Proceedings from the PRRES Conference - 2005
ELEVENTH ANNUAL CONFERENCE 
 
SUNDAY 23rd TO Thursday 27th JANUARY 2005
Melbourne University, Australia


Delegate Papers  - Including Keywords and Abstract

Papers shown as |Refereed| have been refereed through a peer review process involving an expert international board of referees headed by Associate Professor Greg Schwann from the University of Melbourne.  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: Hera Antoniades And Dr. Garrick Small
TITLE: Revising The Conceptual Basis Of Price: A Discussion Paper On The Impacts For Residential Agency Agreements
KEYWORDS: "Ethical Pricing, Sociology Of Price, Price Theory, Economic Methodology"
ABSTRACT: "Under the Property Stock and Business Agents Act 2002, and the 2003 Regulations to the act, there is an obligation on agents to set a realistic selling price for residential property. This can create a tension for agents, when faced with winning a listing for sale. The question of how accurately an agent or salesperson can estimate price, and under what conditions raises important questions regarding the nature and sociology of price. This paper critiques various theories of price in the light of the probability of a residential property sale in practice. The market theory of price is found to have significant practical shortcomings. It is argued that other interpretations may be more successful in understanding the 1 sociology of price. In particular, it is argued that a revised methodology should be considered in order to push our understanding of property pricing forward."
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AUTHOR: Bjornlund, H. And O?Callaghan, B.
TITLE: Implicit Values And Explicit Prices Of Water ? Do They Converge? |Refereed|
KEYWORDS:
ABSTRACT: "This paper reviews the historic relationship between the explicit market price of water entitlements and the implicit value of water when attached to land. Hedonic functions are applied to 246 farm sales during 2001?02 in the Greater Shepparton, Campaspe and Moira areas of northern Victoria in order to establish the implicit value of water. These implicit values are then compared to explicit prices paid for water entitlements during the same period. A longitudinal analysis of this relationship is then conducted based on a similar analysis from the same region during the 1991?93 and 1994?96 periods It was fund that during the early to mid 1990?s the explicit price of water entitlements lagged implicit values as farmers sold unused water, which would not compromise the productive capacity of their farms. In 1997, events occurred to push the explicit price above the implicit value during the 1994?96 periods. Due to a prolonged and increasingly intense drought the explicit price of water entitlements significantly exceeded the implicit value of water from mid 2002. This has caused an increase in land transactions, with the intention of subsequently selling the attached water entitlements in order to profit from this emerging price gap."
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AUTHOR: Bjornlund, H. And Rossini, P.
TITLE: Tracing Evidence Of Rational Investor Behavior In Water Markets |Refereed|
KEYWORDS: "Water Markets, Water As Investment, Return On Water"
ABSTRACT: "This paper analysis prices paid for water allocations and water entitlements and the relationship between the two prices in order to establish evidence of rational behavior in water markets. The analyses show some evidence that prices reflect economic fundamentals. However, the major factors influencing the prices paid for water by irrigators are the allocation level at the time of purchase and the evaporation factor. The allocation level determines how much water existing irrigators will have to buy to maintain production, and it thereby determines the competition for water in the market, while the evaporation level determines how much water irrigators need in addition to the water needs of their crops. Prices of water entitlements are also strongly influenced by the price of water allocations, as economic theory would suggest. Analyzing the relationship between allocation and entitlements prices shows a strong relationship between the movements in the price of the two products. However, the price of water allocations fluctuates far more than the price of water entitlements since allocation prices reflect short-term fluctuations in allocation levels and climatic conditions. Irrigators seem to have a good feel for when prices of allocations are exceptionally low or exceptionally high and do not therefore capitalize such extremes into the value of water entitlements. Finally, cash flow analysis suggests that investors in water entitlements during the first eight years of trade would have made good returns on their purchases if they bought the entitlements with the intent of holding it for five years, and the selling the allocations each season. Returns for such investments seem to be between 15% and 25% per annum."
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AUTHOR: Terry Boyd
TITLE: Stakeholder Impact On Property Education Programs
KEYWORDS: "Online Learning, Behavioural Studies, Industry-Linked, Integration, Market Analysis, Problembased Learning"
ABSTRACT: "This paper examines the forces of change currently impacting on property education and describes the probable resultant changes in the delivery and content of existing property education programs over the next decade. Over the past few years several surveys of property education stakeholders have been undertaken internationally and this literature is reviewed at the commencement of his paper. The current and anticipated demands of the different stakeholders, in particular the employers, students and professional associations, are categorised and evaluated in the paper. In addition the current pressures on property courses within Australian Universities are superimposed on this situation. Probable responses to stakeholder demands are evaluated in the light of current educational trends. Based on these demands and responses, future paradigm shifts are considered. The probable, major impacts include a multi-media, client-driven learning environment, different foci in the curriculum and the primacy of professional upgrade education. These issues are elaborated on in the final part of this paper."
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AUTHOR: Terry Boyd And Philip Kimmet
TITLE: The Triple Bottom Line Approach To Property Performance Evaluation |Refereed|
KEYWORDS: "Social Indicators, Efficiency, Environmental Benchmarks, Evaluation, Cultural Issues"
ABSTRACT: "The utility of enclosed space is the basic performance measure for built assets. Historically these assets have been assessed on the ability of the occupier to pay for the space, resulting in an expression of the financial return from the investment. This concept is being expanded today by astute investors who are taking account of longer-term considerations, and, in particular, the sustained optimal utility of the space. This paper is concerned with the development of triple bottom line performance benchmarks for operational built assets. Specifically it maps out the conceptual changes taking place from short-term financial agendas to longer-term economic, environmental and social considerations. While reasonable progress has been made developing environmental rating systems for building design and operation, significantly less work has been done identifying and measuring the social factors relating to built assets. With this in mind, particular emphasis is placed on the identification and measurement of the most relevant social issues. The case study research of the CRC-CI project on ?The Evaluation of the Functional Performance of Commercial Buildings? is outlined, and the complementary work of other leading researchers in this field is reviewed. Finally, avenues for further research are suggested."
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AUTHOR: Nelson Chan
TITLE: China?S Latest Constitutional Amendment On Land Acquisition Compensation Issues?Does It Offer Real Help To Farmers? |Refereed|
KEYWORDS: "Land Acquisition, Compensation Principles, Constitutional Amendment, Recommendations"
ABSTRACT: "Since China adopted an open door policy in 1978, there has been rapid development in the economy and great improvement to the livelihood of the people. The rapid development also expedites urbanisation in the country. These forces have created great demand for land to support various developments. Compulsory acquisition of farmland has become a convenient means to increase land supply. Compulsory acquisition of farmland is governed by the People Republic of China Land Management Law 1998. It also provides for the payment of compensation to dispossessed farmers. Land acquisition in recent years has encountered increasing resistance from farmers because they think the compensation is unfair and inadequate. In some cases, the resistance turns into violence. In March 2004, the Chinese Constitution was amended to address, among other issues, land acquisition compensation payment problems. This paper gives an overview of the prevailing methods of compensation for compulsory acquisition of farmland in China. It also examines the adequacy of the latest constitutional amendments that are supposed to address the problems. Recommendations for improvement are provided at conclusion."
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AUTHOR: Dr. Marcus Cieleback
TITLE: Agency Problems In Indirect Real Estate Investing |Refereed|
KEYWORDS: "Agency Problem, Indirect Real Estate Investment, Institutions, Benchmarks"
ABSTRACT: "Real estate is of increasing importance in the asset allocation of institutional investors. As direct real estate investments are very management intensive and need a great deal of market know how, institutional investors are shifting more and more of their real estate investments to indirect forms. There are two general forms of indirect real estate investing, listed and non-listed. Especially in the second case agency problems increase for the investors, as only very limited data is available to compare different investment options, there are no quick exit options and so far no benchmarks exist for this sector. The paper highlights the different forms of agency problems in indirect real estate investing and shows how institutions, like corporate governance and INREV, are able to alleviate these problems."
