Proceedings from the PRRES Conference - 2008
The 14th Annual Conference of the Pacific Rim Real Estate Society 
 Kuala Lumpur, Malaysia January 20 – 23, 2008

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 headed by Professor Yu Shi Ming from the National University of Singapore.  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: Adewunmi Yewande And Olusegun Ogunba
TITLE: Facilities Management And The Estate Surveyor And Valuer: An Investigation Of Attitudes Of Nigerian Estate Surveyors' |Refereed|
KEYWORDS: "Facilities Management, Property Surveyors, Role"
ABSTRACT: "The introduction of facilities management as a distinct profession in Nigeria has posed problems for the traditional property management surveyor, especially with reference to his most appropriate role in the new discipline. The paper aimed at resolving the confusion through a critical examination of the attitudes and training of property surveyors. Most estate surveyors incorrectly believe they can handle all aspects of facilities management, but feel threatened in this all-encompassing role by other built environment professionals. The paper concludes that surveyors need to define their areas of best relative contribution to facilities management."
View the Full Paper

AUTHOR: Yasmin Mohd Adnan And Ainoriza Mohd Aini
TITLE: "Tenants’ Occupation And Satisfaction Of Selected Purpose Built Office Buildings In Central Business District (Cbd), Kuala Lumpur."
KEYWORDS: "Central Business District, Occupation, Purpose Built Office Buildings, Satisfaction level"
ABSTRACT: "This paper presents the findings of a study of tenants’ occupation at older purpose built office buildings at the Central Business District (CBD) of Kuala Lumpur. While older office buildings located in secondary location or on the fringe of CBD area are said to be more susceptible to being left vacant due to its unpopular office addresses and poor building images, similar buildings located close by Kuala Lumpur City Centre (KLCC) area gained from the strategic location and continued to enjoy sustainable occupancy rates mainly due to its competitive rentals rates. Though this is the case, the Central Business District (CBD) still poses to be a choice for location for certain category of business. Thus, a study was conducted to investigate and identify the profiles & nature of business of existing tenants of office buildings built before 1980 located in the Central Business District (CBD) Area. The study also aimed to identify the level of tenants’ satisfaction on the facilities and services provided at the buildings within the study area. The study revealed that the majority of tenants constitutes majority from legal, consultancy and construction sectors and they are satisfied with the facilities and services of the buildings."
View the Full Paper

AUTHOR: Yasmin Mohd Adnan And Aniza Abdul Aziz
TITLE: Incorporation Of Innovative Passive Architectural Features In Office Building Design Towards Achieving Operational Cost Saving–
KEYWORDS: "Green buildings, office buildings, passive architecture, sustainable development"
ABSTRACT: "Generally, office buildings developers/tenants/occupiers are not felt to be interested in the savings from increased energy efficiency. This factor is not a major factor of consideration considering the other factors that are preferred by them which include good location. However, sustainability can be related to cost savings by incorporating green building practices such as innovative passive architecture that will enhance the building image, the workplace infrastructure as well as occupants comfort. Thus, in order to promote sustainable buildings, this paper discusses how innovative building features through passive architecture may be incorporated in the building design to achieve operation cost saving buildings. A few local case studies will be highlighted in the move to promote sustainable development."
View the Full Paper

AUTHOR: Hera Antoniades
TITLE: Strata Living And The 10 Year Sinking Fund Plan
KEYWORDS: "sinking fund, strata schemes, strata title"
ABSTRACT: "In recent years, the Strata Schemes Management Act 1996 underwent two major reviews, in consultation with the public. The New South Wales Parliament consequently passed amendments in 2002 and again in 2004. The latter amendments in particular dealt with large schemes (100 lot plus), and the planning of the sinking fund. However, the government further identified a number of other unresolved issues and again had sought comment from the public on twenty-three named issues, in connection with strata schemes and related matters. This paper seeks to discuss and investigate the recent legislative reforms which deal only with the planning of the sinking fund in a strata scheme. The sinking fund primarily is used to cover expenses such as the painting of the building; driveway refurbishment; the replacement of fencing; common property items such as carpets, roof, and guttering; and the overhaul of the lift. The research included empirical data in the form of surveys gathered from strata owners, whether it is owner-occupiers, or absentee-owners of strata title properties. In conclusion, the research findings considered the effectiveness of the new 10 year sinking fund plan requirements. The survey results indicated that strata owners were of the opinion that there was a need for the new 10 year sinking fund plan to be mandatory for all strata schemes, regardless of the lot numbers in the scheme."
View the Full Paper

AUTHOR: Sven Bienert, Christoph Wagger, David Steixner
TITLE: Models To Evaluate The Quantitative Effects Of Climate Change On Real Estate Markets
KEYWORDS: "Climate Change, Real Estate, Market Value, Multiple-Regression, Welfare loss, Hedonic-Pricing"
ABSTRACT: "Purpose – This paper seeks to critically review the existing literature and models on climate change with regard to the effects on real estate markets and examines ways to quantify the impacts within the property industry. By focusing on selected parts of different real estate markets changes in value which are due to the change of climate are disclosed. Design/methodology/approach – The research is based on hedonic pricing models as well as the results of the general research on climate change in order to identify an improved method for the real estate industry which could serve as a basis for further research concerning the quantified impact of climate change. Findings – The authors identified that research activity concerning the impact of climate change on real estate markets has to be improved, since climate change has a very strong impact on property markets however until today this field of research has been just about untouched. Practical implications – The impact of climate change on real estate is very strong. Still practitioners do not react proactively since the effects have not been researched in detail. Especially very fragile regions seem to be very intensely affected. Originality/value – This Paper indicates one first step towards a new research field which deals with the quantifications of the impact of climate change on real estate markets. Therefore, the quantitative impacts of different scenarios are illustrated and possible methods of quantification are discussed in this paper."
View the Full Paper

AUTHOR: Henning Bjornlund, Sarah Wheeler And Martin Shanahan
TITLE: Supply And Demand Elasticity Of Irrigationion Water - Implications For Water Markets |Refereed|
KEYWORDS: "Water markets, elasticity, water demand, water supply, water prices"
ABSTRACT: "Water markets have become an integral part of water and property management in Australia over the last twenty years or so. Land and water rights have been separated with wide ranging consequences for many property professionals. A number of papers on PRRES conferences over the last five years have been dealing with the operations and implications of water markets and analysing water market prices and behaviour. This paper continues this line of research by looking at the elasticity of demand and supply for agricultural water. This information is essential to better understand price fluctuations and market behaviour and to make better informed decisions in water market both as a water user and as an investor. Bid prices for the demand and supply of water in the Goulburn-Murray Irrigation District of Victoria between 2001 and 2006 are analysed to estimate monthly price elasticities. Based on bid prices, the elasticity of demand for irrigation water appears high. The price elasticity varies over the season, with low elasticities in early season, increasing to maximum elasticity mid season and then becoming inelastic towards the close of the season. Elasticity also increases considerably in higher price ranges. The traded volumes and mean monthly prices actually paid for water allocations are then analysed to investigate the factors influencing water demand and to estimate price elasticities. Using actual prices paid, water demand appears positively related to price but volume trade is more influenced by demand the previous month, rainfall and evaporation, seasonal factors, rural commodity prices and farm GDP."
View the Full Paper

AUTHOR: Henning Bjornlund And Peter Rossini
TITLE: Are The Fundamentals Emerging For More Sophisticated Water Market Instruments |Refereed|
KEYWORDS: "Water markets, water prices, investment analysis"
ABSTRACT: "This paper explores whether the economic fundamentals are emerging to support more sophisticated water market instruments within the Goulburn-Murray Irrigation Districts. There are signs that institutional barriers are being removed and that water users might be changing their perception of the use of such instruments. However, for investors to enter the market and for derivative instruments to emerge markets need to reach a certain level of maturity. This would entail a high level of market activity, a large number of buyers and sellers in the market, a reasonable flow of market information and the existence of market intermediaries. There is evidence that water markets are increasingly liquid, that markets are being adopted by a considerable proportion of water users and that markets starts to have a significant impact on who has access to water resources both in the long and short term. Financial analysis shows that an investment in a water entitlement over a 5 year holding period involving the sale of the annual water allocations and subsequent sale of the entitlement, are in excess of returns from the Australian share market. Cycle analyses show that prices of entitlements and allocations follow the same cyclical pattern, but allocations fluctuate far more within and between seasons. The fundamentals therefore seem to have emerged to support more sophisticated market instruments and mechanisms to be used for the benefit of both investors and water users. "
View the Full Paper

