Proceedings from the PRRES Conference - 2017
24th  Annual Conference, January 21 - 24 2018
 Auckland, New Zealand


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 Sandy Bond. Full papers were refereed with authors being required to make any changes prior to presentation at the conference and subsequent publication as a refereed paper in these proceedings.   Non-refereed presentations may be presented at the conference without a full paper and hence not all non-refereed presentations and/or papers appear in these proceedings.  All authors retain the copyright in their individual papers.



AUTHOR: Neville Hurst, Dulani Halvitigala
TITLE: Have Real Estate Agents’ Perceptions On The Importance Of Sustainability In Housing Changed? |Refereed|
KEYWORDS: "sustainability, advertising, real estate agents, housing; marketing"
ABSTRACT: "Energy used in housing is a major contributor to Australia’s energy consumption and associated environmental impacts. As market facilitators and influencers, real estate agents are expected to play an active role in motivating home buyers in purchasing energy efficient housing through advertising. This research aims to examine whether real estate agents effectively incorporate sustainability features in their advertisements and if their perceptions of the importance of advertising sustainability features have changed over the last five years. Mixed method research was employed to determine whether environmental issues were considered to be a major factor by real estate agents when advertising detached dwellings. The first set of in-depth interviews was conducted with 10 real estate agents in 2013, followed by the second set of interviews with another 10 agents in 2017. This was followed by an analysis of actual housing advertisements in Melbourne metropolitan and regional areas. It was found that the attitudes of real estate agents on the importance of advertising sustainability in residential properties have not changed significantly even though they have become more aware of the climate change debate over the years. They would only emphasise sustainability characteristics in their marketing campaigns if those features would have noticeable financial implications. The findings suggest the free market strategy is likely to imbue sustainability into housing markets, but market facilitators, buyers and sellers have not yet reached a critical mass in terms of them being considered a norm. The necessity of reviewing the current legislative mechanisms in order to align the intent of the legislation with the actual outcomes is highlighted."
View the Full Paper

AUTHOR: Calvin Chua, Ong Seow Eng, Davin Wang
TITLE: The Role Of Online Ratings In The Agent Selection Process |Refereed|
KEYWORDS: "property agent review system, agent review scores, Word-of-Mouth (WOM), salience bias, online review"
ABSTRACT: "Conflicts of interests between principals and agents coupled with information inefficiencies inherent in the real estate industry create challenges in the agent selection process. Results from a survey study demonstrate that principals resort to traditional and electronic “Word-of-Mouth” (WOM / eWOM) strategies to overcome these informational inefficiencies to facilitate the agent selection process. WOM strategies used in the agent selection process are important because successful selection of a “good” agent reduces any subsequent contractual risk. However, reliance on WOM guidance, whether traditional or electronic, reinforces specific cognitive biases towards “salient” features in the subjective information that is shared. These features form the basis of a salient bias within principals towards the agent selection process."
View the Full Paper

AUTHOR: Jason Twill, Pernille H. Christensen
TITLE: From Cost Benefit Analysis To Integrated Value: How Can Enhanced Valuation Frameworks Move Us Beyond Sustainability Toward Regenerative Built Environments? |Refereed|
KEYWORDS: "property valuation, integrated value, natural capital, social capital, human capital"
ABSTRACT: "The sustainability movement has increased the technical capabilities of built environment practitioners to design and deliver “living” buildings and infrastructure projects that mimic an ecosystem. These projects have demonstrated the ability to produce clean water and air, improve mental health and wellbeing, eliminate greenhouse gases and restore native habitat. Harnessing these capabilities and design knowledge to make “living” buildings mainstream, however, has been constrained by valuation protocols for the built environment that do not currently account for environmental and social value creation. This constraint may in turn limit or bias decision-making, distort the market and slow innovation within the property industry. This paper explores how we can expand upon existing cost-benefit and life-cycle cost analysis models toward “Integrated Value”, a new concept of property valuation that integrates natural, human and social capital values alongside traditional built and financial capital. "