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AUTHOR: Les Coleman
TITLE: Safe As Houses? Business Risk In Real Estate Investment |Refereed|
KEYWORDS:
ABSTRACT: "The financial and systematic risks of investing in real estate are well-covered in applications of modern portfolio theory. However, real estate assets and their associated markets have a number of idiosyncratic characteristics that give them unique risks that are not amenable to elimination through diversification. These are business risks arising out of real estate markets, and commercial and financial aspects of real estate ownership. They arise from multiple inefficiencies in the market, and share a common thread of inadequate knowledge that requires real estate investors to expend considerable effort on investment strategy, market assessment, property evaluation, and other due diligence processes. This paper examines the sources and consequences of business risks in real estate investment, and points to strategies for their management. implications and management."
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AUTHOR: Greg Costello
TITLE: Trading Rules In Housing Markets - What Can We Learn?
KEYWORDS:
ABSTRACT: "This paper examines the application of trading rules in testing informational efficiency in housing markets. Since the seminal work of Linneman (1986) there have been substantial advances in the volume and quality of data available to test information diffusion processes within housing markets. Given the sophistication of current data sources, it is surprising that there has not been more applied research in this field. The paper reviews and extends the work of Linneman (1986) and Londerville (1998) to an empirical analysis of Western Australian housing data. Whereas most previous studies have focused upon hedonic methods to predict future house prices, this study also incorporates repeat-sales data so that predicted and actual selling prices of individual properties are available for analysis. The results support the view that idiosyncratic information diffusion processes exist within housing markets. These processes are influenced by levels of aggregation within the data across spatial regions."
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AUTHOR: Marsha J. Courchane, Douglas Mcmanus And Peter M. Zorn
TITLE: An Analysis Of Mortgage Closing Costs |Refereed|
KEYWORDS:
ABSTRACT: "Fair and affordable access to credit for borrowers remains an important public policy objective. While some believe that significant improvements in mortgage markets have led to more efficient and lower cost access to a greater variety of mortgage products, others believe that lending practices remain abusive over certain dimensions. Often, the abusive or predatory practices are found to be most prevalent in the subprime market. There remains significant debate, however, over the desirability of some aspects of lending behavior in the prime market as well. In this research, we focus on the use of yield spread premiums (YSPs), a payment made by the lender to a mortgage broker that is reflected in the closing costs paid by the consumer for a loan. We use data collected from a national lender. The data allow us to characterize the types of borrowers in the prime market who use yield spread premiums to finance their mortgage, to address the impact of the yield spread premium on consumer closing costs and net mortgage broker compensation, and broadly to assess market outcomes. We find that borrowers who use yield spread premiums can usefully be segmented into three types: those who finance all of their closing costs using this mechanism, those that use YSPs as part of their financing package, and those that do not incur any yield spread premium in the process. We find that those borrowers who did not use YSPs or those who paid some of their closing costs with YSPs disproportionately pay higher closing costs than did the other segments. We predict that those who paid all their closing costs using YSPs had the lowest costs. Moreover, we find that differences in the closing costs paid, either measured as out-of-pocket costs or closing costs including YSPs, cannot fully be explained by adjusting for related risk factors such as credit score and loan-to-value (LTV) ratios. It is likely that other factors such as search behavior or financial sophistication on the demand side, and the ability of the broker (or lender) to extract rents on the supply side, also affect both the incidence and severity of the impact of yield spread premiums."
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AUTHOR: Graham Crews And Sue Hovell
TITLE: Real Estate Agents And Consumer Service: The Voice Of A Busy Market
KEYWORDS: Real Estate Agency - Real Estate Agency Practice - Real Estate Consumer Research - Consumer Surveys - Property Buyer Satisfaction - Property Seller Satisfaction
ABSTRACT: "Research into consumer perceptions of the service offered by real estate agents has tended to be ad hoc and spasmodic, or conducted by organisations who regard the results as commercially sensitive. Despite high public interest and consumer group criticism about the quality and cost of services offered by real estate agents, consumer research findings are seldom released into the public arena. One notable exception has been the residential consumer research conducted for the Real Estate Institute of New Zealand at regular intervals over the past decade. A random selection of recent buyers and sellers were mail surveyed and asked to provide opinions about the quality and cost of services offered to them by real estate agents with whom they had contact during their purchase/sale transaction. Surveys have been conducted every three years since 1990, and again in 2003 (five in total). The 2003 survey, based on an identical sample frame used in 2000, was based on a random selection of 4500 recent users of residential real estate services in the cities of Auckland, Christchurch and Dunedin, and the provincial regions of Wanganui/Manawatu and Waikato/Bay of Plenty/Gisborne. The findings are published by the Institute and attract considerable interest from real estate practitioners, academics and the public at large. This paper examines and discusses the findings of the latest survey and also explores comparisons with findings from the previous four surveys. Interestingly, the 2003 survey was conducted in a very busy market and the findings have also been examined from that perspective."
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AUTHOR: amonn D'Arcy
TITLE: Market-Making In The Real Estate Market: The Case Of Real Estate Services
KEYWORDS: "Economics Of Information, Real Estate Services, Market-Making"
ABSTRACT: This paper builds on previous work by the author which examined the real estate market as an information system. Within this framework market institutions are viewed as a rational response to information costs both collection and communication and the potential for information asymmetries. Intermediation takes place through specialised market-makers who collect and communicate information and structure information flows. Such actives become an important source of value added and have the key objective of reducing information costs through the creation of an information synthesis. Within this framework the real estate market is examined and the role of real estate service providers as market-makers assessed.
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AUTHOR: William Dimovski And Robert Brooks
TITLE: The Gender Composition Of Boards Of Property Trust Ipos. |Refereed|
KEYWORDS: "Women Directors, Corporate Governance, Gender, Boards Of Directors, IPOs"
ABSTRACT: This paper follows Dimovski and Brooks (2004) which identified a relatively low proportion of female directors on the boards of Australian mining and industrial company initial public offerings (IPOs). This study investigates the gender composition of the boards of directors of Australian property trust IPOs from 1994 to 1999. We find that property trust IPOs in Australia generally do not require female directors for the capital raising. We also find that larger IPOs tend to engage more women directors but that retail property trust IPOs tend to engage fewer women directors.
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AUTHOR: Peter Elliott And Clive M J Warren
TITLE: "The Valuation Profession In Australia: Profile, Analysis And Future Directions"
KEYWORDS:
ABSTRACT: "Like many professions and industries the valuation profession is experiencing a more competitive environment. There is a need to establish where the valuation profession is going and, by definition, where it is now, for strategic planning purposes at both the profession and corporate level. This paper analyses the issues facing the profession in Australia and uses Michael Porter?s conceptual framework of ?How Competitive Forces Shape Strategy.? to better understand these issues and the direction the industry might take to succeed in an uncertain world. It is suggested that such an analysis could assist the strategic planning of major industry groups including API, RICS, as well as providing a basis for the Universities to consider the needs of the profession in the future."
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AUTHOR: Liz Everist, Valerie Francis And Lynne Armitage
TITLE: Career Mentoring: Preferences Of Undergraduate Property And Construction Students
KEYWORDS: "Mentoring, Career, Tertiary Education, Property And Construction."
ABSTRACT: "Although career mentoring is well established across many professional areas its application in the field of property and construction is at an emergent stage. More specifically in the higher education field in Australia there appears to be a dearth of empirical study. As part of ongoing quality review aimed at enhancing student engagement with their educational program, a questionnaire survey was undertaken among first and second year students enrolled in the Faculty of Architecture, Building and Planning?s Bachelor of Planning and Design (Property and Construction). The study investigated student preferences regarding involvement in a career mentoring program including mentoring program options and mentoring style preferences. Several interesting differences emerged between property and construction student cohorts and in particular between male and female students. The findings demonstrate the importance of examining mentoring preferences from the perspective of the mentee. The paper concludes with a discussion of the implications of these results providing insights for others involved with tertiary programs in the built environment."