AUTHOR: Sandy Bond
TITLE: The Impact Of Feng Shui On Condominium Prices
KEYWORDS: "Feng Shui, property values, paired sales analysis, multiple regression analysi"
ABSTRACT: "Purpose of this paper To determine if the ancient Chinese tradition of Feng Shui affects residential condominium prices in a Western setting. Methodology Two approaches were adopted to measure the impact of Feng Shui design principles on property prices. First, a case study approach using a paired sales analysis was adopted to compare sales transaction prices of Feng Shui designed condominiums with sales prices of condominiums that were built without this design feature. Second, sales transaction data were analysed using multiple regression analysis in a hedonic pricing framework. Findings The results were mixed but provide preliminary evidence that Feng Shui impacts positively on property prices in the West.Research limitations/implications Firstly, the units were sold as “designer ready”. Prices for these units exclude floor coverings, painting, kitchen and bathroom fittings, appliances, counter tops and plumbing fixtures. The cost of build out is $87,000, on average, for a 3003 square foot unit. However, this cost varies between units depending on the quality of the build out that the purchaser selects. Prices that purchasers have paid to complete the build-out are between $26 and $35 per square foot, and an average of $29 per square foot was adopted to adjust the selling prices by to allow for comparison with selling prices of build-out units in other buildings. A more precise adjustment was not able to be made as the actual build-out cost for each unit was not available. However, it was felt that the average rate was a reasonable proxy for the cost of a build-out. Secondly, the case study includes sales of Feng Shui designed units in only one building. A more reliable result would have been achieved had the data set included several buildings constructed using the principles of Feng Shui. However, in the geographical location chosen for the case study additional data was not available. Further, as Feng Shui is not a property characteristic that is commonly recorded in property transaction databases sourcing this information is problematic. Practical implications With the rise in popularity of the use of Feng Shui design in Western homes, understanding the effects of this on property values is important to both property valuers and investors of such property. Value of the paper Research on the impact of cultural beliefs on residential property values in the West is limited. This paper provides a contribution to understanding the value affects of such beliefs, specifically those relating to Feng Shui. "
View the Full Paper

AUTHOR: Nelson Chan
TITLE: How Australia Deals With Land Acquisition Compensation For Land Subject To A Leasehold Title |Refereed|
KEYWORDS: "Freehold, leasehold, land acquisition, compensation"
ABSTRACT: "In Australia, the majority of private urban land is under freehold title. However, all land in Australian Capital City (ACT) and a small portion of urban land in various States and Territory are under leasehold title. In addition, large tracts of rural land throughout Australia are held under Crown leases. The government at Commonwealth, State and Territory level has passed separate land acquisition laws to deal with compensation issues. While the compensation principle for assessing the value of freehold land is relatively straightforward and consistent throughout the country, the compensation principle for assessing the value of leasehold land is different in different states and territories. This paper aims at studying the different legal provisions for compensating the value of leasehold land in the country. It also looks at whether leasehold landowners are treated fairly. It is found that although there are different provisions in the various state and territory land acquisition compensation statutes, the spirit of compensation is on the whole the same throughout the country. Leasehold landowners are basically treated fairly when their land is acquired by the authority."
View the Full Paper

AUTHOR: Chau Kwong Wing And A S W Chan
TITLE: The Determinants Of Industrial Property Prices During Period Of Economic Restructuring - The Case Of Hong Kong |Refereed|
KEYWORDS: "Economic structuring, industrial property, land use policy."
ABSTRACT: "This study investigates the major determinants of industrial property prices in Hong Kong during the period of rapid economic restructuring resulting from China’s open door economic policy since the late 70’s. The empirical results suggest that besides the usual demand and supply side factors in the manufacturing sector, industrial property prices are also affected by the volumes of re-exports. This is a result of relocation of Hong Kong’s industrial base to the Mainland. During the period of relocation of production base, the use of industrial buildings in Hong Kong gradually changed from production to other supporting uses, such as administration, research and development,storage, and marketing. However, there were regulatory restrictions on the industrial space for nonproduction purposes despite the declining demand for space for production uses. The government’s industrial land policy has also been adjusted many times during the process of economic structuring in Hong Kong. Our study suggests that the of all the policy changes, the changes in 1997 and 2001 that provided more flexibility for use of industrial space had the strongest positive impact on industrial property prices. These policies injected a valuable real option into the industrial buildings and removed much uncertainty in investing in industrial buildings. "
View the Full Paper

AUTHOR: Chee Seng Cheong, Ralf Zurbruegg And Patrick J Wilson
TITLE: The Long-Run Performance And Driving Forces Of Securitised Listed Property |Refereed|
KEYWORDS: "Australia, United Kingdom, Interest rate, Listed Property Trusts, Real Estate Management & Development, Securitised property, Stock market, Real Estate Investment Trusts"
ABSTRACT: "In a comparison between Australian and United Kingdom property markets this article re-examines the long run performance of securitised property and its relationship with the equity and fixed income markets. The results show that Australian Listed Property Trusts perform very well in both high and low interest rate environments and total investment returns have remained relatively stable over the last decade. The study also indicates that the United Kingdom Real Estate Management & Development companies seem to perform better than their Australian counterparts. Cointegration test results provide a different perspective on the relationship securitised property has with the bond and equity markets, and sheds new light on their long-run interaction. For instance the outcomes suggest that, if structural breaks are taken into consideration, then it appears securitised Real Estate Management & Development properties are driven by both interest rate and stock market changes. Somewhat surprisingly the fixed income market is not a long-run driving force of Australian Property Trusts, even though they utilised more long-term debt to finance their business operations."
View the Full Paper

AUTHOR: Fong-Yao Chen And Shi-Ming Yu
TITLE: Client Influence On Valuation: Does Language Matter? A Comparative Analysis Between Taiwan And Singapore
KEYWORDS: "Valuation, client influence, comparative analysis, Taiwan and Singapore."
ABSTRACT: "The subjectivity and discrepancy in real estate valuation creates negotiation opportunities between valuers and clients, which in turn will influence the final reported value. While there has been past research on this subject, this has focused on western developed economies with English as the primary means of communication. This paper analyses the influence similar factors such as economic competitiveness, information transparency and purchasing power have on valuers’ behavior in Taiwan and Singapore. Apart from the fact that both are developed economies, the medium of communication and other economic and environment factors are considerably different. This paper uses survey questionnaire and interviews to analyse client influence on valuation. It also aims to test the variance of such influence that could be attributable to the systemic differences in Taiwan and Singapore. The results show that these differences do have a significant impact on how valuers view the causes of client influence."
View the Full Paper

AUTHOR: Chia Fah Choy
TITLE: Productive Efficiency Of Malaysian Construction Sector
KEYWORDS: "Productivity, productive efficiency, construction sector."
ABSTRACT: "The productivity level is viewed as a basic index of gauging the health of an individual enterprise, an industry, or an economy. It forms the basis for improvements in real incomes and welfare. A sound productive measurement is crucial for a productive unit to manage its performance effectively. A number of indicators have been developed to measure the productivity level. These indicators usually measure some or all of the inputs and outputs of the industry; many of them are inaccurate, reward the wrong behaviour, lack predictive power; do not captures key changes until it is too late. Hence, they failed to be a satisfactory measure of performance efficiency. The technique of measuring productive efficiency originated by Farrell takes account of all inputs to evaluate the productive efficiency of a productive unit in relation to the most efficient frontier. The Farrell method is used to analyse the performance of Malaysian construction sector in attempt to explain the performance of the sub-sectors. The application of this study is it provides an alternative means to assess the competitiveness of a firm."
View the Full Paper

AUTHOR: Cassidy I-Chih Lan
TITLE: "(Mandarin Paper) Urban Competitiveness, Urban Regeneration, And Mega-Project: A Perspective Of Urban-Regional Governance In Greater Taipei"
KEYWORDS: ??????urban competitiveness??????????urban redevelopment and regeneration???????mega-project?????????urban-regional governance?
ABSTRACT: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
View the Full Paper

AUTHOR: Bwembya Chikolwa
TITLE: Determinants Of Listed Property Trust Bond Ratings: Australian Evidence
KEYWORDS: Listed property trusts; bond rating; ordinal regression; artificial neural networks
ABSTRACT: "Using artificial neural networks (ANN) and ordinal regression (OR) as alternative methods to predict LPT bond ratings, we examine the role that various financial and industry variables have on Listed Property Trust (LPT) bond ratings issued by Standard and Poor’s from 1999-2006. Our study shows that both OR and ANN provide robust alternatives to rating LPT bonds and that there are no significant differences in results between the two full models. OR results show that of the financial variables used in our models, debt coverage and financial leverage ratios have the most profound effect on LPT bond ratings. Further, ANN results show that 73.0% of LPT bond rating is attributable to financial variables and 23.0% to industry-based variables with office LPT sector accounting for 2.6%, retail LPT 10.9% and stapled management structure 13.5%."
View the Full Paper

AUTHOR: Lawrence Chin Kein Hoong
TITLE: Facility Management In Singapore:Training And Education
KEYWORDS: "Education, facility managers, job fit, behavioural traits"
ABSTRACT: "Facility management is one of the fastest growing areas of specialization within the real estate industry that is gradually evolving into a managerial science. With increasing urbanisation and rising expectations of users, facility managers of today need to have at their fingertips the knowledge, communication skills and technical expertise in order to be effective managers. They must also be versatile as they may be called on to act in a variety of situations. Interpersonal skills are becoming a prerequisite if they are expected to deal effectively with building owners, tenants, employees and others in the real estate business. The facility manager is expected to understand the socio-economic forces at work given the rapid technological changes and increasing globalisation of the real estate market. He or she must be able to evaluate the property in terms of operating income, forecast its potential for the future, and construct a management plan that reflects the owner’s objectives while remaining flexible enough to adapt to future changes. This paper examines the professional training and education of facility managers in Singapore. This study using empirical research seeks to better understand certain behavioural traits that might lead a facility manager to the success of job effectiveness and performance."
View the Full Paper

