used a residential development in PT Delta Comoro Permai, Dilly as a case study. A survey to home owners have been done to evaluate the motivation and perception factors in buying home behaviour. The survey has been done on the 3rd August to 29th August 1998. In this study, four main components have been examined. Physical and linkage are not as important as environment and utilities for the home buyer. Moreover, the result is consistent with developer’s motto ‘clean, secure, aesthetic, healthy and prosperity’. This study provide further recommendation in the environment and utilities components for the new development in the future."
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AUTHOR: Connie Susilawati
TITLE: Student Dormitory Development Plan With Linear Programming Method |Refereed|
KEYWORDS: "Student Dormitory, Student Housing, Property Development, Linear Programming"
ABSTRACT: "Student dormitory is a very important facility which have to be provided by university. University should not only provide accommodation but also other supporting facilities. However, there are some constraints that should be considered by decision maker. In order to optimise the decision, linear programming has been used for this site allocation problem. This research want to calculate number of rooms and area of each facility which could satisfy the constraints and obtain optimum profit. The method of this research is by conducting a survey to understand the required facilities, financial ability and the competitor’s rent fee. Gathering information and developing mathematical model is the most difficult part of this research. Moreover, some facilities depends on number of students which could be counted by number of bedrooms. This research recommend number of bedrooms and bathrooms also area of each facility, such as: living room, dining room, common room, cafeteria, book shop, mini market, phone booths, sport facilities and parking space. Since this investment is financially feasible, the student dormitory could be built in the future. Moreover, the result could be used as an input for the further design."
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AUTHOR: Paul Syms
TITLE: Changing Cities: The Cases Of Manchester And Sheffield |Refereed|
KEYWORDS: "Cities, Industrial Decline, Urban Renewal, Real Estate Development, Infrastructure Provision."
ABSTRACT: "According to Haughton and Hunter (1994, p39) “Cities attract people and businesses to them for many reasons, but perhaps foremost amongst these dynamic impulses is the search for jobs and wealth-creation opportunities”. They then went on to say that “Cities can decline, but they do so relatively slowly, and in recent centuries very few have disappeared altogether, except perhaps some on the resource frontier, one industry towns dependent on the extraction of a finite resource, often in hostile environments”. This paper will examine the case of two British cities, Manchester and Sheffield, both of which were major industrial centres but have, in terms of their traditional industries, suffered serious decline over the second half of the twentieth century. Besides suffering from a reduction in their industrial base both cities have seen a decline in population and have experienced significant obsolescence in terms of their built environment – buildings and infrastructure. The two cities are approximately 35 miles apart, separated by a major geological feature – the Pennine chain of hills which form the ‘backbone of England’. They serve two different regions of England, the North West and Yorkshire & Humber respectively. Although relatively close to each other in geographical terms, physical communications are mainly restricted to three main road routes and a railway. It is therefore not surprising that the industrial origin of the two cities is very different. Manchester was founded on the cotton and textile industries and in consequence the city’s built environment was dominated by brick-built multi-storey spinning and weaving mills and warehouses. Sheffield on the other hand was the home of the cutlery industry and associated metal trades. Its built environment relates to the development of the industry from small workshops to major steel mills. The ways in which the two cities have attempted to stem, and reverse, their decline has been very different but there are also many similarities. The paper will examine the physical regeneration of Manchester and Sheffield through different forms of real estate development and the provision of infrastructure. It will seek to draw conclusions as to the success or failure of urban renewal policies in the context of these two manufacturing cities. The lessons may then be applicable to other cities elsewhere in the world"
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AUTHOR: Erica Walker
TITLE: Never Send To Know For Whom The Bell Tolls Ask How Much It Costs To Toll It
KEYWORDS:
ABSTRACT: "The Bell Tower on the foreshore of the Swan River in Perth, Western Australia has suffered a controversial beginning. The cry has gone up from opposition political parties, special interest groups and the public alike - “…what is the government doing spending money on this, when we could build more schools, better equip our hospitals, provide more police ….” This paper looks at the costs of the Bell Tower Project, and asks - can they be justified - on economic or any other grounds? What is the Bell Tower worth? The property will be an income producing property - charging entry for tours of the tower, and containing a retail outlet. Is the income sufficient to justify the expense? Should we be conducting a pure feasibility study - or should we be asking the broader question - what costs and benefits should be considered that are not so easily expressed in dollar terms? The principle of spending money for non-economic benefit, or non-measurable economic benefit, is presenting some problems for democratic governments in the economic rationalist age - not the least of which, is that when economic measurement is replaced with qualitative value judgements, then someone has to make those judgements - public response to any artists impression of any future public project, or any public art reveals how personal and difficult that can be."