AUTHOR: Georgia Warren-Myers, Gideon D.P.A. Aschwande, Franz Fuerst, Andy Krause
TITLE: Are We Underestimating The Sea Level Rise Risk For Property? |Refereed|
KEYWORDS: "Sea level rise, risk, property stakeholders, climate change"
ABSTRACT: "Sea level rise forecasts identify a potential risk and uncertainty for property owners, occupiers and stakeholders. Currently, this risk is likely underestimated, with little action being taken to address it. Recent data has suggested that previous estimates by Intergovernmental Panel on Climate Change (IPCC, 2013) of a 1 metre rise by 2100 sea level rise are severely underestimated and could reach 2.7 metres (NOAA, 2017). The uncertainty of modelling, forecasting, data availability and constant change in externalities makes this a challenging concept for property stakeholders to consider how to tackle these challenges. However, as this study demonstrates using a case study of the bayside municipality of the City of Port Phillip, even conservative measures of sea level rise and the ancillary implications of storm surge, wave heights and flooding exponentially increase the risk to property and property values. Consequently, there is increasing need for the property industry, sector, stakeholders and academics to open the discussion as to strategies for adaption and mitigation."
View the Full Paper

AUTHOR: Jiajun Tang, Kimberly Winson-Geideman
TITLE: "The Dynamics Of Housing Affordability For Young Households In Melbourne Australia, 2006-2016" |Refereed|
KEYWORDS: "Housing Market, Urban and Regional Policy"
ABSTRACT: "This paper investigates the dynamics of housing affordability for young households in Melbourne from 2006 to 2016 and also reveals the effect of the grant on housing affordability among suburbs. Firstly, this paper utilises the ratio measure to provide a general guide to housing affordability. Then the entry measure method is used to compare an estimated affordable price with the median market property price to determine whether the suburb is affordable for young households. Furthermore, the first homeowner grant (FHOG) is incorporated into the affordable property price to evaluate the effect of FHOGs on the affordability of suburbs in the Melbourne metropolitan area. Result are shown in term of changes in the number of suburbs that are considered affordable over time with and without first home buyer support scheme. The results show property becoming less affordable for young households in 2016 compared to 2006, however, the situation was worse during 2010 and 2011. Lower interest rates have significantly improved housing affordability while the FHOGs only had small effects. "
View the Full Paper

AUTHOR: André Kruger
TITLE: Climate Change Risk Premium For Residential Coastal Real Estate |Refereed|
KEYWORDS: "model, climate change, sea level rise, risk, risk premium, property valuation"
ABSTRACT: "Problem/Purpose: The changing climate and specifically the rising sea level presents a risk to the future benefits of residential coastal real estate. The purpose of this paper is to propose a model property valuers can employ to derive a risk premium for properties at-risk of being permanently inundated due to the rising sea level. Design/methodology/approach: A mixed methods approach employing a two stage sequential exploratory design was applied to investigate property valuer’s lived experience regarding the changing climate and the rising sea level. Findings: The findings indicate that property valuers pay no attention to the risk posed by the rising sea level and this can have far-reaching consequences for the coastal real estate market and the economies of coastal towns in South Africa. Research limitations/implications: The research is restricted to residential coastal real estate on the Southern Cape Coast of South Africa. The proposed model reflects the researchers attempt to determine a risk premium and could be subject to a different interpretation by another researcher. As the first study of its nature on the risk posed by rising sea levels on property market values, the research lacks external validity. Further research may be required validate the findings. Takeaway for practice: The model provides property valuers with an uncomplicated approach to identify at-risk residential coastal real estate and an objective methodology to derive a premium based on the risk of rising sea levels. "
View the Full Paper

AUTHOR: Dulani Halvitigala, Hera Antoniades, Chris Eves
TITLE: Coworking Culture – Challenges And Opportunities For Office Landlords |Refereed|
KEYWORDS: "challenges and opportunities, collaborative spaces, coworking spaces, office landlords "
ABSTRACT: "Coworking relates to the use of space, which can be in the form of very short office leases ranging anywhere from between a day to a month and longer. Workers have the option to occupy and work in the space independently, collaboratively or in nominated teams. Australia has recorded the highest growth of coworking spaces in the world in the last 3 years. As of January 2017, there are 239 coworking spaces throughout Melbourne, Sydney and Brisbane; with a very rapid current growth rate, industry predicts approximately 1.2 million members globally would be using coworking space by the end of 2017. Many landlords are being challenged by this growing demand for flexible, scalable, collaborative spaces with short term leases. A desktop analysis of the top 12 coworking providers in Melbourne is undertaken. The findings identify two main challenges confronting landlords. Firstly the reliance on coworking operators and their survival with changing market conditions, and secondly, transforming traditional office spaces into engaging coworking vibrant hubs."
View the Full Paper