AUTHOR: Greg Costello And Greg Schwann
TITLE: Liquidity In Housing Markets - Market Momentum And Market Reversion
ABSTRACT: "This paper examines how the price discovery process responds to periodic variations in liquidity (sales volumes) and information provided from past prices within own sub-markets and the aggregate market. In our empirical study, we analyze relationships between geographically defined housing sub-markets and a large aggregate housing market (Perth, Australia). The study is designed to test for general market momentum or reversion patterns in prices. We select a specific set of sub-markets that are not spatially contiguous. For each sub-market and the aggregate market we calculate weekly time-series for sales prices and volumes and individual capital returns series. Finally, we fit a panel VAR model that relates the capital returns and sales in each suburb with lagged values of the same and correction terms for differences between sub-markets and the aggregate market. The results confirm significant variations in temporal patterns of influence for liquidity and past price information both within specific sub-markets and according to varying lag structures."
View the Full Paper

AUTHOR: William Dimovski
TITLE: Lpt Ipo Dividend Forecasts.
ABSTRACT: "While dividend forecasts in the prospectuses of initial public offerings (IPOs) are common, Brown et al. (2000) have found them to be optimistically biased. This study investigates the dividend/distribution forecasts in the prospectuses of Australian LPT IPOs during the period 1994 to 2004 and finds on average that they are not optimistically biased. Because dividends have important cash flow implications for investors, this study also examines factors that might influence the magnitude of the errors between the forecast and the actual distributions. It finds that LPT IPOs that offer stapled securities have overestimated their distribution paying ability."
View the Full Paper

AUTHOR: Christ Eves
TITLE: The Impact Of Property Title Type On Residential Property Returns
ABSTRACT: "Residential property in New Zealand comprises both freestanding residential properties and medium to high density residential properties. Medium to high density residential property comprises the typical units, townhouses and semi-detached houses common in most residential property markets. However, in many of the larger cities of New Zealand the free standing residential property market has evolved into two separate markets being freehold residential property and cross lease residential property. Cross leases have developed as a form of infill housing to reduce the urban sprawl in major canters, while reducing the time and cost for residential property developers. A cross lease is created when an existing freestanding residential property subdivides a portion of the existing land for the erection of another house on the original title, basically dividing one larger residential section into two smaller residential blocks. This paper will analyse house prices in Christchurch over the period 1992 to 2006 to determine if the various housing markets have shown similar capital returns or if there is a specific preference for a particular residential property title."
View the Full Paper

AUTHOR: Farag Hussan Gaith, Abdulkhalim Abdulrashed And Amiruddin Ismail
TITLE: An Empirical Investigation For Exploring It Factors And Firm Performance In Malaysian Construction Sector |Refereed|
KEYWORDS: "IT investment, construction firm performance, human resources."
ABSTRACT: "This paper examines the role that investment in information technologies (IT) play in the performance of construction companies in Malaysia. IT investment by construction firms increases annually, but many of them do not have the tools with which to evaluate the returns from their investment. To achieve this, a survey was carried out on 68 firms, using the revealed preference (RP) technique. From the data obtained, correlations were done using Pearson’s 2-tailed test for attitudes and perceptions. Four relationships were investigated - company performance vs. IT use, company performance vs. human resources, company performance vs. technical resources, company performance vs. business resources. It was found that IT investment had a positive impact on the firm performance and that the effect of the investment depended on the area of the investment."
View the Full Paper

AUTHOR: Dominique Fischer
TITLE: Evolution With A Teleology: The Genetic Programming Heuristic Approach To Modeling |Refereed|
KEYWORDS: "Genetic programming, heuristic models, metaphors."
ABSTRACT: This paper illustrates the power of Genetic programming (GP) with a variety of simple examples. The general approach is described and the results are compared to regressions and Artificial Neural Network results. The superiority of GP results appears to be quite convincing. Less convincing could be the nature of the Darwinian metaphor that underpin the whole concept.
View the Full Paper

AUTHOR: Dominique Fischer And Peddy Pi-Ying Lai
TITLE: Land Price Modeling With Genetic Algorithms And Artificial Neural Network Procedures |Refereed|
KEYWORDS: "Artificial neural networks, genetic programming, land prices, Taiwan."
ABSTRACT: "Genetic programming (GP) is a heuristic procedure that can favourably be compared to parametric treatments or distribution free Artificial neural network treatments. This article provides a brief description of the genetic programming algorithm used here to predict land prices in the city of Kaoshiung (Taiwan). The GP results are then compared to results obtained, from the same data set, from two different ANN models and with a standard multiple regression models. Genetic programming’s results are comparable in precision to the ANN results. However both ANN models perform much faster and one of them (labeled ANN2) provides much more explicit information. This article is simply an exploration in the applicability of GP to problems that do not respond well to the requirements of parametric statistical models."
View the Full Paper

AUTHOR: Dominique Fischer, Mani Usilappan And Nassir Bin Daud
TITLE: Risk Adjusted Performance: From Dust To Paper
KEYWORDS: "Malaysian REIT, Modigliani-Modigliani, non parametric tests, Performance measure adjustments, Willcoxon test."
ABSTRACT: "The relative performance of Malaysian REITs and Property Developers are compared with non parametric tests and then re-compared with risk adjusted returns a la Modigliani Modigliani. The period covered is 2006-2007 from share and unit prices from the Kuala Lumpur Stock Market. The results may not fully satisfy our financial rectitude but, at least, they may satisfy our yearning for economic morality: apparently ‘Turning dust into paper pays more than simply turning brick into paper’."
View the Full Paper

AUTHOR: Dominique Fischer
TITLE: Multiple Criteria Decisions: Opening The Black Box
KEYWORDS: "Multiple criteria decision, Analytical Hierarchy Process (AHP), Determinants, Teaching and learning tools, Office location, Kuala Lumpur"
ABSTRACT: "Multiple criteria decision tools are now widely used thanks to the availability of good commercial software packages. However, from a pedagogical point of view, such instruments are complete black boxes that would require a level of mathematics far beyond the reach of most users. This paper, of a strictly pedagogical nature, suggests that MCD can be taught and tested simply by using our good old Excel spreadsheets. The paper also suggests an innovative and Excel based method to measure the coherence of multiple criteria matrices."
View the Full Paper

AUTHOR: Berry Fong-Chung Hsu, Douglas Arner And Qun Wan
TITLE: Financial Reform In China:The Problematic Aspects Of Protecting Creditor Right
ABSTRACT: "Since 1979, China has been involved in an on-going process of economic reform with the goal of transforming from a centrally planned economy to a socialist market economy. As one aspect of this process of transition, China has to address issues of financial-sector and state-owned enterprise reform. With its accession to the World Trade Organization in 2003 and its related commitments to foreign competition and financial sector reform the process of transition has taken on new urgency. In its process of enterprise and financial reform, China has used a policy of gradualism and legislative forbearance, i.e. a certain ambiguity and flexibility in legislating and interpreting policy through law. This paper discusses how this policy is application in addressing the non-performing loan (NPL) problems, a substantial component is related to property rights. In addressing the NPL problems, four asset management companies were created. They are state-owned, non-banking financial institutions with power to manage enterprises. In disposing the vast volume of financial assets (a substantial of which are real estate related), the property right issues under Chinese law have to be addressed. These include the validity of transfer of property (e.g. loans sold by the mortgagees), creditor rights (e.g. problems of transferred mortgages), corporate law concerns (e.g. issues related to creditor rights, equity rights, and real estate), and foreign participation (e.g. foreign ownership of real estate)."
View the Full Paper

AUTHOR: Michael K. Fung And Arnold C. S. Cheng
TITLE: The Wealth Effects Of Housing And Stock Markets On Consumption: Evidence From A Sample Of Developed And Developing Countries |Refereed|
KEYWORDS: Housing market; stock market; wealth effect; consumption
ABSTRACT: "Households usually hold a portfolio of assets, both liquid and illiquid. Housing assets play a special role in the class of illiquid assets because housing assets have spending consequence which differs from financial assets. Since housing services enter households’ utility function, an increase in housing price not only increases the wealth of the owners, but also increases the cost of consuming housing services. With reference to a sample of developed and developing countries, the objective of this study is to compare the wealth effects of financial and housing market on consumption. Housing has the dual functions as both a commodity yielding a flow of housing services and an investment asset yielding a flow of capital income. With an empirical framework based on the Permanent Income Hypothesis, the findings from this study suggest that a rise in housing price has both a positive wealth effect and a negative price effect on consumption. While the positive wealth effect is caused by an increase in capital income, the negative price effect is caused by an increase in the cost of housing services. These findings imply that the government policy of land supply aiming to stimulate the economy should strike a balance between the possible wealth and price effects of the housing market. In addition, the level of financial market development has a negative impact on the housing market wealth effect. A plausible explanation is that a more liquid stock market will make real estate a less attractive instrument for capital investment. In addition, the sensitivity of consumption to unanticipated changes in housing price is negatively related to the number of procedures required to register a property. This finding is not surprising because the number of such procedures affects the liquidity of the housing market."
View the Full Paper