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AUTHOR: Erica Walker
TITLE: Never Send To Know For Whom The Bell Tolls Ask How Much It Costs To Toll It
KEYWORDS:
ABSTRACT: "The Bell Tower on the foreshore of the Swan River in Perth, Western Australia has suffered a controversial beginning. The cry has gone up from opposition political parties, special interest groups and the public alike - “…what is the government doing spending money on this, when we could build more schools, better equip our hospitals, provide more police ….” This paper looks at the costs of the Bell Tower Project, and asks - can they be justified - on economic or any other grounds? What is the Bell Tower worth? The property will be an income producing property - charging entry for tours of the tower, and containing a retail outlet. Is the income sufficient to justify the expense? Should we be conducting a pure feasibility study - or should we be asking the broader question - what costs and benefits should be considered that are not so easily expressed in dollar terms? The principle of spending money for non-economic benefit, or non-measurable economic benefit, is presenting some problems for democratic governments in the economic rationalist age - not the least of which, is that when economic measurement is replaced with qualitative value judgements, then someone has to make those judgements - public response to any artists impression of any future public project, or any public art reveals how personal and difficult that can be."
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AUTHOR: Timoci Waqaisavou
TITLE: Tourism In Fiji: Attitudes And Involvement Of The Native Landowners In The Accommodation Sector.
KEYWORDS: "Native Landowners, Attitudes, Involvement, Fiji"
ABSTRACT: "The study sets out to examine the attitudes and involvement of the native landowners in the accommodation sector of the tourism industry in Fiji. A substantial number of tourist accommodation in the country is situated on native land (as opposed to State or Freehold land) and almost all of these accommodations are on leased properties. An insignificant number of these accommodations are on lands not leased. Studies undertaken on the tourism industry in Fiji have looked at the economic, marketing and the social and cultural aspects of the business. To the best of the author’s knowledge no in depth study has been undertaken to assess the relationship between tourism development and land ownership, particularly land ownership in the traditional Fijian context. This study will thoroughly examine the attitude and involvement of the native landowners in the accommodation sector in three different settings. First, the case where one of the native landowners, by virtue of his traditional right as a landowner, utilises a portion of his owning unit’s holding to establish a tourist resort. Second, two brothers and a sister, landowners of a partial of land over which a company leases and operates a tourist destination, are also shareholders to the company. Third, a land owning unit, owners of an island over which a tourist destination is located are mere beneficiaries of the terms of the lease. The three settings represent the typical types of involvement of the native landowners in the accommodation sector of the tourism industry in Fiji. For comparison purposes, a tourist accommodation situated on freehold land is also the subject of this study. Being both owners of 83.5% of the country’s total land area and also owners of land over which a substantial number of tourist destinations are located, it is considered that the native landowners’ attitude and involvement in the industry has to be properly understood. The long-term stability and sustainability of the industry in the country is, to some extent, dependant on the goodwill of the native landowners. This will only be realised if their attitude and level of involvement is thoroughly understood with the view to addressing any real or perceptual shortcomings."
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AUTHOR: Timoci Waqaisavou
TITLE: Tourism In Fiji: Attitudes And Involvement Of The Native Landowners In The Accommodation Sector.