AUTHOR: Hao Wu, Bo Qin
TITLE: A Transition Of The Brownfield Holding Firm In China |Refereed|
KEYWORDS: "brownfield development, transaction cost, liability, firm structure"
ABSTRACT: "China’s industrial structural variation has led to emergence of many former industrial sites turning into alternative uses. This paper examines one of the large brownfield sites located in Beijing and its asset holding state-owned-enterprise (SOE) for both of their transformation. It explores a social cost minimising mechanism for brownfield site. Historic and spatial patterns reveal not only brownfield reuse as re-development, but also transformation of the asset holding organisation. Results show some forces behind transformation of brownfield site and its asset holding organisation. Considering costly institution innovation, firm structure change, socio-politico interplay, SOE may act like the bearer of social warranty to balance or internalise brownfield development risk and social cost. Findings are directly policy relevant."
View the Full Paper

AUTHOR: Abdul-Rasheed Amidu, Osahon Ogbesoyen, Alirat Olayinka Agboola
TITLE: Exploring Gaps Between Real Estate Curriculum And Industry Needs: A Mapping Exercise |Refereed|
KEYWORDS: "Academic curriculum, Industry needs, Mind mapping, Real estate, UK"
ABSTRACT: "The objective of this paper is to explore the extent to which current real estate academic curriculum align with industry needs in order to identify key areas for reform. A case study of four Universities was undertaken in the study. These cases were randomly selected from the Midlands, Northern and Southern parts of the UK. Data for the study was collected through a desk-top review of real estate curriculum from the four selected Universities and analysed using mind mapping approach. The study revealed that though knowledge from real estate academic curriculum aligns with the industry in six out of nine knowledge base areas, there were gaps in knowledge in the three areas considered most significant to the needs of industry. The study, therefore argues that universities may have dedicated enormous resources to educating real estate graduates in modules that are not necessarily essential to their daily job roles thereby leaving graduates in a position to rely on industry during their early employment. This study presents the findings of a mind mapping exercise which identifies the key areas of actual curriculum that show gaps in real estate education offered by selected universities in the UK. The findings are significant and could inform future curriculum reform."
View the Full Paper

AUTHOR: Chien-Wen Peng, I-Chun Tsai
TITLE: Measuring The Costs And Benefits Of Favorable Tax Treatments For Owner-Occupied Housing-The Case Of Taiwan |Refereed|
KEYWORDS: "Owner-Occupied Housing, Favorable Tax Treatments, Efficiency, Equity"
ABSTRACT: "This study examines the favorable tax treatments for owner-occupied housing from an efficiency and equity aspect, highlighting the fiscal, macroeconomic and housing market consequences of the mix of these tax arrangements. From the fiscal perspective, the favorable tax treatments for owner-occupied housing reduces the tax revenue of both local and central government through exemption and relief measures and also government’s ability to provide better public services. These arrangements also provide substantial incentives to encourage households to buy rather to rent a house by reducing the relative cost of owning versus renting. It distorts households’ tenure choice, allocation of capital, and causing high housing price which may against the intended goal of promoting home ownership. According to our analysis, we suggest the governments to reconsider the current favorable tax treatments for owner-occupied housing, especially the mortgage interest deduction."
View the Full Paper