AUTHOR: Bob Hargreaves
TITLE: A Plan To Ease Rents And House Prices
ABSTRACT: "The plan put forward in this paper aims to moderate rents and house prices in New Zealand by increasing the supply of affordable housing at no cost to the taxpayer. Housing supply could be increased the selling 10 percent of the government rental housing stock each year and replacing it with the same number of new units. To minimise land costs the replacement units would be medium density housing sited on land already owned by the government. Consequential flow on cost savings in rental subsidies are also possible if the government rental housing portfolio is rationalised to provide a better fit between tenant needs and housing types. Similarly, moderating house price increases is likely to save the taxpayer money spent on existing demand based subsidies aimed at encouraging home ownership."
View the Full Paper

AUTHOR: Barry P. Haynes
TITLE: Office Environments That Enable Human Contribution
View the Full Paper

AUTHOR: Barry P. Haynes
TITLE: Office Productivity: A Self Assessed Approach To Office Evaluation |Refereed|
KEYWORDS: "Office evaluation, office layout, office productivity, workplace"
ABSTRACT: "The aim of this paper is to provide a validated theoretical framework for the measurement of office productivity. The study’s strength is that it is based on two sizable data sets. The data collected consists of data about the physical characteristics of the office environment and data pertaining to the behavioural environment. One of the key contributions of this study was the development of the components of office productivity, which were: comfort, office layout, informal interaction points, environmental services, designated areas, interaction and distraction. The components were reduced to four in preparation for subsequent analysis. The four distinct components were comfort, office layout, interaction and distraction. This study establishes that it is the behavioural environment that has the greatest impact on office productivity. It demonstrates that it is the dynamic elements of the office environment, interaction and distraction that are perceived as having the greatest positive and negative influences on self assessed productivity."
View the Full Paper

AUTHOR: David M. Higgins
TITLE: Commingled Four Quadrant Property Funds: Creating An Investment Framework |Refereed|
KEYWORDS: "Commercial property, portfolio analysis, property investment allocation"
ABSTRACT: "In broad terms, the structure of all property investment products can fit into four property investment quadrants – private equity, public equity, private debt and public debt. Within an investment framework, this research examines the portfolio allocation across the four quadrants. The portfolio weights are based on recognised investment styles (strategic – fixed and flexible weighting and tactical asset allocation). The styles are applied to conservative, balanced and growth funds derived from different levels of risk along a Markowitz constrained mean–variance efficient frontier model. The results showed that higher total returns can be achieved by the funds with flexible weighting and tactical asset allocation strategies, although this was accompanied by increased volatility which lowered the key risk adjusted return readings. This was primarily due to an increased allocation to private equity and the introduction of public equity to the portfolios. As portfolio allocation based on the four quadrant approach is still relatively new and evolving, there is a requirement for ongoing research, particularly with sourcing actual property debt performance data. In the future, commingled four quadrant property funds will offer institutional investors the opportunity to better manage and successfully execute property investment strategies."
View the Full Paper

AUTHOR: Angelo Karantonis
TITLE: Population Growth And Housing Affordability In The Modern City- Sydney A Case Study |Refereed|
KEYWORDS: "Housing affordability, housing demand, housing supply, land costs, population growth, cities"
ABSTRACT: "Urban populations are forecast to increase in coming decades. Population growth is a major underlying factor for the demand of housing and without a new supply of dwellings, it pushes up the prices for both renting and purchasing dwellings. The resultant fall in affordability is a problem that is further compounded in many large cities by the change in living preferences that has resulted in a fall in household occupancy rates, particularly in the western world. Affordability is further eroded in many of the urban cities from the supply side of the equation, as new supply is needed to house the growth of population, which results in urban sprawl, which in turn is putting pressure to upgrade and extend existing infrastructure or provide new infrastructure. As the new supply is often in outlying areas of the city, the requirement for new infrastructure is more the norm and together with new environmental compliance costs and elevated quality expectations, it impacts on the cost of new supply.In order to analyse the likely trends in housing affordability, Sydney is explored as a case study. It is expected to grow significantly and housing this growth is putting pressure on both urban redevelopment and fringe settlement. Both of these bring specific challenges that shed light on the question of long term trends in affordability. This paper will analyse several policy directions that could be considered in order to address these adverse trends in housing affordability."
View the Full Paper

AUTHOR: Paul Kershaw And Peter Rossini
TITLE: A Simplified Geographical Information System (Gis) For The Valuation Profession
KEYWORDS: "Geographic Information Systems, GIS, Valuation, Appraisal, Mapping, Automated Valuation Models"
ABSTRACT: "Geographical Information Systems have been available in various forms for several decades but their use by the appraisal/valuation profession has tended to be concentrated in the field of mass appraisal and utilised almost exclusively by government instrumentalities. Such implementations have tended to be costly in terms of capital equipment, software licenses, database construction and licensing and staff training. The use of such systems for general valuation work has at best been spasmodic. Recent innovations in the availability of internet resources for both mapping and database access and management have opened opportunities for the deployment of low cost, easily maintained and operational effective systems. This paper describes and illustrates such a Simplified Geographical Information System (SGIS) for potential use by the valuation profession for both the auditing of Mass Appraisals and Automated Valuation Models (AVMs)"
View the Full Paper

AUTHOR: Philip Kimmet
TITLE: Redefining Sustainable Real Estate Investment
ABSTRACT: "The importance of the social aspects of real estate investment is very much understated. The notion tends to be interpreted along economic lines. Measuring and reporting the social sustainability of real estate has the potential to not only influence investment patterns, it also impacts on what a real estate is ultimately worth. More importantly, it can help change community perceptions about what we value most about modern society. Sustainability is increasingly being viewed as a non-negotiable added extra that comes at a price, although it can offer financial rewards, particularly over the longer term. These rewards are measured in micro (energy efficiency, recycling etc.) and macro terms (greenhouse gas reducing, less resource depleting etc.), and are nearly always environmentally-based. The social aspects of sustainabilty (productivity, well-being etc.) must also be seriously considered. However, financial rewards from investment in this area are less understood. As a result, the measuring, valuing and reporting of social sustainability is significantly less developed. Demonstrating that social sustainability is identifiable, desirable and value adding is essential if it is going to really matter to real estate profiles any time soon."
View the Full Paper

AUTHOR: Valerie Kupke
TITLE: Factors Important In The Decision To Buy A First Home |Refereed|
KEYWORDS: "Home purchase, housing career"
ABSTRACT: The purchase of a first home is seen as a very important stage in the housing career of an individual or household and has received considerable attention in the literature. Explanations of the switch in tenure have traditionally been explained using the family life cycle or the life course models. More recently the importance of housing market factors has been recognized. This study reports on a survey conducted in Australia in March 2000 in which first home buyers were asked which factors were most important in the timing of their decision to purchase. Attention was paid to the sampling process in order to ensure a representative sample. The results show that housing market conditions are critical in understanding the timing of the decision to purchase a first home.
View the Full Paper

AUTHOR: Valerie Kupke
TITLE: Measuring Urban Renewal Outcomes |Refereed|
KEYWORDS: "Urban renewal, key performance indicators"
ABSTRACT: "Housing SA (formerly the South Australian Housing Trust) provided thousands of people in South Australia with housing especially during the peak periods of the state’s growth in the 1950s and 1960s. However in the 1990s Housing SA was faced with a large volume of older housing in large concentrations, a mismatch of housing types to suit market demand and a lack of housing variety. As a means of addressing these issues Housing SA embarked on a program of urban renewal. Urban renewal seeks to improve the 'liveability' of an area by reducing concentrations of public housing, increasing the range of housing types and creating home purchase opportunities. It also seeks to create sustainable communities, provide a better environment and improved standards of housing. One way of assessing the success of such ventures is to use a number of key performance indicators which attempt to measure change in the physical, economic and social environments using data such as that provided by the ABS. While such indicators do not give the whole picture in terms of change they are at least a starting point for comparing the before and after scenarios. This paper reports on and critiques the outcomes of urban renewal using quantitative measures such as capital appreciation, housing affordability, employment measures and levels of home ownership for five SA urban renewal projects each of which has been completed or is near completion. The paper includes analysis based on the recently released 2006 ABS Census of Population and Housing."
View the Full Paper

TITLE: An Investigation Of The Effects Of Single-Family Rental Properties On Housing Values Within Single-Family Neighborhoods In A University Town |Refereed|
KEYWORDS: "Single-family house, tenure, university town."
ABSTRACT: "Many research studies have explored the influence of different urban variables on single-family neighborhood quality and real estate values in the United States. Researchers have considered the effects of corner lots, zoning regulations, schools, mobile/manufactured homes, office buildings, and neighborhood qualities (e.g. quietness, view, and noise) among other variables. However, none has explored the influence of renter-occupied properties on an individual unit basis on single-family home values within single-family neighborhoods in a university town. This research accordingly focuses on the impact of renter occupation on the value of a single-family unit and on surrounding units. This study concludes that in the context of single-family neighborhoods within a university town, a renter-occupied housing unit suffers a significant loss in value when it changes tenure from owner-occupied to renter occupied and it significantly affects the values of surrounding owner-occupied units. This study from an urban management and sustainability standpoint has immediate and long-term implications for single-family neighborhoods with encroachment of renter-occupied properties, and perhaps more so for neighborhoods in university towns. Implications may include impact of property tax valuation, neighborhood quality, quality of life, personal investment of homeowners, financial institutions' debt service and politics between residents and town elected officials. Keywords: single-family house, tenure, university town. ______________________________________________________________________"
View the Full Paper