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AUTHOR: Susan Flint-Hartle
TITLE: Towards Understanding Real Estate Franchises In Australasia
KEYWORDS:
ABSTRACT: "This paper describes phase 1 of an ongoing study that explores the influence of business format franchising in the real estate agency sector in New Zealand and Australia. Using a multi stage methodology, that initially draws data from the narratives of principal directors and owners in two major franchisor organisations; the study investigates perceptions and experiences of building a franchised network. The initial results help explain why franchising continues to develop into a widespread, organisational business form in the real estate industry. Initial analyses highlights four key industry specific antecedents for the growth of franchising; individual business ownership; a rejuvenating process of acculturation; market share development and a division of responsibilities and core competencies that leads to business focus and the growth of parallel, co-dependent businesses that comprise real estate franchise systems. This pilot study precedes a wider exploration of real estate franchisors from four focal points and includes in depth case studies and quantitative survey of real estate franchise systems in Australia and New Zealand."
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AUTHOR: Raewyn Fortes
TITLE: Compensation Models For Native Title
KEYWORDS: "Indigenous Property Rights, Native Title, Compensation Model"
ABSTRACT: "This paper studies case law precedent in terms of compensation particularly for native title. While a clear precedent has recently been set in Australia in the Mabo (Mabo and ors v The State of Queensland (1992) 175 CLR 1) case, there is still not one compensatory model adequate for native title. Each case needs to be assessed on its own merits and varying types of compensation awarded accordingly."
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AUTHOR: Evan Gamby, Paul Bendall And Allan Smee
TITLE: A Model For Valuing Subdivision Development Land
KEYWORDS:
ABSTRACT: "The total return required to compensate an investor for undertaking land development involves risk/return tradeoff analysis. The problem is that in the absence of a volume of comparable sales, existing methods-- particularly the hypothetical subdivisional budget formula method or hyposub-- concentrate on the determination of residual land value, utilising subjectively derived single figure profit and risk and/or discount rates. The investor/developer determines price based on expected return, both total and equity; the financier is interested in risk exposure during the subdivision process; the valuer assesses residual value"
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AUTHOR: Evan Gamby And Pamela Reid
TITLE: Gold Mining ? Environmental Stigma Or Property Value Enhancement
KEYWORDS: "Gold Mining, Environmental Stigma, Valuation Case Study, Value Enhancement, ?Valenhance?, Betterment, New Zealand."
ABSTRACT: "Waihi Gold Company has been operating the Martha mine at Waihi, New Zealand since 1987, firstly under a licence approved on 16 July 1987, issued under the Mining Act 1971 and then under an extension granted in 1998 by the Environment Court, approved under the Resource Management Act 1991. Surface mining activities at Martha are due to cease in 2007. An application for underground mining known as Favona Project at Waihi is in the final stages of approval. That application is to extend mining activities at Waihi until 2015. Opponents to mining activities, particularly surface mining at Martha, have argued a decrease in property values as a result of environmental stigma, among other adverse environmental effects. Case study research on comparative residential property sales activity was undertaken to test the veracity of opponents? claims that real estate property values have been influenced by environmental stigma."
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AUTHOR: Bob Hargreaves
TITLE: Exploring The Yields On Residential Investment Property |Refereed|
KEYWORDS: "Gross Yield, Residential Rental Property, New Zealand"
ABSTRACT: "Over the last 3 years a considerable amount of investor attention has been directed to residential investment property. This paper reports the results of a comprehensive survey of residential landlords covering 1585 New Zealand rental properties. Information on the income and expenditure patterns from houses, flats and apartments was analysed to derive the gross and net yields, the capital gains being achieved, and the total returns over the holding period. The paper then goes on to use multiple regression analysis to further explore the relationship between gross income and value for a selection of rental apartments and rental flats."
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AUTHOR: Abdul Hassan
TITLE: A Preliminary Study On The Supply Of Low Cost Housing In Fiji
KEYWORDS: "Low Cost Housing, Development, Constraints, Fiji."
ABSTRACT: "This paper provides an overview of the status of low cost housing supply in Fiji. It identifies the reasons for the shortages of housing particularly in the urban centres. A number of housing policies created by the government has not improved the situation. The provision of infrastructure, the regulation of land and housing development, the organisation of the construction and material industry, and the involvement of the sectors in building and construction all have achieved little success. Policies such as security of tenure for housing land and the ability to use it as an asset also affects the quantity of housing. Investigation of all these factors is needed as they heavily influence the cost, quality and production of affordable housing, which accommodates most of the low-income population in urban areas. Using Suva City as the major study area this paper looks into the issues that have inhibited the development of hous ing in urban centres. Analysing the data collected, using graphs and charts the major obstacles to housing development are identified and highlighted."
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AUTHOR: Johan Hedander
TITLE: "Focus, Liquidity And Firm Value: An Empirical Study Of Listed Property Trusts In Australia"
KEYWORDS: "Lpts, Herfindahl Index, Market-To-Nta, Dollar Trading Volume, Australia."
ABSTRACT: "The relationship between corporate focus and firm value is frequently discussed in the financial literature. Most often, focused companies are valued at a premium in comparison to diversified firms. In this study, focus within a single line of business, rather than across multiple businesses, is analysed. An unbalanced panel dataset covering 39 Australian nonstapled Listed Property Trusts (LPTs) from 1992 through 2003 are observed. Focus over property type (retail, office, industrial and hotel) are significantly positive related to LPT value, while the corresponding connection measured over geographical regions are negative. After dividing the time period into two sub-periods (a) 1992-1997 and (b) 1998-2003, the significance disappears for property type focus but remains for focus over regions. These relationships remain after controlling for share market liquidity, with dollar trading volume used as a proxy."
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AUTHOR: Chris Heywood, Dr Greg Missingham And Prof Russell Kenley
TITLE: Ownership And Community Assets: Managing Change Processes In Strategic Local Government Corporate Property Management
KEYWORDS: "Change Management, Corporate Real Estate, Local Government, Perceptions, Facilities."
ABSTRACT: "Replacing and upgrading community assets raises issues of perceptions of ?ownership? of facilities. Strategic local government Corporate Property management aims to meet organisational objectives, not necessarily those of vested sectional interests. Being corporate suggests the development of multi-purpose facilities to replace outdated existing single purpose facilities. Such proposals challenge ?ownership? perceptions based on the old facilities, and create opportunities to shape different senses of ?ownership? for the new facility. This paper discusses the issues of ?ownership? within the context of a new multi-purpose Library-Community Centre. Three forms of ?bad? ownership are identified. ?Good? ownership also has three aspects that are desirable for the organisation, tenant groups and the wider community Processes used in managing these changes in ?ownership? are elaborated. As the project is not due for occupation until mid-2005, this research investigates only the project?s pre-design and design phase processes. ?Ownership in-use? of this community asset must be future research."
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AUTHOR: Steven C. Bourassa, Martin Hoesli And Jian Sun
TITLE: A Simple Alternative House Price Index
KEYWORDS: House Price Indexes
ABSTRACT: "This paper presents the Sale Price Appraisal Ratio (SPAR) method for constructing house price indexes. The method, which uses ratios of transaction prices and previous appraised values to build up an index, has been applied since the early 1960s to produce semi-annual price indexes for regions and cities in New Zealand. We compare the official New Zealand indexes for three urban areas with repeat sales and hedonic indexes created from the same transactions data, and observe that the SPAR method produces an index very much like those produced by hedonic methods. Given the number of advantages and few disadvantages that we find for the SPAR method relative to the more traditional methods, we maintain that it should be considered by government agencies elsewhere when developing house price indexes."