AUTHOR: Wejendra Reddya, Woon-Weng Wong
TITLE: Estimating The Impact Of Debt And Management Structure On A-Reits Performance |Refereed|
KEYWORDS: "REITs, management structures, interest rates, debt, Capital Asset Pricing, bonds"
ABSTRACT: "A-REITs first emerged on the Australian share market in the early 1970s, having grown in size to A$148bn in 2007 before plummeting to a low of A$38 billion in February 2009 (74% reduction). These devaluations have been attributed in part to high levels of debt financing over the A-REITs high growth phase (2001 to 2007), at times done using complex ownership structures. Since the GFC, A-REITs have once again thrived under a low interest environment outperforming broader stock and bond markets. Much of the recovery in the A-REIT sector was the result of debt restructuring and changes to management structure with several funds reverting to internal management. This study explores the sensitivity of A-REITs performance to changes in short and long term interest rates. To do this, the A-REITs funds are separated into four portfolios: ‘low debt’ and ‘high debt’ based on their relative debt to capital ratios, and ‘stapled’ and ‘unit’ based on their management structure as reported on the ASX website. Note that stapled funds are internally managed and unit funds are externally managed. The dataset covers a 21 year period (1995-2016) spanning multiple cycles in Australian capital markets using an asset pricing model. The results show that A-REIT returns were found to have a statistically significant relationship to market returns, inflation, short and long term changes in interest rates and in some cases inversion of the yield curve. All portfolios exhibited a positive relationship to changes in short term interest rates suggesting that REITs may benefit from higher rental yields in periods of economic growth associated with rising short term interest rates. All portfolios exhibited a negative relationship to changes in long term interest rates suggesting that REITs suffer from higher costs of debt associated with rising long term interest rates. This effect is greater for high debt compared to low debt funds. Furthermore, stapled funds appear to exhibit greater sensitivity to changes in long term interest rates than unit funds."
View the Full Paper

AUTHOR: Treshani Perera, Wejendra Reddy
TITLE: Ten Best Practices For Improving Australian Commercial Property Market Forecasting. |Refereed|
KEYWORDS: "Commercial property market, Forecasting, Forecast determinants"
ABSTRACT: "Property forecasting is an integral component in the property investment decision-making process for property fund executives, supporting asset allocation, property fund strategy and stock selection in a mixed-asset portfolio. It is critical that property professionals employ a wide - range of quantitative and qualitative techniques for property forecasting. The overriding aim with property forecasting is to predict reasonable estimates of property market performance based on core economic drivers. However, real estate forecasts could be prone to misinterpretation due to the high reliance on model assumptions. Hence, this study explores the current state of the Australian commercial property market forecasting to suggest ways of improving the quality of forecasts. The study follows a qualitative research approach, conducting 22 semi-structured interviews. The analysis has provided useful insights of the factors that aid and impede the forecast accuracy. Hence, a good forecasting does not require powerful algorithms, but following the ten best practices empirically demonstrated to boost accuracy in each step of the forecasting process: (i) clear objective setting, (ii) collaborative approach of knowledge sharing, (iii) spatial data analysis to capture the changes in the determinants, (iv) atheoretical quantitative approach, (v) Adhering to the parsimony principle, (vi) qualitative overlaying, (vii) eliminating biases, (viii) forecast validation, (ix) integrating error positive culture and (x) keep on forecasting. Therefore, the redesigning of the current commercial property forecasting process is highly recommended to improve forecast accuracy."
View the Full Paper

AUTHOR: Jim Berry, Tony Mcgough
TITLE: "Pricing Risk In Yields, And Its Impact On Real Estate Market Volatility" |Refereed|
KEYWORDS: "Real estate pricing, risk analysis, yield modelling"
ABSTRACT: "In the light of continued financial and economic turmoil, there has been a marked increase in the volatility in real estate markets. This has impacted the pricing of property assets, partly through market sentiment, particularly concerning risk. In a downturn, the perception of investment risk becomes increasingly important relative to overall total returns, and thus impacts on yields and performance of assets. In a recovery phase, and especially with low government bonds, risk and return compete for importance. This paper specifically considers the modelling of property pricing within this economic environment. The theoretical context begins by analysing the relationship between property yields and government bonds, incorporating expectations for property market performance. The analytical context then moves on to specifically include a measurement of risk which stresses its importance in investment markets since the Great Financial Crisis. The model thus incorporates macroeconomic and real estate data, together with an international risk multiplier, which is calculated within the paper. The paper considers the driving forces which have led to the volatile movements of yields, flying out in the crisis and falling to record lows since. It also looks at the impact this has had on investment in real estate and the driving forces behind investor decision making."
View the Full Paper