KEYWORDS: "Native Landowners, attitudes, involvement, Fiji"
ABSTRACT: "The study sets out to examine the attitudes and involvement of the native landowners in the accommodation sector of the tourism industry in Fiji. A substantial number of tourist accommodation in the country is situated on native land (as opposed to State or Freehold land) and almost all of these accommodations are on leased properties. An insignificant number of these accommodations are on lands not leased. Studies undertaken on the tourism industry in Fiji have looked at the economic, marketing and the social and cultural aspects of the business. To the best of the author’s knowledge no in depth study has been undertaken to assess the relationship between tourism development and land ownership, particularly land ownership in the traditional Fijian context. This study will thoroughly examine the attitude and involvement of the native landowners in the accommodation sector in three different settings. First, the case where one of the native landowners, by virtue of his traditional right as a landowner, utilises a portion of his owning unit’s holding to establish a tourist resort. Second, two brothers and a sister, landowners of a partial of land over which a company leases and operates a tourist destination, are also shareholders to the company. Third, a land owning unit, owners of an island over which a tourist destination is located are mere beneficiaries of the terms of the lease. The three settings represent the typical types of involvement of the native landowners in the accommodation sector of the tourism industry in Fiji. For comparison purposes, a tourist accommodation situated on freehold land is also the subject of this study. Being both owners of 83.5% of the country’s total land area and also owners of land over which a substantial number of tourist destinations are located, it is considered that the native landowners’ attitude and involvement in the industry has to be properly understood. The long-term stability and sustainability of the industry in the country is, to some extent, dependant on the goodwill of the native landowners. This will only be realised if their attitude and level of involvement is thoroughly understood with the view to addressing any real or perceptual shortcomings."
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AUTHOR: Craig Watkins, Neil Dunse, And Chris Leishman
TITLE: Testing For The Existence Of Office Submarkets: A Comparison Of Evidence From Two Cities
KEYWORDS:
ABSTRACT: "Most conceptual and applied economic models of the structure of urban office markets have been developed from traditional location theory. In their basic form, these models tend to posit a trade off between accessibility and space. In the light of changing business practices and decentralisation, however, some authors have noted that the influence of agglomeration economies on the locational dynamics of commercial property markets may be declining. In this paper, we seek to undertake an indirect test of the power of intraurban office location theory. The paper is developed in two stages. In the first part, we examine the theoretical case for the existence of submarkets in urban office markets and outline the implications of submarket existence for traditional office location theory. In the second part of the paper, using data from Edinburgh and Glasgow, we undertake empirical tests for submarket existence. A comparison of the results from the two city markets provides limited evidence of the existence of spatial submarkets and suggests that markets might take different spatial forms depending on the urban context. The paper concludes by highlighting the need to account for the complex structure of urban property markets in developing models for property appraisal, taxation and land use planning purposes."
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AUTHOR: Craig Watkins, Neil Dunse, And Chris Leishman
TITLE: Testing For The Existence Of Office Submarkets: A Comparison Of Evidence From Two Cities
KEYWORDS:
ABSTRACT: "Most conceptual and applied economic models of the structure of urban office markets have been developed from traditional location theory. In their basic form, these models tend to posit a trade off between accessibility and space. In the light of changing business practices and decentralisation, however, some authors have noted that the influence of agglomeration economies on the locational dynamics of commercial property markets may be declining. In this paper, we seek to undertake an indirect test of the power of intraurban office location theory. The paper is developed in two stages. In the first part, we examine the theoretical case for the existence of submarkets in urban office markets and outline the implications of submarket existence for traditional office location theory. In the second part of the paper, using data from Edinburgh and Glasgow, we undertake empirical tests for submarket existence. A comparison of the results from the two city markets provides limited evidence of the existence of spatial submarkets and suggests that markets might take different spatial forms depending on the urban context. The paper concludes by highlighting the need to account for the complex structure of urban property markets in developing models for property appraisal, taxation and land use planning purposes."
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AUTHOR: Peter C. Wills
TITLE: "Corporate Real Estate Asset Management, Just An Extension Of Facilities Management Or Are Specific Skills And Competencies Required ?"