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AUTHOR: Simon Huston, Jung Hoon Han And Tan Yigitcanlar
TITLE: Urban Structure And Change In Brisbane: Exploring Locations For Property Price Premiums
KEYWORDS: "Premium, Information, Risk, Urban Structure, Structural Change, Symbolic Analysts"
ABSTRACT: "Understanding the dynamics of price premiums is important for property developers, Valuers and investors. This paper assumes two types premium are relevant. First a premium based on current neighbourhood quality and second one based on the conjectured future evolution of neighbourhood quality. Premium neighbourhood quality fundamentals are geospatial. However, neighbourhood information price premiums can become divorced from these geospatial drivers. Property market players may nevertheless use change in urban structure as an indicators of information premium location. We clarify the premium concept and suggest indicators of current and future quality derived from the gentrification literature. Using Census data from metropolitan Brisbane, we first isolate current quality premiums or ?dress circle? suburbs and then analyse selected suburbs which underwent structural change from 1991 to 2001. Although we found evidence that urban structural change may provide information to indicate the location of evolving price premiums, current urban structure is the dominant determinant of prices."
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AUTHOR: Rodney L Jefferies
TITLE: Valuing Ground Rentals ? Modelling The Land Value Percentage Rate
KEYWORDS: Ground Leases -? Ground Rental Valuation ? Land Value ? Rental Percentage ? Leasehold Investment Returns ? Leasehold V Freehold Investment
ABSTRACT: Ground rentals are commonly valued by applying a ?ground rental rate? as a percentage per annum to an assessed vacant land value. This paper presents a ground rental valuation model to determine the appropriate ?ground rental rate? based on equating the long-term costs of building on leasehold land versus freehold land. The model solves for a ground rental that produces equivalent net present values at differential freeholder?s and lessee?s required investment returns. These returns reflect the different risks and returns in ground leasing compared to outlaying capital to buy land for erecting a building as an investment property.
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AUTHOR: Associate Professor Angelo Karantonis
TITLE: "Risk Free Profit From Property ? The Government, The Risk Free Partner." |Refereed|
KEYWORDS: "Property Development, Property Taxation, Taxation, Profit."
ABSTRACT: "Property is an asset that can be taxed in several ways, because it is both a capital good and consumption good. Accordingly, governments at all levels have endeavoured to impose taxes and/or fees and charges on property. The recently introduced ?exit? tax for property investors in NSW has once again highlighted the vulnerability that property as an asset suffers at the hands of government. In the NSW budget papers for the 2004-2005 financial year, total property taxation accounted for 36.7% or $5,700 million of total State Government revenue. This included Stamp Duty ($3,190 million), Vendor Transfer Duty ($690million), Mortgage Duty ($372 million) and Land Tax ($1,448 million). In addition to state taxes, property is also taxed in several ways at the local and federal government levels. That is, the three tiers of government profit from property investors, irrespective of whether individual investors and developers make a profit or not. This paper will examine the impact of the combined current taxation and fees of the three tiers of government associated with property investment in NSW. In addition, using case studies, the paper will derive the percentage level of the overall ?risk free? profit by government instrumentalities from private property developments in NSW."
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AUTHOR: Tom Kauko
TITLE: The Budapest Housing Market Structure From A Heterodox Economics Perspective And With A Neural Network Classification |Refereed|
KEYWORDS: "Budapest, Housing, Pricing Mechanism, Neural Networks."
ABSTRACT: "The development of the housing markets in different European metropolitan areas is of high interest for the urban development and the real estate markets, which are about to globalise. What sort of pricing mechanism is able to explain the house prices in different areas? The Budapest housing market is well-suited for scrutiny from an institutional and evolutionary perspective. The housing market is very fragmented with respect to location; several different house types, age-categories and price-levels, as well as micro-locations, are to be found side by side. It is an extremely patchy and multi-faceted setting, and running the data with neural network modelling techniques, namely the self-organizing map (the SOM) and the learning vector quantification (the LVQ), together with conducting the conceptual level analysis using a heterodox economics framework and some qualitative material, sheds some light about the systematic to the degree the market is affected by physical and sociodemographic characteristics, price and regulation."
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AUTHOR: Jinu Kim
TITLE: The Performance Indicator Of Industrial Property Market Based On The Location Factors |Refereed|
KEYWORDS: "Industrial Property Market, Land Values, Location Factors, Performance Indicator"
ABSTRACT: "The theoretical model of this study predicts that the values of typical industrial sites are a function of economics factors and location factors. The industrial land values of typical industrial sites in Sydney region between 1976 and 2003 were collected from the New South Wales Valuer General?s Office (VGO). In order to control the economic factors, series of the regression analysis within same year (snap?shot analysis) were used. The study used the regression analysis with the dependent variable of industrial land value and the independent variable of distance from CBD in terms of the location factors, in order to estimate the Central Industrial Land Value (CILV) and industrial land value reduction per kilometre (Slope). There are higher CILV and steep Slope during the growing market, while there are lower CILV and soft Slope during the decreasing market. After comparison with other performance indicators, the movement of the CILV based on the location factors may predict the turning points of the performance of Sydney industrial land values."
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AUTHOR: Stephan Kippes
TITLE: Comparison Of The Calculation Of Habitable Dwelling Surfaces
KEYWORDS: Real Estate Companies ? Developers - Habitable Dwelling Surfaces - Surface Calculation - Stakeholders - Dwelling Surface - Reproducibility Of Calculated Surfaces - German Industry Standard Din 277
ABSTRACT: "For a long time already it is criticised in Germany ? namely by end consumers ? that the entire field of the calculation of habitable dwelling surface is characterised by a chaotic variety of calculation variants hardly comprehensible for the end user - sometimes not even reproducible for the expert. In fact, the result of the jurisprudence of the Federal Court of Justice is that the term ?dwelling surface? has to be interpreted on the basis of common language1. In this context it is striking that a lot of legal disputes turn around the existence of a certain dwelling surface and considerable deviations which, as a consequence, justifie a claim for damages2. It is generally not clearly determined yet what is actually constituting the basis for such a calculation of the habitable surface of dwellings.3 Therefore, a certain number of dossiers has been analysed on the basis of a random choice in order to determine the method according to which the habitable dwelling surface was determined, what is actually considered as ?habitable? and in how far different calculation methods result in deviations."
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AUTHOR: Valerie Kupke, Wayne Marano, Peter Rossini And Paul Kershaw
TITLE: Survey Of Investors In The Private Rental Market In South Australia |Refereed|
KEYWORDS: "Rental Housing, Housing Market, Investment"
ABSTRACT: "Private rental housing in Australia is provided by a diverse group of property owners ranging from householders to non-profit institutions, employers and corporations. However the largest group of providers is made up of private households who supply some 60 percent of all rental accommodation. This investor mix is matched against what has been quantified as a shrinking supply of low cost private rental housing in Australia. Sustained government withdrawal from the public rental sector and the lack of enthusiasm from the large commercial sector ensures that these small investors, that is household or family, will continue to supply significant levels of rental housing including the low cost properties This paper is based on a project funded by the Australian Research Council into the supply side of the private rental housing market in Adelaide the state capital of South Australia. The project aimed to develop a better understanding of the incentives and barriers to investment in this market in order to increase the level of investment particularly at the low cost end. The project sought to assess the incentives for investment by first examining the yields and returns from some 1000 properties bought for investment between January 1997 and March 2002. Secondly by surveying a sample of investors who had bought within the same period and whose properties are represented in the analysis of returns. This paper reports on the survey of investors."
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AUTHOR: Arnold W L Kwok And Clive M J Warren
TITLE: Optimisation Of Performance In Facilities Management
KEYWORDS: "Facilities Management, Built Environments, Stakeholder Relations And Facility Performance, Facility Conditions And Building Types, Best Practice And Best Match Approaches"
ABSTRACT: "Facilities management and corporate real estate provision are becoming increasingly important to business success. Its trend follows the changing orientations of the built environment which includes commercial, educational, industrial, recreational, residential, retail and transport infrastructures. It also directly contributes to the success of business with its focus on consistency, continuous improvement, and reliability through time, cost and quality control. Thus, the study of facilities management in each sector of the built environments is essential to optimise business performance. This paper discusses stakeholder relations and facility performance. It considers complex facility conditions in relation to daily business operation and searches for a suitable built environment in order to demonstrate further performance measurement. In addition to the common benchmarking techniques or best practice in facilities management, the paper also introduces a best match approach for management teams to benchmark among stakeholders. Finally, it discuses the pros and cons between the best match and the best practice approaches in business performance optimisation."