AUTHOR: Lois C Towart
TITLE: The Balance Sheet And Valuation Treatment Of Retirement Living And Aged Care Assets |Refereed|
KEYWORDS: "Valuations, Retirement Villages, Aged Care"
ABSTRACT: "Accounting standards, legislative framework and industry conventions govern how investment vehicles report their financial position. The aim is for transparent and timely reporting, enabling investors to make decisions. Australian real estate investment vehicles follow these standards, framework and conventions. Retirement Living and Aged Care (RLAC) investment vehicles are an emerging asset sector, particularly on the institutional investment market. While entities in the sector are required to follow accounting standards and legislative framework they are in a position to adopt conventions more in line with their asset sector. The RLAC sector comprises disparate property sectors, each with their own selection of asset classification and accounting treatment. Analysis of balance sheet treatment and valuations in the financial reports of Australian listed RLAC entities shows a greater reliance on directors’ (non-independent) valuations compared to listed real estate investment vehicles in conventional (commercial, industrial and retail) sectors. This has implications for the level of transparency in the RLAC sector. The current industry trend of increasing the delivery of care services to residents in retirement living assets has the potential to further increase the reliance on directors’ valuations. "
View the Full Paper

AUTHOR: Sandeep Narayan
TITLE: "Issues Facing Standardisation Of Property Valuation Practices: A Case Study Of Suva, Fiji" |Refereed|
KEYWORDS: Valuation Practices
ABSTRACT: "Globalisation and increasing foreign property investments are compelling nations to adopt international practices for greater transparency and better governance. However, it is important to recognise that a number of smaller countries struggle to implement international frameworks and practices. Using a case study of property valuations in Fiji, this paper highlights the institutional, informational and technical issues in implementation of the International Valuation Standards (IVS). Property Valuations are a source of information for financial reporting as well as crucial investment decisions. However, valuation is regarded as a “matter of opinion subjective to an individual’s assessment of different factors” (Isaac, 2002, p. 7). As a result, valuation standards at national and international levels play important roles in the promotion of ethics, integrity and impartiality in valuers (Hemphill, Lim, Adair, Crosby, & McGreal, 2014). Controversy surrounding the field of valuation calls for a critical analysis of valuation theory and the creation of frameworks for members of the valuation profession to adhere to in their normal practices (Australian Property Institute, 2007). Anecdotal evidences found in Fiji highlighted the needs for standardisation to be implemented in the valuation sector (Myers, 2013). Not on par with international practices, the valuation profession in Fiji had been administered by the Valuers Registration Act 1986, which was only responsible for determining the suitability of approved persons for registration as valuers (ACT No. 7 of 1986, 1986). The Act lacked in-depth information on day-to-day valuation practices, code of conduct and standards. Thus there had been calls for the implementation of formal valuation practice standards in the country (Myers, 2013). "
View the Full Paper

AUTHOR: Andrew Pai, Andrea Blake
TITLE: Towards Equitable Compensation: Inclusion Of Cultural Values In Valuation Of Customary Land Takings Compensation |Refereed|
KEYWORDS: "cultural value, customary land, equitable compensation, principle of equivalence sui generis, takings"
ABSTRACT: "In plural land tenure societies that have identifiable and prevailing customary land tenure, the ostensible need for equitable compensation when customary land is expropriated by State for public purposes is becoming recognisably prevalent and portentous. Equity in process and outcomes of expropriation is central to the issue and the critical question is, ‘how much compensation should State pay the expropriatee customary land owners?’ Quantification of compensation requires valuation which is a necessary and inevitable function to the expropriation decision. However, unlike valuation of compensation for legal property takings that is predicated on established legal paradigms and statutory pronouncements and prescription, customary land poses critical challenges to valuation because of its incompatibility to legal property systems and regimes. The default position of valuation has been the adoption of legal property conceptions and application of conventional real property valuation methods. This paper posits that valuation for customary land takings compensation predicated on this basis is vulnerable to inequitable outcomes and not responsive to customary land tenure and the principle of equivalence that underpins compensation. Against this status quo, this paper proposes the inclusion of cultural value in valuation formulation of customary land takings compensation assessment. "
View the Full Paper