AUTHOR: Peddy Pi-Ying Lai
TITLE: The Study Of Evaluation Of The Digital House Price In Taiwan
KEYWORDS: "Evaluation, Digital house, Housing Price factors, Analytic Hierarchy Process (AHP)"
ABSTRACT: "The electronic technology has been brought to the family houses and makes a profound influence in the building design. Communications within or beyond the house and collecting information from outside have become part of everyday living in the modern family. More construction has built the digital house in their resident project. This research is aimed to study the facilities of digital house and to understand the determinants of digital house price in Taiwan. Therefore, we use the multi-criteria decision making--AHP (analytic hierarchy process) method to analyze the effecting factors of digital house in Taiwan. We use 16 criteria to measure the determinants of price of digital house in Taiwan. We investigate developers, appraisers and real estate brokers. Through our research, we found that the security of digital system is the most important factor. The information technology which integrates the computers, information and electronic technology has been brought to the residential house. The digital houses not only make a profound influence in the real estate industry but also in the real estate appraisal."
View the Full Paper

AUTHOR: Lee Chyi Lin, Richard Reed And Jon Robinson
TITLE: Behaviour Of Property Investors - An Investigation On The Risk Perceptions Of Australian Property Funds Managers |Refereed|
KEYWORDS: "Australian property funds, downside risk, investors’ behaviours, property investors and risk perceptions."
ABSTRACT: "Recent finance and real estate empirical and analytical studies have demonstrated that downside risk appears as an intuitively appealing risk measure in which it is more consistent with investors’ behaviours. Conversely, qualitative studies into the behaviours of investors, particularly real estate investors, have been relatively limited. This study seeks to address this shortfall and aims to examine the behaviours of property fund managers towards downside risk. A survey was conducted in order to investigate the risk perceptions of property fund managers and determine whether they only require compensation for bearing with higher downside risk. The acceptance level of downside risk in the property funds idustry in Australia is also examined. The findings reveal that downside risk is more consistent with how investors individually perceive risk. However, here is also a gap between theoretical assertions and practice in which downside risk is not commonly used in the practice. The results give an insight into the knowledge base of property investors towards downside risk."
View the Full Paper

AUTHOR: Ming-Long Lee
TITLE: Non-Diversifiable Risk And Quantity Discounts In Urban Land Markets
KEYWORDS: Non-diversifiable risk; Land price; Parcel size; Spatial statistics; Taiwan
ABSTRACT: "Many studies investigate the relationship between land price and parcel size in urban markets. Majority of them claim their evidence supporting the transaction cost explanation postulated by Colwell and Sirmans (1978, 1980, and 1993). However land assembly and subdivision costs are negligible at the residential land markets in the land re-adjustment districts, Taichung City, Taiwan. Our empirical investigation finds significant quantity discounts prevailing among land sales at these markets. Moreover the discounts are larger for land sales zoned in R-2 districts than those zoned in R-1 districts. These results are consistent with Brownstone and De Vany’s (1991) non-diversifiable risk explanation."
View the Full Paper

AUTHOR: Lim Yoke Mui, Lee Lik Meng, Nor'Aini Yusof And Tan Sook Fern
TITLE: Georgetown As A Heritage City : The Voice Of The Residents
KEYWORDS: "Heritage, Perspective, Preference, Residents, George Town"
ABSTRACT: "Efforts to conserve George Town’s urban heritage began in the early 1970s. The State Government of Penang has submitted a joint application with Melaka to be listed on the UNESCO World Heritage City List in 2005. UNESCO has deferred a final decision on the listing until recently, it was announced that at the end of August 2007, a third evaluation will be conducted by a UNESCO expert to determine if the application will be successful. The Government has spent much money and effort in trying to preserve and conserve the inner city of Georgetown. However, does this effort concur with the aspiration of the residents? Have the residents been consulted and their preference seek before the decision is made to conserve the city? Efforts by the Government alone are not sufficient to ensure successful implementation of any planning policies. It needs the co-operation and participation of the business and residential community. As such, it is important to find out what are the preferences of the people that are living in the very area to be conserved. The knowledge of this preference will enable the policy makers to determine the direction to be headed and the best course of action to achieve that. To the best of our knowledge, no such survey has been conducted. In light of this and as part of a research on conservation in Georgetown under the research grant from NAPREC, a survey was conducted to discover the preference and perspective of the residents in Georgetown pertaining to conservation of Georgetown as a heritage city. A sample size of 400 residents living in the inner city was interviewed and a response rate of 67% was achieved. This paper will discuss the findings from the survey and proposes the directions to be considered for the future of Georgetown. "
View the Full Paper

AUTHOR: Vince Mangioni
TITLE: Just Terms Compensation And The Compulsory Acquisition Of Land |Refereed|
KEYWORDS: "Before and after, piecemeal, just terms compensation, joint statements and expert evidence."
ABSTRACT: Just Terms Compensation in Australia is predicated on the principles of placing the dispossessed party in the same or similar position prior to the acquisition of their land. This compensation is based on various statutes and rulings by the courts which have evolved over several decades and have guided the assessment of value and quantum of compensation in the acquisition process. This paper examines the principles that govern the assessment of value and compensation and identifies gaps in the parity of compensation that impact on some parties in the compulsory acquisition process. Compensation quantum and principles that impact on value and the way value is determined have been examined and the methods used are discussed. A survey of dispossessed property owners in New South Wales has been reviewed in measuring the success of the legislation and process in that State. The paper concludes with an analysis of court directives which contribute to the resolution of points of difference in the assessment of value which. These directives are designed to assist the court in expediting compulsory acquisition matters that come before it.
View the Full Paper

AUTHOR: Vince Mangioni
TITLE: The Property Profession And Evolving Financial Service Reforms In Australia - An Industry Perspective |Refereed|
KEYWORDS: "Financial service reform, investment advice, selling advice, valuations"
ABSTRACT: The demand on property professionals and the services they provide in Australia has continued to increase over the past 15 years. This evolution has resulted in the tightening of existing regulatory regimes and the introduction of new regimes to address the expansion in the provision of property investment advice. This paper identifies the evolution of services and advice provided by the various property and investment advising professions in Australia and monitors the regulatory regimes governing these professions. A survey has been used to define the perspectives of the professions involved and the perceptions of their respective regimes. A review of the expanding role of property professionals in the provision of property investment advice and the requisite changes needed in order for these professions to adapt is provided in conclusion.
View the Full Paper

AUTHOR: David Martin Juanil And Muhammad Najib Razali
TITLE: Real Estate Global Competition: The Importance Of Governance From Real Estate Prespectives In Malaysia
KEYWORDS: "Governance, Malaysia"
ABSTRACT: "In recent years, the matter of governance has emerged in all service sectors. Governance is a decision making process where implementation of the decisions are made. Globally, the world of real estate business has become very competitive. It is believed that governance will play a major role as a driving force, besides other factors. This paper will assess the way governance takes place in Kuala Lumpur as a capital city and business hub in Malaysia. It will examine using models developed by Jones Lang LaSalle from their survey on governance among major cities in the world in 2004. The models are city management and city marketing with some modifications to suit local contents. This paper will assist the government to understand the contributions of governance from real estate perspectives. Hence, it will improve Malaysia’s ranking in the world global competition and attract property investments from abroad."
View the Full Paper

AUTHOR: John Mcdonagh
TITLE: The Development Of Corporate Real Estate Asset Management In New Zealand |Refereed|
KEYWORDS: "Asset, corporate, development, real estate, management, New Zealand, performance, property, survey, time series."
ABSTRACT: "The first substantial research into the practice of Corporate Real Estate Asset Management (CREAM) in New Zealand was carried out by Wei Kium Teoh in 1992. Subsequently the author has published a number of papers in this area and a variety of post graduate students at Lincoln University have also undertaken research into CREAM via their dissertations. Several of these research projects involved surveys of large organizations in New Zealand and included similar questions. They were also spread in time over a period of 14 years. This led to the opportunity to carry out a time series analysis of the development of CREAM practice in New Zealand, the results of which are described in this paper. Findings include substantial and continuous improvement in some aspects of CREAM practice, such as the qualifications of those responsible for the management of corporate real estate and the development of strategic plans for these assets. However other findings have remained remarkably stable or plateaued, for example the percentage of organizations with a separate real estate unit, reporting levels to management and the allocation of real estate costs."
View the Full Paper