KEYWORDS: Corporate Real Estate. Real Estate Asset Management. Property Management. Facilities Management. Added Value Process. Corporate Real Estate Operations. Outsourcing Of Real Estate Asset Management
ABSTRACT: "This paper will investigate the rapidly changing role of corporate real estate asset management. In carrying out this, an overview of the following current issues in Corporate Real Estate Management (CREM) will be covered: CREM skills and competencies, decision making processes for CREM, the financing of CREM, internal and external performance measurement of CREM possibilities. Corporate real estate management practices will also be studied having regard to strategic CREM in comparison to property management, facilities management and asset management roles and functions. (Relating back to skills and competencies). The outsourcing of CREM will be investigated, briefly, in relation to the concept of the value adding process. Many corporate functions have been outsourced adding to the bottom line profit, can this be done with CREM? The main question to arise is, ‘do firms make the most of their corporate real estate, both in the asset value sense and the management function process?"
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AUTHOR: Peter C. Wills
TITLE: "Corporate Real Estate Asset Management, Just An Extension Of Facilities Management Or Are Specific Skills And Competencies Required ?"
KEYWORDS: Corporate real estate. Real estate asset management. Property management. Facilities Management. Added value process. Corporate real estate operations. Outsourcing of real estate asset management
ABSTRACT: "This paper will investigate the rapidly changing role of corporate real estate asset management. In carrying out this, an overview of the following current issues in Corporate Real Estate Management (CREM) will be covered: CREM skills and competencies, decision making processes for CREM, the financing of CREM, internal and external performance measurement of CREM possibilities. Corporate real estate management practices will also be studied having regard to strategic CREM in comparison to property management, facilities management and asset management roles and functions. (Relating back to skills and competencies). The outsourcing of CREM will be investigated, briefly, in relation to the concept of the value adding process. Many corporate functions have been outsourced adding to the bottom line profit, can this be done with CREM? The main question to arise is, ‘do firms make the most of their corporate real estate, both in the asset value sense and the management function process?"
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AUTHOR: Peter C. Wills
TITLE: "E-Learning, The Future For Property Studies Using Mutli-Modal Methods For Distance-Disadvantaged (Correspondence) And Face To Face Students"
KEYWORDS: E-Learning. External Studies. Correspondence Studies. Property Studies For Distance Students. Distance-Disadvantaged Students. Multi-Modal Property Studies. On-Line Property Studies. Web Based Property Studies
ABSTRACT: "Recently there has been a perceived swing to computer or on-line learning. (Now referred to as ‘e-learning’). This paper will investigate the changing methods of delivering subjects to property students. The University of Western Sydney, Bachelor of Commerce (Property Economics) is the only undergraduate degree offered by correspondence in Australia and as such has taken the bold step of offering subjects both by the traditional printed note format as well as the new on-line (e-learning) process using the WebCT platform. To achieve this the WISE (Web Interactive Student Environment) unit has produced a web site that enables all correspondence students to access quality interactive material. To support this environment and produce quality material the important role of the Centre for Higher Education Development (CHED) and the Flexible Learning Unit (FLU) will be reviewed. The importance of interactive learning using ‘Horizon-live’ on line methods will also be covered. The final aspect of this paper will discuss the cost benefit (if any) of using on-line tutorials rather than creating and maintaining more face to face tutorial presentations. This may appear to give the lecturer more time for research, but preliminary studies may indicate the reverse."
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AUTHOR: Peter C. Wills
TITLE: "E-Learning, The Future For Property Studies Using Mutli-Modal Methods For Distance-Disadvantaged (Correspondence) And Face To Face Students"
KEYWORDS: E-learning. External studies. Correspondence studies. Property studies for distance students. Distance-disadvantaged students. Multi-modal property studies. On-line property studies. Web based property studies
ABSTRACT: "Recently there has been a perceived swing to computer or on-line learning. (Now referred to as ‘e-learning’). This paper will investigate the changing methods of delivering subjects to property students. The University of Western Sydney, Bachelor of Commerce (Property Economics) is the only undergraduate degree offered by correspondence in Australia and as such has taken the bold step of offering subjects both by the traditional printed note format as well as the new on-line (e-learning) process using the WebCT platform. To achieve this the WISE (Web Interactive Student Environment) unit has produced a web site that enables all correspondence students to access quality interactive material. To support this environment and produce quality material the important role of the Centre for Higher Education Development (CHED) and the Flexible Learning Unit (FLU) will be reviewed. The importance of interactive learning using ‘Horizon-live’ on line methods will also be covered. The final aspect of this paper will discuss the cost benefit (if any) of using on-line tutorials rather than creating and maintaining more face to face tutorial presentations. This may appear to give the lecturer more time for research, but preliminary studies may indicate the reverse."