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AUTHOR: Ming-Long Lee And Ming-Te Lee
TITLE: Corporate Real Estate Sales And Agency Costs Of Managerial Discretion
KEYWORDS: "Asset Sales, Agency Cost, Real Estate, Corporate Finance, Taiwan"
ABSTRACT: "This study contributes to the literature on corporate real estate sales by examining the financing hypothesis of Lang, Poulsen, and Stulz (1995). We exploit the concept that institutional investor involvement and debt obligations lead to effective monitoring of managers, compelling them to take value-maximizing decisions and thus reducing the degree of agency costs of managerial discretion. We show that the stock market responds more favorably to arm?s-length corporate real estate sales by low agency-cost firm-years than those by high agency-cost firm-years. The result supports the financing hypothesis that implies a negative relation between stock market responses to asset sales and degrees of agency costs."
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AUTHOR: Ming-Long Lee, Ming-Te Lee And Kevin C.H. Chiang
TITLE: Real Estate Risk Exposure Of Equity Real Estate Investment Trusts
KEYWORDS: "Reit, Real Estate, Asset Pricing, Real Estate Factor"
ABSTRACT: "Gloscock, Lu, and So, (2000) show that equity REITs behave more like stocks after 1992. However Clayton and Mackinnon (2003) provide evidence demonstrating that equity REITs become more akin to real estate and less like stocks. Facing the seemingly contradicting evidence produced by the two studies, we extend Hsieh and Peterson (2000) and He (2002) to examine the real estate risk exposure of equity REITs. Contrary to Clayton and Mackinnon?s (2003) study, our results do not support that equity REITs are more like real estate after 1992. Our results appear to consistent with Graff and Young (1997) who conclude that the increased institutional interest has caused REIT return behavior to diverge from the returns on underlying REIT property portfolios."
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AUTHOR: Peter Li And Angelo Karantonis
TITLE: Boom Or Gloom: A Comparative Study Of The Propensity Of First Home Buyers In Beijing And Shanghai |Refereed|
KEYWORDS: "First Home Buyers, Affordability, Beijing, Shanghai, China"
ABSTRACT: "This paper seeks to contribute to a better understanding of the propensity of first home buyers in Beijing and Shanghai in urban China. Under planned economy since 1949, housing was provided by the State through the danwei or ?work unit? organizations at monthly rental of about 1-3 % of the household income. However, little revenue could be generated from such low rental, resulting in poorly maintained buildings and insufficient housing investment by the government. To tackle the severe housing shortage problem, urban housing reform was introduced in 1988. The objectives of the housing reform were privatization and commercialization of housing. The focus was on affordable housing, like the Anju (comfortable) housing project for ordinary households. By way of background, this paper will present an overview of the property markets in urban Beijing and urban Shanghai since 1988. Although a lot has been researched in the housing reforms, housing preferences and housing inequalities, there has been very little research into the home owning propensities of first home buyers (FHB) in China. Based on data collected in Beijing and Shanghai in Autumn 2004, this paper will aim to test the hypothesis that the higher the total incomes of FHB, the higher the level of buying an apartment or house. Qualitative method will be used, with over 50 in-depth interviews conducted in each of the two cities studied. For deeper understanding of their homeownership propensities, descriptive data of the interviewees was analysed under five categories, namely: the socio-demographic characteristics; income levels; housing choice; mode of finance; and impact of government policies to assist FHB. The data was then transcribed, summarized and processed using a spreadsheet. The interview results appear to support the hypothesis that fulfilling the homeownership dreams for first home buyers is the result of affordability."
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AUTHOR: Ric Lombardo, John Flaherty And Victor Fang
TITLE: The Appropriate Efficiency Frontier For The Lpt Sector ? An Explorative Study
KEYWORDS: "Downside Risk, Semi-Variance, Efficiency Frontier, Lpt Sector, Portfolio Construction, Asset Weights"
ABSTRACT: Listed Property Trusts (LPTs) are an important asset class for creating wealth. The dynamics of the current Australian environment presents investors with greater investment challenges in deciding which securities should be included in an investor's portfolio. The validity of the standard Markowitz framework is examined in the context of the nature of the return distributions in the Australian listed property trust sector. Empirical evidence of non-normality in the return distributions raises questions regarding choices made by utility maximizing investors using the conventional Markowitz framework. A sample of Australian LPTs is used to explore the appropriateness of a semi-variance methodology in determining efficiency frontiers with that of the conventional approach. Results indicate that for the chosen sample the Markowitz approach is sub-optimal for investors that are very averse to downside risk.
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AUTHOR: Kf Man And Kw Chau
TITLE: Hong Kong Property Cycle ? A Frequency Domain Analysis
KEYWORDS: "Hong Kong Property Cycle, Spectral Analysis, Co-Movement"
ABSTRACT: "Property cycle study is a popular topic in the current real estate literature, particularly when the market is near the peak or in low ebb. In this study, some of the stylized facts of the Hong Kong property cycle will be examined and high frequency (monthly) data, partly public and partly proprietary, will be used. Spectral analysis, uni-variate and bi-variate, will be employed to investigate individual cycle and co-movements of two different cycles respectively. Aperiodic movements of price, rental and total returns for various segments of the real estate market of Hong Kong are found. This result could have important implication for the investors who are thinking of investing in real estate: on an investment horizon of several years, they can buy near the trough and sell near the peak. Co-movements of the direct (various segments) and indirect real estate are also investigated and it is found that residential market is the one that carries the greatest coherence with the indirect market. Retail and office market follow in the pack and the industrial market is least coherent one."
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AUTHOR: Kfman And Raymond Y C Tse
TITLE: The Impact Of Negative Equity Housing On Private Consumption: Hk Evidence |Refereed|
KEYWORDS: "Negative Equity Housing, Consumption, Wealth Effect"
ABSTRACT: "Housing is the most important single investment for most individual investors. Thus, negative equity of housing capital would have a major psychological impact on the homeowners through a consumption effect. This study explores the wealth effect of housing and stock markets in Hong Kong. More specifically, studies are made on how the aggregate consumption behaviour is influenced by the presence of an extended and protracted negative equity phenomenon in Hong Kong housing assets. Using annual data, our results find that there is a long-term equilibrium relationship between consumption and the wealth effect of changes in housing wealth. Furthermore this effect appears to be more significant than that associated with changes in financial wealth. Key words: Negative equity housing, consumption, wealth effect The Asian Financial Crisis marked the beginning of the prolonged fall of the Hong Kong housing market: from the all time high index set at 100 in the third quarter of 1997, according to the Centaline Housing Index, it dropped to the lowest point of about 33 in the second quarter of 2003, then surged back to around 55 in the second quarter of 2004. Concurrently with such fall in housing price is the drop in Consumer Price Index. This is the longest ever deflationary period in the post war period of Hong Kong. (This is, however, still less severe than the long deflation experienced by Japan in the nineties.) It has been argued that while the banking deposit was substantial, the collapse in consumer confidence in the direction of economy has led to a sharp decrease in private consumption. In this study, we examine how the housing wealth changes and stock wealth change affects the private consumption behaviour. This is particularly important in view of the fact that over two third of the GDP of Hong Kong comes from services sector. This paper consists for four sections: first section provides a brief literature review, section 2 discusses the data employed in this study, section 3 is about the methodology of the study, study 4 concerns the data analysis and interpretation of results and section 5 is the conclusion."