AUTHOR: Georgia Myers, Richard Reed And Jon Robinson
TITLE: Investor Perception Of The Business Case For Sustainable Office Buildings: Evidence From New Zealand
KEYWORDS: "Sustainability, office buildings, market value, perception."
ABSTRACT: "Over recent years the global market for sustainable commercial property has been growing in importance, with rapid growth occurring overseas that has led to substantial changes in the property markets. The New Zealand property industry has been recently introduced to the concept of sustainability, and although still at an early stage is already noticing the accelerating uptake of sustainability in the industry. Although certain measures have been taken by the New Zealand Green Building Council and government mandates, there remains still a common assumption that there is considerable hesitation and skeptism in the market from both an investor’s and a building owner’s perspective. The research presented in this paper reports on the results of an investigation into the market perception toward sustainable buildings from the investment community in New Zealand. Property developers and investors from New Zealand were surveyed about their perception of sustainable buildings in New Zealand and their actions with regards to their own commercial portfolios, as well as the impact sustainability is having upon investment decisions. This paper presents the results of research conducted into the relationship between the elements of sustainability and the market value of an office building. The paper provides an insight into the rapidly evolving area of sustainability and office buildings, with the emphasis placed on the valuation process that seeks to assess a hypothetical purchaser’s perspective of this relationship."
View the Full Paper

AUTHOR: Muhammad Najib Razali And David Martin Juanil
TITLE: Internet Business Strategy: Case Study Of Property Developers In Malaysia |Refereed|
KEYWORDS: "Internet, property developers, Malaysia"
ABSTRACT: "This paper presents the results of a study which analysed property development companies in Malaysia on internet business strategy. The implementation of Internet as a synergy in business is currently one of the contemporary debatable topics in the evolution of business. This is due to the emergence of information and communication technology worldwide. As a developing country, property business in Malaysia must take up the challenge to improvise service delivery. Thus, this study attempts to examine the evolution of internet business strategy similar to a study done by Rowley, R. back in 2003. Similar methods were also used in this study with some modifications to suit the purpose of the study. Data were collected from various real estate related companies’ web sites. The services and information offered in these websites are discussed and used to describe the growth of internet usage in real estate business. From the findings, most of the real estate businesses in Malaysia are still in the infancy stage of using Internet as a tool in business. However, some of these companies do have adequate information on business which would provide significant impact to the global transparency index."
View the Full Paper

AUTHOR: Elias Oikarinen
TITLE: The Two-Way Interaction Between Housing Prices And Household Borrowing In Finland |Refereed|
KEYWORDS: "Borrowing, credit, dynamics, housing."
ABSTRACT: "Housing prices and household borrowing are expected to be tightly connected to each other. Better availability of credit eases liquidity constraints of households, which is likely to lead in higher demand for housing. On the other hand, housing prices may significantly influence household borrowing through various wealth effects. Employing time series econometrics this study shows that there is significant two-way interaction between housing prices and housing loan stock in Finland, just like the theory suggests. Furthermore, housing appreciation has a notable positive impact on the amount of consumption loans withdrawn by households. It appears that there is no similar relationship between stock price movements and household borrowing. Understanding the two-way interaction between housing prices and credit is of importance, since it is likely to augment boom-bust cycles in the economy and increase the fragility of the financial sector."
View the Full Paper

AUTHOR: Geoffrey Page
TITLE: Australian Graduates' Perspective Of Their Professional Socialization |Refereed|
KEYWORDS: "professional socialization, graduate outcomes"
ABSTRACT: "Professional socialization can be described as the acquisition of values, attitudes, skills and knowledge pertaining to a professional subculture. The literature suggests that study and consideration of professional socialization assists in improving tertiary education and graduates’ preparedness for the real world pressures of professional working life. This paper presents Australian valuation graduates’ perspective of their socialization into the valuation profession. It identifies the values and skills they deemed important as a novice professional value and when they believed they had achieved the status of a professional valuer. It provides insights from the novice professional valuer, for the provision of mentoring and supervision and what may be implemented by the profession to deal with some perceived shortcomings."
View the Full Paper

AUTHOR: Elli Pagourtzi, Vassilios Assimakopoulos, Akrivi Litsa, And Fotios Petropoulos.
TITLE: The Advanced Forecasting Information System Pythia: An Application In Time Series Of Mortgage Loan In Uk |Refereed|
KEYWORDS: "Advanced forecasting information systems, loan, modelling, monitoring, mortgage, PYTHIA, real estate time series, theta."
ABSTRACT: "The paper presents PYTHIA, a business forecasting platform designed and developed at the Forecasting Systems Unit of National Technical University of Athens. PYTHIA has many functionalities that can be useful not only to individuals that want to perform forecasts but also to managers from companies and organisations that need to forecast the progress of their product or services make the appropriate adjustments and organize their activities. As a case study we used mortgage data in UK that we found from the Council of Mortgage Lenders. Specifically, we use and compare the Theta method and other forecasting methods, available in PYTHIA, to forecast the time series mortgage loan data. We also point out how a bank could use this data and improve its loan policy. The mortgage loan time series used for the forecasts cover the categories of all buyers, first-time buyers and home-movers. Data is organized in quarters, from the first quarter of 1979 up to the first quarter of 2007."
View the Full Paper

AUTHOR: Pu Lifen
TITLE: Basel Ii And Its Impact On Property Market In Hksar
KEYWORDS: "Basel II, capital adequacy ratio, property lending"
ABSTRACT: "The Basel Accord is developed by the bank for International Settlements (BIS) as soft law for international banking governance. A new Basel Accord, the Basel II Accord was agreed by all the members of the Basel Committee on Banking Supervision (the Committee) in 2005. Under the Basel II Accord, the capital adequacy ratio remains as a core component. However, the risk weights for classified risks have been changed. As far as property market is concerned, the risk weight for residential mortgage is lower than before, but the risk weight for commercial real estate become much stricter than before. These changes would unavoidably influence the lending attitude and lending capacity of banking institutions. Therefore, property market will be influenced. Considering the property markets in different jurisdictions have their own special characteristics, this paper will focus on the impact of Basel II in Hong Kong. Furthermore, the impact will be discussed from the macro and micro perspectives."
View the Full Paper

AUTHOR: Kathryn Robson
TITLE: "Juggling The Needs Of Students And Employers In The Workplace Arena: A Discussion Of The Future Direction Of The Work Experience Program, Within Property/Valuation Education At Rmit University, Melbourne" |Refereed|
KEYWORDS: "Work Based Learning, employer satisfaction, student expectation, educational relevance"
ABSTRACT: "The model of work based learning (Cooperative Education) in the School of Property, Construction and Project Management at RMIT University is three days a week, full time, paid work, for a minimum of 26 weeks in the final stages of the Property and Valuation degrees. Work based learning has been a formal component of the property and valuation degrees at RMIT since 1977 and most of the current employers were once students in the same program. At the moment there is a shortage of graduates in the property and valuation industries and even the academically weak students have found places, but in an ever changing and competitive world this situation may change and we need to ensure that the program is both relevant and worthwhile. This paper examines the experiences and expectations of both the students and employers, via individual personal interview held during the academic biannual visit to the workplace and an anonymous survey. As the numbers of new students in the school has recently increased, automatic work placement may no longer be the case and strategies will have to be implemented to take this possible scenario into account. In order to be better equipped to make these decisions, this research has been initiated to clearly understand the needs of the employer and the experiences of the students. Thereby having the necessary tools to both better prepare the students and also be able to expand the employer base into a broader business forum."
View the Full Paper

AUTHOR: Roselina Shakir
TITLE: "Board Size, Board Composition And Property Firm Performance"
KEYWORDS: "Board of directors, corporate governance, listed property firms."
ABSTRACT: "In light of the 1997 Asian financial crisis, the effectiveness of good governance in Asian economies has been a confronting issue. Agency problems arise when ownership is separated from management. This situation raised the key issue in corporate governance of how to effectively monitor managers and to exercise control so that managers act in the best interest of the shareholders (Zhuang, Edwards and Capulong, 2001). Amongst others, the existence of a board of director is an important system for shareholding monitoring and control where board composition is the most common aspect discussed. Despite the survey indicating preference for good corporate governance, empirical research examining governance mechanisms in relation to performance has revealed mixed and inconclusive findings. This research empirically examines the relationship between board composition and performance of property companies listed at Bursa Saham, Malaysia. Specifically, the research question that will be the basis for hypothesis formulation is as follows: Does board composition of a firm, namely, board size, percentage of executives have an effect on firm performance?"
View the Full Paper

AUTHOR: Peter Rossini And Paul Kershaw
TITLE: Automated Valuation Model Accuracy: Some Empirical Testing |Refereed|
KEYWORDS: "Automated Valuation Models, Residential Valuation, Valuation Accuracy"
ABSTRACT: "In recent years there has been a rapid move towards the adoption of Automated Valuation Models (AVMs) for basic residential valuations for mortgage security purposes. In Australia several commercial organisations now offer such residential valuations, but very little is known about the accuracy of these. While the accuracy of commercial models is almost impossible to measure, one problem is that few people understand the practical implications of the accuracy measures. Put simply most users of these products misunderstand the level of accuracy involved. This paper uses a data base of sales in Adelaide, South Australia to measure the accuracy of basic automated valuation models under a range of different model scenarios. Some very simple “models” based on the application of elementary descriptive statistics provide remarkably accurate estimates based on some evaluation criteria. Other models using more sophisticated hedonic price models produce better results but the small increase in accuracy may not justify the cost to develop and maintain these models. It is hoped that this paper will lead to a better understanding by users of these products of the accuracy of Automated Valuation Models."
View the Full Paper