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AUTHOR: Aminah Md Yusof
TITLE: Economy And Commercial Construction Cycle In Malaysia
KEYWORDS: "Cycles, Business, Construction, Commercial, Offices, Retail And Hotels."
ABSTRACT: "An analysis of economy, construction and commercial property cycle indicates that for some type of construction sector, there is evidence of general economy influence. Nonetheless, there is insufficient to conclude the significant influence of general economy on certain type of development in Malaysia. Whilst, it is easier to show such impact on office sector, it cannot be statistically proven for hotel and retail. The role of other factors such as, institutional, which has not been considered in this study may offer better explanation on the cycle of such developments."
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AUTHOR: Aminah Md Yusof
TITLE: Economy And Commercial Construction Cycle In Malaysia
KEYWORDS: "Cycles, business, construction, commercial, offices, retail and hotels."
ABSTRACT: "An analysis of economy, construction and commercial property cycle indicates that for some type of construction sector, there is evidence of general economy influence. Nonetheless, there is insufficient to conclude the significant influence of general economy on certain type of development in Malaysia. Whilst, it is easier to show such impact on office sector, it cannot be statistically proven for hotel and retail. The role of other factors such as, institutional, which has not been considered in this study may offer better explanation on the cycle of such developments."
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AUTHOR: Aminah Md Yusof
TITLE: Modelling Office Market In Malaysia
KEYWORDS:
ABSTRACT: "The growing interest in modelling commercial property also increased steadily with more and more research on the issue undertaken by various parties in both countries. Research on property investment performance analysis, particularly in utilising finance and economics theories in forecasting commercial rental, have been widely undertaken in the United Kingdom, the United States of America and Europe. Most of the studies assumed that rental is a reduced-form equation of demand and supply. Thus rental can be forecasted by available information on factors related to demand and supply of that particular property. Nonetheless, in Malaysia, tendency to utilise the economic and finance theories is very minimal. Despite increasing involvement of major investors with considerable sum have been invested in property development and growing interest in property investment, research on it in Malaysia received less attention from either practitioners or academicians especially on the aspect of their pricing. Currently, prices and rents are assumed to adjust to market clearing. There is no attempt to model office rental as well as an exploration to its relationship with other economic variables or indicators. The reluctance of practitioners to adopt systematic approach to rental determination has been an evidence for the absence of neither model nor work in the related issue in the Malaysian market. This paper attempts to model office market in Malaysia at national and regional level. This research hence seeks to analyse the demand and supply forces for offices in the city of Kuala Lumpur and regional town, to develop model(s) for forecasting and explaining rental pattern in the market. Most works on office market in Malaysia concentrate on Kuala Lumpur’s market to portray the national market. Moreover, the Kuala Lumpur’s market, as an indicator of Malaysian market, has been adopted without further attempt to analyse the pattern or behaviour of regional sub-market. The regional town is a capital of every state, known as city or town, in Malaysia. Some cities are developed faster than another due to various internal and external factors. An uneven distribution of business activities between the capital city and regional town, thus contributed to the possibility of each sub-market will behave in its own way. This may led to the issue of whether the model of regional office market resembles the national’s model hence will Kuala Lumpur provide reliable model for Malaysian office market. It is, therefore, important to establish theoretical and empirical justification for the market. A model(s) will be developed and tested on the Kuala Lumpur and selected regional office market dataset."