AUTHOR: M. S. Chien, Y. J. E. Syub, H.C. Hsuc, Y. C., Hsud
TITLE: Does Economic Freedom Affect The Returns Of International Real Estate Securities? |Refereed|
KEYWORDS: "Real Estate, Economic Freedom, Generalized Method of Moment"
ABSTRACT: "This paper investigates whether higher trade and financial freedom affect the returns of international real estate securities. We add four sub-indices of economic freedom into the multifactor model of Bardhan et al. (2008), which covers the effects of global capital markets, domestic macroeconomic conditions, and firm-specific variables, and further apply the dynamic generalized method of moment (GMM) regression to estimate the annual data of 1,108 publicly-traded real estate companies in 24 economies from 2006 to 2013. This paper also examines whether the effects of the different variables on excess returns of real estate securities are similar or different in two income-level groups: high-income and middle-income countries. The main findings are as follows. First, in light of the evidence from the whole sample, all four indices of economic freedom significantly affect the excess returns of real estate securities. Higher investment freedom increases the excess returns of real estate securities, while the other three sub-indices of economic freedom (trade, monetary, and financial freedom) correlate negatively to the returns. Second, a firm’s market capitalization correlates negatively to the excess returns of real estate securities in both income-level groups, but there are different effects of the other two variables of firm-specific characteristics, market-to-book ratio and trading volume, in the two income-level groups. In the high-income economies, the market-to-book ratio’s effect is negative and the trading volume’s effect is positive, but their effects present converse impacts on the excess returns of real estate securities in the middle-level economies. Third and finally, higher monetary and trade freedoms reduce the excess returns of real estate securities in both income-level groups, but the effect of trade freedom is insignificant in the high-income group. In the middle-income group, higher investment freedom significantly decreases the excess returns of real estate securities, but the effect of financial freedom is insignificant. Conversely, in the high-income group, financial freedom significantly and negatively correlates to the excess returns of real estate securities, but the effect of investment freedom is unimportant."
View the Full Paper

AUTHOR: Shanaka Herath, Ajith Jayasekare
TITLE: "City Proximity, Travel Modes And House Prices: The Tale Of Three Cities In Sydney" |Refereed|
KEYWORDS: "Euclidean distance, road-network distance, overland distance, house price, travel mode, spatial econometrics"
ABSTRACT: "House prices are partly explained by proximity to the urban centre. Generally, for simplicity, proximity to the urban centre is measured via straight-line distance (i.e. the distance ‘as the crow flies’). However, distance between two points in space can be mainly conceptualised in three ways – straight-line distance, road-network distance and overland distance. Therefore, the particular distance measure that portrays ‘reality’ as closely as possible in a given study is context-specific. We examine implications of using different measures of distance on house price analyses using a dataset for Sydney. Spatial econometric techniques provide a mechanism to compare different distance measures in a robust manner. The disaggregated analysis of three regions in the city confirms distinct distance metrics exhibit different effects on house prices. Improving the modelling procedure taking into account the local context leads to the accurate measurement of ‘city centre effects’, informing policy makers on the actual extent of house price decline with an additional km of distance from the city centre. A separate section links these findings to prevalent travel modes in different parts of Sydney, and it suggests there seem to be three different cities in Sydney in terms of residents’ preferred travel modes and their willingness to pay for ‘proximity to the city centre’. Whilst revealing how residents’ preferences for transport modes are reflected in house prices, these applications can guide in planning transport infrastructure projects (e.g. roads, highways and walking paths), establishing speed limits and in improving public transport efficiency."
View the Full Paper

AUTHOR: X.X. Liu, X.J. Ge
TITLE: Effects Of Land Incremental Value Allocation On Rural Operational Construction Land (Rocl) Under Market Mechanism: Case Study In China |Refereed|
KEYWORDS: "property right, land-rent theory, rural collective construction land, land incremental value, share ownership quantification model, China"
ABSTRACT: "The use of the market mechanism to convert the rural operational construction land (ROCL) into urban construction land without ownership changes is currently being introduced into reform pilot projects in China, changing the only form of governmental expropriation in the past. The new system allows rural collective economic organizations and members of the rural collective economy to directly participate in the allocation of land incremental value increases due to changes in land use. This replaces the previous way of allocating only the original use compensation from the government. This paper investigates the collectively owned new system, to establish the positive effects and shortcoming of the new model. Three cases are applied for the analysis using inductive-deductive reasoning methodology based on the property right and land-rent theories. We have found that local government land adjustment charges on the transactions of rural construction land are suggested to be from 16 to 20 percent. The share ownership quantification model (SOQM) of land incremental value allocation between the collective economic organizations and members is effective and beneficial to the development of the rural collective economy and its members"
View the Full Paper