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AUTHOR: Vince Mangioni
TITLE: Residential Property Investment: Is Regulatory Change Necessary |Refereed|
KEYWORDS:
ABSTRACT: "Residential property investment has been incorporated into investment portfolio?s and retirement plans of many Australians with increasing momentum over the past 10 years. The role of real estate agents in the marketing and sale of new residential property and the legislation governing real estate agents is now under review by both State and Commonwealth Governments. As the roles of real estate agents and investment advisers / financial planners begin to blur, the introduction of appropriate legislation governing these participants along with unlicensed marketers and seminar operators needs to be introduced. A conceptual framework has been adopted to identify the key area of the divide of independence that needs to exist between investor and marketer, be they agent, financial planner or adviser, with commentary highlighting areas of concern. The evolution and status of both State (NSW) and Commonwealth regulation governing agents and advisers / planners has been considered, with perceived concerns and gaps discussed. In conclusion, an analysis of the complaints lodged with both state and commonwealth agencies, has been reviewed, with recommendations made to address the issues raised, which are currently not dealt with, or adequately dealt with under existing regulatory provisions."
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AUTHOR: Stanley Mcgreal, James R. Webb, Alastair Adair And Jim Berry
TITLE: Risk Return Profiles In The Uk Regeneration Market
KEYWORDS:
ABSTRACT: "This paper is concerned with investment returns and risk within urban renewal areas in major UK metropolitan areas. The analysis presented is by property type. The results indicate high returns for retail real estate with compelling risk return ratios. For retail property in particular, but also to a lesser extent for office and industrial, this research indicates that investment performance in regeneration areas has outperformed national and local city benchmarks. This study is significant for two reasons. First the research addresses the issue of transparency of investment returns for a sector of the market which institutions have largely by-passed, due to data deficiencies and uncertainties regarding the risk-return profile. Second the research makes a significant contribution to the policy perspective in terms of those initiatives, which are capable of stimulating large private sector capital flows into regeneration areas. Returns for regeneration property are analysed at aggregated (total returns) and disaggregated levels (income returns and appreciation returns separately) over a 22- year time period. Separation of the returns highlights the highly risky nature of capital return and the low risk bond-like income return."
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AUTHOR: Anthony Mills And Peter Williams
TITLE: Market Analysis Study Of The Value Technology Systems To Home Owners |Refereed|
KEYWORDS: "Intelligent Buildings, Building Technology, Home Automation"
ABSTRACT: "Smart Technology involves the integration of a variety of home systems including lighting, climate control, security etc. to enhance the comfort, convenience and economy of the home for its users. It is currently unknown if homebuyers believe that these systems add value to the home. This study used the market value of home sales and an attitudinal survey of homebuyers, to determine the increased value of homes containing Smart Technology. The results demonstrated that a significant price premium was paid by for the incorporation of the technology into new homes. In addition, the research suggests that the use of this technology is not limited to highincome earners or other demographic stereotypes. Instead it has broad market appeal and the potential to save energy for the community at large."
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AUTHOR: Graeme Newell And Tan Yen Keng
TITLE: Listed Property Trusts
KEYWORDS: "LPTS, Risk, International Property, Stapled Securities, Debt, Mergers And Acquisitions, Portfolio Diversification Benefits."
ABSTRACT: "The listed property trust (LPT) sector has undergone considerable change in recent years, including increased levels of international property, increased levels of debt, incorporating property development activities via use of stapled securities structures and a reduced number of LPTs via mergers and acquisitions. By analysing LPT performance over 1993-2004, the changing risk profile of LPTs is assessed. In 2003-04, there is evidence of increased levels of LPT risk, particularly in the international LPT and stapled securities LPT sectors. LPT correlations with the stockmarket have also increased. This increasing risk profile for LPTs, whilst still off a low base, sees a reduction in the traditional defensive characteristics (ie low risk) and portfolio diversification benefits of LPTs."
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AUTHOR: Graeme Newell And Tan Yen Keng
TITLE: Factors Influencing The Performance Of Listed Property Trusts
KEYWORDS: "LPTS, Multi-Factor Model, Variance Decomposition, Stocks Factor, Bond Factor, Direct Property Factor, Idiosyncratic Factor, Market Dynamics"
ABSTRACT: "A variance decomposition procedure is used to assess the proportion of LPT volatility that is attributable to stock, bond and property factors over 1985-2004. The dynamics of this LPT performance is also assessed. Property is seen to only make a small contribution to LPT variability, with the contribution of property only marginally increasing in recent years with the increased maturity of the LPT sector. The importance of stocks in LPT performance has decreased significantly, with bonds being the most dominant component in LPT performance in recent years."
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AUTHOR: Graeme Newell, Tan Yen Keng And Allan Fife
TITLE: The Significance Of Fractional Interests In Listed Property Trusts
KEYWORDS: "Fractional Interests, Co-Ownership, Lpts, Ownership Structure, Property Type, Risk Management"
ABSTRACT: "Fractional interests in commercial property have taken on increased importance as institutional investors seek to manage single-asset risk in their property portfolios. By assessing the ownership arrangements of over 8,000 commercial properties, the level of fractional interests in listed property trust (LPT) property portfolios in Australia over 1991-2004 is assessed. Significant increases in the level of fractional interests (both by number and value) have been evident in the last five years; particularly reflecting increased levels of co-owned international property in LPT portfolios and the acquisition of local landmark office and retail properties via fractional interests. Retail and office property in a 50%:50% co-ownership arrangement is the most dominant local fractional interest structure, with international properties more likely to involve more than a 50% fractional interest by the LPT."
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AUTHOR: Richard Reed And Nerida Conisbee
TITLE: Identifying Linkages Between Generations And Community Development ? The Effect On Residential And Retail Property
KEYWORDS: "Demography, Baby Boomer, Generation X, Generation Y, Generation Z, Retail Property, Residential Housing."
ABSTRACT: "In the analysis of property markets, especially the retail and residential sectors, increasing importance is being given to the role of demography. The impact of economic influences such as interest rate movements, inflation and changes in the labour market are well documented and although these variables are clearly important, they do not incorporate the changing characteristics of the local inhabitants who actually provide the demand. However, demography can provide an invaluable insight into retail and residential property trends, especially over the long term, and are assisted by reliable population datasets with a relatively high level of detail. For example, the emergence of the 'baby boom' generation shift had a substantial effect on demand for retail and housing products, although little consideration has been given to the effect from the subsequent cohorts, namely generations X, Y and Z. This paper examines the role of demography when researching property markets, with the focus placed on demographic shifts. It discusses trends in a range of demographic variables that have been observed in society. In addition, it highlights linkages with property markets, especially residential and retail property, and draws inferences for long term trends. The study concludes that when conducting research into property markets, it is essential to have a thorough understanding of various demographic variables to predict how they affect demand. An appreciation of the drivers behind generations will assist property researchers to identify future needs, and the subsequent effect this will have on community development involving retail and residential property."
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AUTHOR: Richard Reed And Hao Wu
TITLE: The Melbourne 2006 Commonwealth Games:Implications For The Local Property Market
KEYWORDS: "Commonwealth Games, Major Sporting Event, Infrastructure, Property Market, Host City."
ABSTRACT: "In 2006 Melbourne will host the 18th Commonwealth Games with Brisbane being the last Australian city to host this event over two decades ago in 1982. Melbourne has not held a major global sporting event since the 1956 Olympic Games, although the 2006 Commonwealth Games follows on from the successful 2000 Sydney Olympics. These sporting events have continued to grow from strength to strength, and have been assisted by Australia's close affiliation with sport and the widespread global media coverage. In a similar manner to other sporting events that Melbourne hosts, including the Australian Tennis Open, Formula One Grand Prix, Motorcycle Grand Prix, Melbourne Cup and Australian Football League, the city and its inhabitants are consumed by these events. The 2006 Commonwealth Games is certain to follow this trend. The task of hosting the Commonwealth Games is enormous, although actively pursued in a fierce bidding process by competing cities. The benefits are undisputed and include an influx of visitors to the host city, an opportunity to enhance or rebuild infrastructure such as transport, plus the worldwide focus on the host city before and during the event. A high level of planning is undertaken for years well in advance of the event, and this may have an effect on the surrounding property market. Through the media both buyers and sellers are constantly reminded of the upcoming Games, the venues and the increased demand that will occur. Accordingly, this research investigates the task of hosting a major global sporting event such as the Commonwealth Games, and importantly how affects infrastructure in a host city. Attention is placed on the 2006 Commonwealth Games and the Melbourne property market. Whilst every host city differs in characteristics such as size, location and timing of the event, the findings of this study will assist a future host city to plan for the highly irregular circumstances that accompany a high profile one-off major sporting event."