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AUTHOR: Aminah Md Yusof
TITLE: Modelling Office Market In Malaysia
KEYWORDS:
ABSTRACT: "The growing interest in modelling commercial property also increased steadily with more and more research on the issue undertaken by various parties in both countries. Research on property investment performance analysis, particularly in utilising finance and economics theories in forecasting commercial rental, have been widely undertaken in the United Kingdom, the United States of America and Europe. Most of the studies assumed that rental is a reduced-form equation of demand and supply. Thus rental can be forecasted by available information on factors related to demand and supply of that particular property. Nonetheless, in Malaysia, tendency to utilise the economic and finance theories is very minimal. Despite increasing involvement of major investors with considerable sum have been invested in property development and growing interest in property investment, research on it in Malaysia received less attention from either practitioners or academicians especially on the aspect of their pricing. Currently, prices and rents are assumed to adjust to market clearing. There is no attempt to model office rental as well as an exploration to its relationship with other economic variables or indicators. The reluctance of practitioners to adopt systematic approach to rental determination has been an evidence for the absence of neither model nor work in the related issue in the Malaysian market. This paper attempts to model office market in Malaysia at national and regional level. This research hence seeks to analyse the demand and supply forces for offices in the city of Kuala Lumpur and regional town, to develop model(s) for forecasting and explaining rental pattern in the market. Most works on office market in Malaysia concentrate on Kuala Lumpur’s market to portray the national market. Moreover, the Kuala Lumpur’s market, as an indicator of Malaysian market, has been adopted without further attempt to analyse the pattern or behaviour of regional sub-market. The regional town is a capital of every state, known as city or town, in Malaysia. Some cities are developed faster than another due to various internal and external factors. An uneven distribution of business activities between the capital city and regional town, thus contributed to the possibility of each sub-market will behave in its own way. This may led to the issue of whether the model of regional office market resembles the national’s model hence will Kuala Lumpur provide reliable model for Malaysian office market. It is, therefore, important to establish theoretical and empirical justification for the market. A model(s) will be developed and tested on the Kuala Lumpur and selected regional office market dataset."
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AUTHOR: Zhang Li, Willie Tan And Yu Shi Ming
TITLE: The Effects Of Housing Reforms On Property Markets In Inland Cities Of China The Case Of Wuhan |Refereed|
KEYWORDS: "Housing Reform, Monetary Distribution, Emerging Markets"
ABSTRACT: "The allocation of public housing in urban China has been experiencing dramatic changes in recent years. Currently, it is at the transition from in-kind to monetary allocation. Compared with the developed coastal cities, housing reform and its impacts on the property market in inner cities have drawn less attention. Using Wuhan as a case study, the effects of the housing reforms on the property markets are analyzed to demonstrate the far-reaching impacts of the housing reforms. Qualitative interviews with 20 local officials in selected municipal or sub-municipal departments and ordinary residents were conducted, and documentary research using official materials, local newspapers and journals was carried out as a necessary supplementary method to case study and interview. The results indicated that housing reform measures have greatly encouraged the development of the property market of Wuhan. However, there are still uncertainties in the future development of the real estate markets as well as reform policies. This implies that property markets in inland cities may take a long time to develop towards maturity. The implications of these results provide useful information to both the policy makers in housing sector and the potential investors who are interested in China’s future development."
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AUTHOR: Zhang Li, Willie Tan And Yu Shi Ming
TITLE: The Effects Of Housing Reforms On Property Markets In Inland Cities Of China The Case Of Wuhan |Refereed|
KEYWORDS: "housing reform, monetary distribution, emerging markets"
ABSTRACT: "The allocation of public housing in urban China has been experiencing dramatic changes in recent years. Currently, it is at the transition from in-kind to monetary allocation. Compared with the developed coastal cities, housing reform and its impacts on the property market in inner cities have drawn less attention. Using Wuhan as a case study, the effects of the housing reforms on the property markets are analyzed to demonstrate the far-reaching impacts of the housing reforms. Qualitative interviews with 20 local officials in selected municipal or sub-municipal departments and ordinary residents were conducted, and documentary research using official materials, local newspapers and journals was carried out as a necessary supplementary method to case study and interview. The results indicated that housing reform measures have greatly encouraged the development of the property market of Wuhan. However, there are still uncertainties in the future development of the real estate markets as well as reform policies. This implies that property markets in inland cities may take a long time to develop towards maturity. The implications of these results provide useful information to both the policy makers in housing sector and the potential investors who are interested in China’s future development."
View the Full Paper