AUTHOR: Jyh-Bang Jou,Tan Lee
TITLE: The Determinants Of Optimal Statute Of Limitations For Landowners |Refereed|
KEYWORDS: "adverse possession, ownership risk, real options, squatting, uncertainty"
ABSTRACT: "In a recording title system a landowner faces two risks: the risk of a claim from a previously dispossessed owner and the risk of being dispossessed by adverse possession, squatting, or encroachment. In this study, we build a real options model to investigate the determinants of optimal statute of limitations, which balances the cost of receiving the claim from a past dispossessed owner more frequently against the benefit from less effort needed to expel squatters resulting from a longer statute of limitations. We find that a longer statute of limitations delays land development rather than speeds up (Miceli et al., 2003) or exhibits no effect (Baker et al., 2001). In addition, we find that a landowner will postpone development when the urban rents become more volatile. Consequently, the regulator should shorten the statute of limitations so as to reduce the likelihood for the landowner to be adversely possessed."
View the Full Paper

AUTHOR: Ian Clarkson, Koorosh Gharehbaghi
TITLE: Transportation Infrastructure Development For Regional Areas: Implications For Regions |Refereed|
KEYWORDS: "Regional, Transportation Infrastructure, Regional Development, Regional strategic alignment"
ABSTRACT: "Traditional urban development is perceived to important for the expansion of major economies. While urban centres are the main source of economic activities, the regional areas also perform a significant role in aiding the nation's economy. Nonetheless, transportation infrastructure for regional areas is seemingly less important and thus is neglected. Globally, governments contend that their highest priorities are necessary for the ever expanding cities and their subsequent urban metropolis. However, more recently, governments have announced the development or upgrade of significant transportation infrastructure for regional areas. Not only would such a decision enhance the nation holistically, but ultimately it may also further benefit the surrounding regions. It has generally been implied that the benefits of such development outweigh the drawbacks; however, such a proposition is usually developed on a case-by-case basis. A key strategy of transportation infrastructure development in regional areas is the concept of nation building schemes or the like. As the basis of the Australian Nation building program, approximately eight billion Australian dollars will be committed to building an inland transportation infrastructure freight rail line from Melbourne to Brisbane. This inland rail project will instigate a new benchmark for long haul freight competencies, which will increase the efficiency and reliability of inland rail systems. Moreover, the proposed Melbourne and Brisbane rail project will service the export of agricultural and mineral resources from remote regions. This paper will adopt the case study methodology to investigate the Inland Rail Transportation system linking the Melbourne and Brisbane ports. In doing so, the implications for the regions adjoining this project will be explored"
View the Full Paper

AUTHOR: Steven Boyd
TITLE: Capturing The Value Of An Electric Linear Ferry Service |Refereed|
KEYWORDS: "Value capture, transport infrastructure, electric linear ferry, land tax"
ABSTRACT: "The Noosa River Glider is a public transport solution to enable a modal shift from car based transport between Noosa riverside business centres. By making riverside business centres more accessible there will be a measurable increase in visitation, trade and economic worth. Through innovative taxation strategies these increases may support the ongoing operation of an electric linear ferry service. The problem relates to how the value of the proposed ferry service is captured and applied to offset capital and operating expenses. A new system of taxation, or levy, may be acceptable to riverside traders, in expectation of increased in trade. The same cannot be said for the broader community, many of who may not see increases in visitation, trade and economic worth as positive outcomes for their region. This research commences with a review of value capture approaches to fund infrastructure projects in Australia. The investigation extends to consider the Land Value Tax technique and its applicability to the current taxation and rating schemes in the Noosa shire. Subsequent modelling demonstrates how land value increases are passively recaptured through existing Queensland Land Tax mechanisms. The impact and recovery of initial infrastructure expenditure related to the NRG service is then evaluated with the aid of cash flow analysis. Emerging findings support the Henry Tax Review assertion that well-structured taxes on land and natural resources are a highly efficient means of raising revenue."
View the Full Paper