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AUTHOR: Prof. Jon Robinson
TITLE: Property Valuation And Analysis Applied To
KEYWORDS:
ABSTRACT:
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AUTHOR: Kath Robson
TITLE: Environmentally Sustainable Development |Refereed|
KEYWORDS: "Demographics, Patterns Of Growth, Housing, Services, Infrastructure, Planning, ?Baby Boomers?, Life Style, Sea Change"
ABSTRACT: "Did the TV show ?Sea Change? really change people?s life styles, or was it written in answer to an already existing trend? Demographic changes are happening in Victoria. This paper examines those changes by focusing on the stretch of coastal Victoria where ?Seachange? was filmed, the Bellarine Peninsula. There is no question that these coastal regions have seen expanding growth in the housing market since 2000. New housing, high market turnover and rising prices can be attributed to a number of reasons, including increased demand for holiday houses, natural growth (in line with Melbourne), or a real change in demographics due to the phenomena known as a ?sea change?. The implications of increased population in coastal areas places increased pressure on already limited resources, both natural and created. If, these demographics changes are predominantly the over 50s (baby boomers) group, the implications are concerning. This paper examines the available data and aims to identify the underlying forces driving growth along coastal Victoria. What are the implications of these emerging demographic trends for the residential property market and communities? How are the authorities meeting the challenge that these changes place on the required services, such as age care, child care, education, health care, recreation etc? Now is the time to examine the population structures and now is the time to plan for increased demand in all the related service areas and infrastructure."
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AUTHOR: Peter Rossini And Paul Kershaw
TITLE: Using A Hybrid Automated Valuation Model To Estimate Capital And Site Values |Refereed|
KEYWORDS: "Automated Valuation Models, Property Taxation, Mass Appraisal, Residential Valuation, Hybrid Models"
ABSTRACT: "In recent years the use of Hybrid Automated Valuation Models has been widely discussed in the property taxation literature. Such models are now recognised in the IAAO's standard for AVM's. These models may produce superior results to simpler AVM's and may be particularly useful in a situation where improved properties need to be used to estimate site value. Given recent court decisions in Australia that seem to require valuers to consider sales with improvements when assessing site value in 'thin markets', such models may prove to be a useful tool in mass appraisal. This paper examines the use of a hybrid model to estimate capital and site values for residential properties in a small pilot study in Adelaide, South Australia. The model uses both vacant land and improved residential sales in a single model to estimate site and capital values simultaneously. This initial research shows that such models may prove to be a useful addition to the methodologies used by property tax authorities in Australia."
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AUTHOR: Abdul Ghani Sarip
TITLE: Integrating Artificial Neural Networks And Gis For Single-Property Valuation
KEYWORDS: "Single-Property Valuation, Automated Valuation Model, Geographic Information System, Artificial Neural Networks"
ABSTRACT: "The sales comparison approach to valuing a single property combines expert qualitative evaluation with quantitative analysis of the subject property along with comparables. Predicted values are then evaluated before a final valuation is rendered. The traditional hedonic approach involving the application of multiple regression, is problematic and faces some data management problems. This is especially when large dataset is being analysed and the effect of location attribute cannot be explained explicitly. An Automated Valuation Model (AVM) named ?Geo-Information Neural System? (GINS) is developed as an alternative for use in the valuation of single-residential property. This system integrates a Geographic Information System (GIS) technique with Artificial Neural Networks (ANN) modeling. It involves the establishment of a GIS database management system for all detached property in Damansara Heights, Kuala Lumpur. GIS is utilized for location distance measurements, spatial queries and thematic mapping whilst ANN is employed to replicate the way the human brain might process data by learning relationships, in this case the one existing between property characteristics such as physical and location attributes and sales price. A sample of 100 sales of detached houses is taken. The trained neural network model is then used to predict the probable value of a residential property. The model is built on a GIS platform, which will allow for GINS automation as well as the conduct of interactive valuations. A graphical user interface is developed for seamless integration and user interaction. The results indicate that GINS provides an efficient AVM tool that provides superior residential property valuations, while accuracy is improved by minimizing the influence of subjective judgments. The technique may be used to check valuations generated by more traditional methods as well as further improve the overall quality of single-property valuations."
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AUTHOR: Prof. Dr. Karl-Werner Schulte And Christian Kolb
TITLE: Corporate Governance In The Real Estate Industry
KEYWORDS:
ABSTRACT: "Real estate is nowadays a global business and corporate governance therefore an important issue for international investors, lenders, occupiers and developers worldwide. Some of the major issues real estate companies are concerned with today are standardized property valuation, transparency, executive compensation, board member?s qualification and board appraisal, investor?s relations and corporate rating. Corporate governance has to be perceived as a big opportunity for real estate industries worldwide in order to improve their reputation and to become more professional."
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AUTHOR: Mr Ashish Shah, Professor Arun Kumar
TITLE: Challenges In Residual Service Life Assessment For Refurbishment Projects
KEYWORDS: "Refurbishment Projects, Public Buildings, Residual Service Life Assessment, Life Care Management"
ABSTRACT: "A need for an efficient life care management of building portfolio is becoming increasingly due to increase in aging building infrastructure globally. Appropriate structural engineering practices along with facility management can assist in optimising the remaining life cycle costs for existing public building portfolio. A more precise decision to either demolish, refurbish, do nothing or rebuilt option for any typical building under investigation is needed. In order to achieve this, the status of health of the building needs to be assessed considering several aspects including economic and supply-demand considerations. An investment decision for a refurbishment project competing with other capital works and/or refurbishment projects can be supported by emerging methodology residual service life assessment. This paper discusses challenges in refurbishment projects of public buildings and with a view towards development of residual service life assessment methodology."
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AUTHOR: Dr. Garrick Small
TITLE: A Christian Understanding Of Property: Spiritual Themes Underlying Western Property |Refereed|
KEYWORDS: "Property Theory, Customary Title, Moral Theology, Social Economics, Property And Culture"
ABSTRACT: "Interest in customary title has raised awareness of the cultural dependence of property and its relationship to spirituality. Western culture has a historical connection with Christian spirituality, yet its property institution is seldom related to it. Property is found within Christian thought from the very beginning of the Old Testament and shares several important commonalities with customary peoples. The notion of property is evident in the gospels along with repeated comments on the correct application of riches. Early Christianity can be viewed as a development of the Old Testament property institution consistent with other aspects of Christian moral thought. Changes in the institution of property through the Christian era can be seen to parallel changes in Christian thought eventually leading to present day property. Overall, property can be linked to the spiritual roots of Western culture in a manner that has the capacity to inform the development of dialogue with customary peoples in their endeavours to assert the validity of their property conventions."
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AUTHOR: Garrick Small And John Sheehan
TITLE: Valuing Your Grandmother: Why Customary Title Is Incomparable To Western Conceptions Of Property Value. |Refereed|
KEYWORDS: "Property Theory, Customary Title, Valuation Methodology"
ABSTRACT: "Compensation for the extinguishment of customary title holdings has proven to be a problematic area of property valuation. In Australia there are few settlements and many have either the character of duress or have been concluded in secret. Attaching a pecuniary value to customary title has important implications for indigenous people that are not understood by Westerners. If one?s relationship to land is viewed as a personal, or even filial, relationship, the indigenous perspective becomes intelligible. This is contrasted to the material perspective currently adopted by Western peoples. Behind this fundamental difference between the two approaches lies theories of law, morals and even fundamental metaphysical questions that further separate the two systems of property. These various issues are shown to be the necessary content of any discussion of compensation for the Western extinguishment of customary tenure."