AUTHOR: Steven Rowley And Claire Roberts
TITLE: The Impact Of Landscape Quality On Land Values And Development/Investment Decisions
View the Full Paper

AUTHOR: John Sheehan And Ona Kanas
TITLE: Carbon Property Rights In Soil
KEYWORDS: "Carbon sequestration, property law, property rights, soil science."
ABSTRACT: "The commodification of soil to permit carbon sequestration and hence trading in the resultant carbon rights is examined as an emerging facet of climate change management. As the developed world moves towards carbon offsets and decarbonisation, the Australian continent provides a capacity to be a land based repository of carbon in either select species of vegetation grown specifically for this purpose, or where soil is conserved to sequestrate carbon. A presumption exists that carbon is sequestrated differentially in various soil landscapes, which typically comprise a mixture of different soil types. Diffuse boundaries between soil landscapes and significant differences assigned to same soil landscapes, albeit in different areas, significantly impacts sequestration of carbon. In some Australian states, there has been partial crystallisation of legal rights in carbon. Whilst distinguishable from the elemental land property right, these “rights in carbon” remain part of the land based property right. Carbon rights in soil remain conceptually part of the legal bundle of rights held by the proprietor of the land property right. This legal maxim is explored as the core issue to be resolved if carbon property rights in soil are to be conceived."
View the Full Paper

AUTHOR: Garrick Small
TITLE: Development Implications Of Long Term Social Trends
KEYWORDS: "Property market forecasting, long term demographic and economic trends, property development, social change, housing affordability"
ABSTRACT: "Most property decision making is based on the assumption that the property market fluctuates on about an eight to ten year basis about a relatively stable underlying long term trend. This has inclined research to focus on investigations using data usually less than three periods long in forecasting future directions. The longer terms data, say over the last century, suggests that the last thirty five years represents a marked change from the longer term trends in economic behaviour. Analysis of this period suggests that the causal factors are largely exogenous to the economy and appear to be in the process of another change similar to that experienced in the decade loosely centred about the year 1970. The implications for development and investment are explored within this wider view of the likely long term direction of property. It is argued that the current interest in housing affordability should be viewed as reflecting a structural rather that cyclic change. The viability of the development industry within a stable-state yield dominated property market is considered. It is concluded that despite property ownership moving to an investment profile last seen in the 1960s, it has the capacity to remain a viable, and perhaps more desirable investment vehicle, despite an initial adjustment phase."
View the Full Paper

AUTHOR: Song Shi
TITLE: Evaluating A House Price Index Based On The Sale Price Appraisal Ratio (Spar) Method
KEYWORDS: SPAR House Price Index
ABSTRACT: This paper contributes to the literature on the sale price appraisal ratio (SPAR) as an alternative house price index methodology. Housing market transaction data for 12 cities or districts in New Zealand for the period 1994 – 2004 is utilised to test the effect of measurement errors in assessed values on index accuracy and temporal aggregation on index stability. The main findings are: 1) temporal aggregation effect on the SPAR index stability is a constraint at the monthly level with respect to this New Zealand data set. 2) reporting sample size has a much larger effect on the precision of the SPAR index than the frequency of reassessments. Random measurement errors in assessed values tend to cancel out each other when the number of sales per period is large. 3) Any reassessment tends to disturb the SPAR index for the reassessment period. Consistency errors in assessed values tend to be more likely to accumulate when more frequent reassessment exercises are engaged.
View the Full Paper

AUTHOR: Sonia Sahni And Prachi Phadnis
TITLE: Real Estate Sector - The India Story
View the Full Paper

AUTHOR: Cyrus Seera Ssebugenyi
TITLE: Valuation Of Real Options Using The Minimal Entropy Martingale Measure |Refereed|
KEYWORDS: "Real Options Analysis, Minimal Entropy Martingale Measure, Multinomial Lattices."
ABSTRACT: "It is well known that when markets are incomplete, the no-arbitrage assumption is not sufficient to determine the exact value of an option. In this article we investigate the problem of real options valuation in multinomial trees. A concrete single real options value based on the minimal entropy martingale measure is provided. Using the MEMM to valuate options in multinomial lattices is an easy procedure which can easily be implemented by practitioners."
View the Full Paper

AUTHOR: Connie Susilawati, Brigid Morahan And Stanley Yeung,
TITLE: Comparative Assessment Of Characteristics Influencing The Industrial Property Markets In Sydney And Hong Kong |Refereed|
KEYWORDS: "Industrial property, HongKong, property markets, Sydney."
ABSTRACT: "Industrial property is commonly located in a designated ‘industrial’ precinct. An industrial property has a specific design and a number of services to support industrial activities including manufacture, distribution and transportation. Although it has a unique characteristic, certain industrial factor might operate differently in different countries. The aim of this paper is to provide a comparison between the Sydney and Hong Kong industrial property characteristics and to highlight their similarities and differences. This exploratory research used secondary data to provide background information of government policy and market conditions. Two case studies were use to illustrate similarities, trends, differences and to explore town planning, specific property characteristics including location, design and layout. Then, analyse whether these factors influence the performance and value of an industrial asset. The location of industrial properties varies between each country and depends heavily on infrastructure. It was noted that the town planning restrictions not only vary between markets and cities but also between property lots. The market conditions of both industrial markets were investigated and the supply and demand and rental levels in both cities were distinctly opposite."
View the Full Paper

AUTHOR: Mohammad Tahir Sabit Haji Mohammad
TITLE: Sustaining The Means Of Sustainability: The Need For Accepting Wakaf (Waqf) Assets In Malaysian Property Market
KEYWORDS: "Wakaf, Waqf, Property Real Estate, Market, Creation of, Sale & Purchase, Leasing"
ABSTRACT: "The socio-economic equity and justice in terms of education, employment, shelter, health care, safety and more, for all, now and then form the spirit of sustainability. No historical event can represent this but the private Muslim charitable perpetuities (i.e. wakaf/waqf). wakaf is the means of human sustainability which needs to be self-reliant. To be independent and self-reliant, the wakaf institution needs to keep its assets income-generating. Unfortunately, in Malaysia thousands of acres of waqf lands and properties are idle, underdeveloped, or underperforming, due to their unequal treatment by law and market forces, in the property market. To overcome this problem, access to land market and access to credit market is needed. Since the present legal constraints prevent from such markets, this paper proposes a framework for the marketability of waqf properties, as permitted by Islamic law and is achievable through the reformed concepts of Malaysian Land Administration System and its components. Thus, for the recognition by market forces, two types of markets, based on fair market price and rental rates, are visualized: (a) sale and purchase market for properties held as investment assets and that purchased through the income of the capital of waqf; (b) leasing market, whereby long term leases, equivalent to that of leasehold alienation, will be effected. To implement these proposals, few amendments to some of existing laws are offered."
View the Full Paper

AUTHOR: Ting Kien Hwa And Tan Chu Yao
TITLE: The Role Of Malaysian Residential Properties In A Mixed Asset Portfolio
KEYWORDS: "Malaysian residential properties, portfolio diversification, mean variance analysis"
ABSTRACT: "This study examines the role of Malaysian residential properties in providing portfolio diversification benefits in Malaysian mixed asset portfolios. The mixed asset portfolio comprises shares (represented by Kuala Lumpur Composite Index, Kuala Lumpur Second Board Index, Kuala Lumpur Property Sector Index), bond (represented by Malaysian Government Securities Index) and Malaysian residential properties (represented by the Malaysian House Price Indices for the various house types and geographical locations). The mean-variance framework is used to determine the optimal asset allocations in terms of preferred house types and geographical locations with other financial assets for the 1Q2000-3Q2006 study period. The findings of this study demonstrate that ex-post efficient portfolios typically devote a significant allocation to residential properties (up to 66.68%), which will improve the riskadjusted performance up to 73.87%. Further improvement of risk-adjusted returns can be achieved (up to 89.79%) by adding one more different residential property class into the mixed asset portfolios that already consists of one residential property class. Investors are also able to construct well diversified mixed asset portfolios by incorporating residential properties from two different districts while achieving higher risk-adjusted performance. This study concludes that there are diversification benefits by incorporating residential properties in a mixed asset portfolio in the Malaysian investment context. "
View the Full Paper

AUTHOR: Richard G. Reed And Sara J. Wilkinson
TITLE: The Business Case For Incorporating Sustainability In Office Buildings
KEYWORDS: "The effect of climate change and global warming has received increased attention in society with constant reminders about the importance of energy efficiency and sustainability in buildings. Whilst the focus is often placed on smaller items such as plastic bags, air conditioners and motor vehicles, the emphasis has recently shifted to structures in the built environment. Office buildings have been identified as contributing significantly to global warming during their building lifecycle with a substantial contribution to CO2 omissions. In response, building designs and construction techniques have evolved over time to improve energy efficiency and reduce CO2 omissions. Within the property and construction sectors there is now more widespread acceptance by the profession of the impact of our use of resources within buildings and the links to climate change and global warming (Dixon et al, 2007). Whilst the focus has been placed on smaller items such as plastic bags, air conditioners and motor vehicles, the emphasis has shifted to the built environment. Buildings contribute significantly to global warming during their building lifecycle, typically of 80 years, with a substantial contribution to CO2 emissions. In response, building designs and construction techniques have evolved over time to improve energy efficiency and reduce CO2 emissions however there is a significant issue with the existing stock of buildings. Most developed countries have a substantial stock of existing buildings in various states of repair and utility. Generally there is a correlation between building age and building condition, with the older stock typically in the poorest physical condition. This is especially apparent in low grade commercial and industrial stock where owners are reluctant to invest in repairs and maintenance because costs cannot be recouped easily. Given the lifecycle of buildings it can be said that we already have most of the buildings that will be with us in the next 50 or so years. Much of our existing older stock is in poor condition and operates very inefficiently – for example energy consumption is high (Wilkinson and Reed, 2005). However there are convincing social, environmental and economic reasons why we should consider the retention of buildings. This paper examines the arguments for adaptive reuse of existing buildings and poses some initial questions in relation to relevant areas of further study."
ABSTRACT: "Sustainability, adaptive reuse, refurbishment, existing buildings."
View the Full Paper

AUTHOR: Peter Wills
TITLE: "The Sustainability Agenda In Corporate Real Estate, Does It Exist"
View the Full Paper

AUTHOR: Christopher Wright, Christopher Eves And Rodney Jefferies
TITLE: Bubble Geometry And Chaotic Pricing Behaviour |Refereed|
KEYWORDS: "Fisher, market behaviour, market equilibrium, market-worth, price, price bubble, rational expectations, value-estimate."
ABSTRACT: "This paper is a deductive theoretical enquiry into the flow of effects from the geometry of price bubbles/busts, to price indices, to pricing behaviours of sellers and buyers, and back to price bubbles/busts. The intent of the analysis is to suggest analytical approaches to identify the presence, maturity, and/or sustainability of a price bubble. We present a pricing model to emulate market behaviour, including numeric examples and charts of the interaction of supply and demand. The model extends into dynamic market solutions myopic (single- and multi-period) backward looking rational expectations to demonstrate how buyers and sellers interact to affect supply and demand and to show how capital gain expectations can be a destabilising influence – i.e. the lagged effects of past price gains can drive the market price away from long-run market-worth. Investing based on the outputs of past price-based valuation models appear to be more of a game-of-chance than a sound investment strategy."
View the Full Paper

TITLE: "Heterogeneity In Housing Attribute Prices: An Interaction Approach Between Housing Attributes, Absolute Location And Household Characteristics" |Refereed|
KEYWORDS: "Absolute location, Expansion method, Hedonic model, Household profile, Shenzhen"
ABSTRACT: "Coefficients of housing attributes in most hedonic specifications are held constant under the assumption that each attribute has one unique marginal price throughout the entire market area. However, there’s increasing evidence that the marginal prices of some key housing attributes do vary according to particular systematic patterns. In this paper, we employed expansion methods by incorporating both {X, Y} coordinates and buyer’s characteristics to examine the spatial and socio-economic heterogeneities in housing attribute prices within the Shenzhen, China housing market. The results provide strong evidence that the marginal prices of key housing attributes are not constant but vary with household profile and absolute-location context. Besides, it is strongly proved that spatial expansion method with {X, Y} coordinates is also practicable to property assessment and urban studies of China."
View the Full Paper

AUTHOR: Sharon Yam Lee Hong, Maziah Ismail, Tan Soo Yin,
TITLE: Corporate Social Responsibility In Housing Development - The Developers’ Perspective |Refereed|
KEYWORDS: "Corporate social responsibility, housing development, housing developer."
ABSTRACT: "Businesses not only need to fulfill their economic obligations, but also have to be socially responsible to stay competitive. This study examines corporate social responsibility (CSR) from housing developers’ perspective, specifically on how CSR would benefit project marketability. Qualitative approach is opted as this area has not been well established. Intensive interviews with housing developers were conducted to explore their perceptions on CSR, level of commitment and limitations in implementing CSR. Observation study on housing development trend from 1985 to 2004 was also performed to identify major metamorphoses that have taken place particularly from the aspect of CSR incorporation as well as to validate the interviews. Research findings show that the developers have been placing more emphasis on CSR elements for the past five years to enhance the living quality of residents. Most of them are committed to include CSR not only to improve marketability, but also to achieve the objective of sustainable housing development."
View the Full Paper

AUTHOR: Wan Zahari Wan Yusoff And Maziah Ismail
TITLE: Fm-Servqual: A New Approach Of Service Quality Measurement Framework In Local Authorities
KEYWORDS: "Facilities management, local authority, service quality."
ABSTRACT: "The issue of efficient delivery system in Local Authorities (LAs) becomes the main focus for the Malaysian government. This involves the Facility Management that coordinates the management of human capital, premises, technology and working processes in LAs. The role of LAs in providing various services in the rapid changes of environment, contributes to the complexities of the LAs functions. At the same time, the society demands a set of high quality services, thus making the functions of LAs becomes more challenging. The purpose of this paper is to measure Service Quality in local authorities through development of instrument of FM-SERVQUAL. Basically, Service Quality is an abstract and elusive phenomenon due to its characteristics; intangibility, heterogeneity and inseparability between process and output. These characteristics causes Service Quality standard difficult to measure and evaluate. In evaluating service quality, FM-SERVQUAL instrument has been developed based on Integrated Facility Management Framework which involves the measurement of 40 elements of components of human capital, premises management, technology and ICT and working processes. This study involves Johor Bahru City Council as a case study. Two phases of data collection is carried out. In the first phase, 100 respondents were involved while in the second phase, 191 respondents were involved. From the analysis, it showed that, five (5) elements in management of technology and ICT and six (6) elements of property management were below the Service Quality level. Meanwhile, most of the elements of other services were at minimum quality level. Therefore, the FM-SERVQUAL instrument under the Integrated Facility Management Framework, which was developed through an empirical basis, is able to measure Service Quality in such complexities LAs environment. Besides as an effective diagnostic tool in identifying a lacking quality element of services, FM-SERVQUAL also serves as an essential gauge in policy formulation and future planning of an organization."
View the Full Paper

AUTHOR: Zaiton Ali,Stanley Mcgreal, Alastair Adair And James R. Webb
TITLE: Corporate Real Estate Strategy: The Malaysian Perspective |Refereed|
KEYWORDS: "Corporate real estate, financial performance, Malaysian companies, multivariate modelling, strategies."
ABSTRACT: "This study analyses the relationships between CRE strategy and financial performance of companies in Malaysia during 1998 and 2003. The identification of CRE strategies is based on the seminal work of Nourse and Roulac (1993) and maps these strategies to the financial performance of companies through multivariate models. The results indicate that 80% of the companies examined had a dominant CRE that matched the Nourse and Roulac framework in both study periods. For the 1998 analysis there was no apparent link between CRE strategy and share performance indeed those companies not having a strategy had better share performance. In contrast, there was evidence of CRE strategy making a contribution to share price in 2003. In particular the strategy to facilitate managerial process and knowledge framework is shown to enhance financial performance compared to other CRE strategies or the no strategy alternative. This study concludes that CRE strategy can make a positive contribution to financial performance, but needs more attention from management in order to maximize its potential."
View the Full Paper

AUTHOR: Chyi Lin Lee And Ting Kien Hwa
TITLE: Securitised Real Estate In A Mixed-Asset Portfolio: The Case Of Malaysia
KEYWORDS: "Mixed-asset portfolio, property shares, REITs, mean-variance and downside risk frameworks."
ABSTRACT: "The issue of whether Malaysian securitised real estate is an effective indirect property investment vehicle has drawn increasing attention from investors, particularly the Malaysian institutional investors. Previous studies on Malaysian securitised real estate market had emphasised on performance analysis. Therefore, this paper seeks to examine the role of Malaysian property shares and REITs in a mixed-asset portfolio from 1991 to 2006. The results show property shares do not provide any diversification benefits nor portfolio return enhancement, whereas equally-weighted REITs portfolio does provide diversification benefits and return enhancements under the mean-variance and downside risk frameworks. Besides, the equally-weighted and value-weighted REITs portfolios do behave differently."
View the Full Paper

AUTHOR: Patricia Fraser, Martin Hoesli And Lynn Mcalevey
TITLE: A Comparative Analysis Of House Prices And Bubbles In The U.K. And New Zealand
KEYWORDS: "Real house prices, Real disposable income, Fundamentals, Present value, Time-varying risk, Bubble"
ABSTRACT: "Utilising a dynamic and forward-looking present value model, our analysis investigates whether bubbles exist in the New Zealand and U.K. housing markets by constructing an implied fundamental (real) price series based on what house prices ‘should be’ given expectations of household real disposable income and comparing these prices with actual prices. The analysis also investigates the type of behaviour driving revealed deviations from fundamental value. While we find evidence of bubbles in both markets they occur in different time periods and would appear to be driven by different behaviour. The results suggest that U.K. house price deviations from their implied fundamental value are driven by an overreaction to future income with price dynamics only coming into predominance when prices are well above or below this value. In contrast, New Zealand deviations from fundamental value appear to be driven by price dynamics alone."
View the Full Paper