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AUTHOR: Mr. Yu Song And Dr. Chunlu Liu
TITLE: Economic Performance Analysis Of The Australian Property Sector In The 1990S Using The Input-Output Tables
KEYWORDS:
ABSTRACT: "The property sector has played an important role with its growing contribution in the national income and employment in Australian economy. There is an increasing research need in measuring and analysing the economic performance at a country level and the input-output tables are considered as an appropriate tool. This paper aims to analyse and measure the performance and sectoral linkages of the Australian property sector using five latest inputoutput tables compiled by the Australian Bureau of Statistics. The weight of the property sector in the economy is measured. The direct and total backward and forward indicators are investigated respectively. Accordingly, the direct and total input and output of the property agent sector are discussed. Moreover, the Spearman Rank Correlations are tested to decide if there are any notable changes in rankings of the efficiencies of the property agent sector between the property sector and others over the study period. Results describe the structural characteristics and development trend of the property sector in Australia. Findings can aid policy makers, property agencies and researchers in evaluating the competitive ability of property agents in Australia. They can also be used to carry out comparisons with other countries."
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AUTHOR: F. Ferdinand Spies And Daniel B. Wilhelm
TITLE: A Critical Analysis Of Us Real Estate Appraisal Methods When Used For Financial Reporting According To The International Financial Reporting Standards (Ifrs)
KEYWORDS: "Valuation, Accounting, Ifrs, Ias, Us"
ABSTRACT: "As a result of an ongoing globalization process it is important to uniform financial and valuation standards to provide a standardized financial reporting system. With the International Financial Reporting Standards (IFRS, former IAS) a promising attempt is being made. While the IFRS are mandatory for listed companies in the European Union since 2005, the IFRS have not been accepted by the US Security and Exchange Commision (SEC) yet. But the private sector Financial Accounting Standards Board (FASB), which is responsible for the US-GAAP standards, and the International Accounting Standards Board (IASB) have agreed to converge their standards. This is an important step in the standardization process of the financial reporting standards, as it might lead to an acceptance of the IFRS by the SEC. But as the US have their own national valuation methods, it is important that these are compatible with the requirements for asset valuation of the IFRS. The goal of this paper is to examine the requirements for valuation methods in accordance with the IFRS and what possible conflicts could arise between the IFRS and the US valuation methods. After looking at the appraisal of real estate in the US and the financial reporting for real estate according IAS, the compatibility will be analyzed by looking at the criteria regulatory framework, valuation process, valuation method and value concept, before coming to a conclusion."
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AUTHOR: Vivienne Spurge And Dr Claire Roberts
TITLE: Broadband Technology:An Appraisal Of The Availability And Use By Small And Medium Sized Enterprises.
KEYWORDS: "Information And Communication Technology, Broadband, Office Occupiers, Small And Medium Sized Enterprises, Working Practices."
ABSTRACT: "Rapid advances in bandwidth specification have enabled a range of new working practices, such as home-working and hot-desking, and the creation of new e-businesses. Occupiers are now demanding high levels of broadband technology in their offices, providing fast and uninterrupted data connectivity. However, despite the well publicised advantages of broadband, there are a significant proportion of small and medium sized enterprises (SMEs) still not in a position to benefit from the new technology. Broadband is now available to office occupiers in all of the major UK conurbations, and ducting channels for broadband cabling are now included as a standard item within the specification of a new Grade A specification office building. However, there are still areas of the UK where broadband is still not available, notably in rural areas and smaller towns. In addition, there appears to be little initiative being shown by landlords to provide broadband to existing smaller office buildings, thereby placing reliance upon the occupier to ?light up? their own building. Smaller office occupiers, with a total number of employees of less than 25 people, who form a major share of the UK office market, are tending to be overlooked by the large broadband providers. The UK Government is aware of the limitations of the existing supply of broadband and is currently promoting a number of new initiatives to ensure a higher level of broadband coverage throughout the country. This paper provides an overview of broadband technology and EU and UK government policy on e-business and broadband technology, with particular reference to SMEs. It will also examine the literature on the adoption of ICTs by businesses in the UK and the initiatives of the UK government and telecommunications suppliers to encourage and incentivise take up of broadband technology by SMEs. Also examined are the initiatives that are being undertaken by statutory authorities and broadband providers to increase broadband supply across the UK. This paper presents the results of a comparative analysis of the impact of broadband technology upon the working practices of SMEs in urban and rural areas in the Thames Valley region of the UK. Within this framework, the availability of broadband technology and the impact upon business practices of SMEs will be examined."
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AUTHOR: C. Susilawati, L. Armitage And M. Skitmore
TITLE: Barriers To Expanding Partnerships For Affordable Rental Housing Investment |Refereed|
KEYWORDS: "Partnerships, Affordable Housing, Rental Housing, Housing Supply, Stakeholders"
ABSTRACT: "The recent housing boom, experienced across Australian metropolitan markets, has attracted many new investors and resulted in increasing prices across the full range of residential sub-markets for both owner-occupation and investment categories. Of particular concern from a social perspective is the consequential pressure generated in the affordable housing rental market. Moreover, high vacancy rates and modest rental growth in rental housing has caused a deterioration in the investor?s rental yield given these increasing house prices (Powall and Withers, 2004, p.7). In this difficult situation, traditional delivery methods for rental housing are unlikely to continue to attract more investment in this area. Although some innovative proposals - such as public private partnerships in the affordable housing area - have been put forward as solutions, many stakeholders continue to hold doubts about the specious attractions of such approaches (Susilawati and Armitage, 2004). This paper reports the results of a survey of affordable housing providers drawn from a range of backgrounds: namely the private sector, government and non-for-profit organisations. Using in-depth interviews, it compares the opinions of these supply side groups regarding their experiences of the barriers to entry to such partnerships. The findings show agreement across the sector that, for a range of reasons, they have failed to produce better outcomes than would have been expected without the partnership. Further analysis using two-way and three-way cross-tabulation is then used to investigate the importance level between sub-groups."
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AUTHOR: Clive M J Warren And Sherman H K Heng
TITLE: Fm Education Are We Meeting Industry Needs |Refereed|
KEYWORDS: "Management, Education, Professional Skills, Uk And Australia."
ABSTRACT: "The alignment of degree courses offered by tertiary education institutions with the skills needed by the Facilities Management industry is essential to the future development of the profession. This research paper explores the match between competencies identified by UK, USA and Australian professional bodies and the university courses. The research reveals significant gaps, particularly in the area of key business skills, and suggests the need for course designers and industry to work more closely in the future in order to develop educational offerings which will support the development of the FM profession globally."
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AUTHOR: Shi-Ming Yu, Sun-Sheng Han And Chee-Hian Chai
TITLE: Modeling The Value Of View In Real Estate Valuation: A 3-D Gis Approach
KEYWORDS: "View, Valuation, 3-D Gis"
ABSTRACT: "Views, being a qualitative and subjective variable, are difficult to measure and quantify for valuation purposes. To quantify view in a variable, there is a need to reflect the influence of surrounding buildings? height, the surrounding topography, as well as the height and orientation of the subject property itself. Such influences could only be captured using 3-D modeling techniques. Few studies have explored the use of 3-D modeling for valuation and mass appraisal purposes. This paper demonstrates the use of 3-D GIS and regression analysis to estimate the value of a view in an urban housing market. It focuses on the valuation of sea view in private high-rise residential properties located near the eastern coast of Singapore. Our results show that an unobstructed sea view will add an average premium of 15% to the house price. In addition, we further illustrate the application of our model in a simulation exercise to maximize the seaview of a redevelopment project in the same neighbourhood. The paper further suggests implication of pricing strategies of private developers in pre-construction sales."
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