scholarly journals The value of property management services: an experiment

2014 ◽  
Vol 32 (3) ◽  
pp. 213-223 ◽  
Author(s):  
Jinhuan Li ◽  
Paavo Monkkonen
Keyword(s):  
Survey Methodology ◽  
Residential Buildings ◽  
Property Management ◽  
Real Estate Industry ◽  
Content Type ◽  
The Real Estate ◽  
Company Value ◽  
Residential Properties ◽  
The Impact ◽  
Management Services

Purpose – Assessing the value of property management services is challenging because of collinearity between property quality and the quality of property management companies. In order to overcome this challenge and isolate the impact of property management services, the purpose of this paper is to use an experimental approach inspired by work in labor economics (Bertrand and Mullainathan, 2004) to measure the value of property management services for residential properties in Hong Kong. Design/methodology/approach – The authors surveyed over 150 experts in the real estate industry and asked them to estimate the value of five hypothetical properties. In each survey, the authors randomly assign different property management companies, which we have ranked by levels of quality, to the properties. In this way the authors were able to test whether property management services significantly impact property prices and whether this impact varies across types of residential buildings. Findings – Results show that property management does add value, especially to older and more dilapidated properties. Practical implications – Findings suggest that there is money to be made by high-quality companies providing services for lower quality buildings. Originality/value – The experimental survey methodology applied in this paper provides an innovative way to measure company value.

The impact of Generation Z in the intention to purchase real estate in Kosovo

2019 ◽  
Vol 38 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Visar Hoxha ◽  
Emblema Zeqiraj
Keyword(s):  
Real Estate ◽  
Quantitative Research ◽  
Real Estate Industry ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Generation Z ◽  
Intention To Purchase ◽  
And Behaviors ◽  
The Impact

Purpose The purpose of this paper is to identify the impact that Generation Z has on the real estate industry of Kosovo. By studying the behaviors and characteristics of Gen Z the stakeholders in the real estate industry can gain advantages and opportunities in getting to comprehend their preferences, their perspective and their decision to buy real estate in Kosovo. Design/methodology/approach The present study used a quantitative research method. For the purpose of this study a questionnaire with close-ended questions is used. The questionnaire used for this study is a self-evaluation and self-administrated questionnaire. The study included 200 people, mainly Albanian speakers who participated in the questionnaire. All participants of the questionnaire were strictly members of Generation Z that were born in the time period of 1995–2012. In this questionnaire the participants were provided with full anonymity, since none of their identity data were requested during this process. Findings The findings of this study indicate that Gen Z and their different characteristics will have an impact on the real estate industry. Research limitations/implications This study can be utilized as a landmark for agents of real estate on understanding how they can use the characteristics and behaviors of Gen Z in their favor, by pointing out the prominence of those characteristics and behaviors in realizing the needs and desires of the potential buyers and the influence they have on the decision to buy property. Furthermore, through this study, the real estate agencies will be provided with multiple reasons that substantiate the necessity to perform the proper research about differences between generations. Originality/value The study is the first quantitative study that studies the linkage between behaviors and characteristics of Generation Z and their intention to purchase real estate.

On the Property Management Services Ordinance of Hong Kong: concerns and implications

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philip Wong ◽  
Joseph Lai
Keyword(s):  
Hong Kong ◽  
Common Law ◽  
Self Regulation ◽  
Policy Formulation ◽  
Property Management ◽  
Content Type ◽  
Freedom Of Contract ◽  
The United Kingdom ◽  
Potential Problems ◽  
Management Services

PurposeThis paper aims to examine the concerns and implications of the recently enacted Property Management Services Ordinance (Cap. 626) (PMSO) of Hong Kong.Design/methodology/approachA review was undertaken to identify the characteristics of the property management-related legislation of common law jurisdictions similar to Hong Kong, which include Australia, Canada and the United Kingdom. Then, the development of the property management-related ordinances in Hong Kong and the key features of the PMSO were examined. Finally, a case study was conducted to demonstrate the potential problems of the PMSO.FindingsThere are various kinds of legislative controls on property management services in the above common law jurisdictions. The PMSO, which is the first to regulate property management services providers through a licencing system and introduce control on training and professional development, imposes limits on freedom of contract and self-regulation of professionals. Potential problems with the implementation of the PMSO are also revealed.Research limitations/implicationsThis research analyses four common law jurisdictions. Property management services contracts in these jurisdictions are subject to governance by their case laws and market operations.Practical implicationsBy virtue of the new licencing system of the PMSO, property management services contracts in Hong Kong become a new kind of specific contracts.Originality/valueThis paper illustrates the relationship between freedom of contract and public benefit. It contributes knowledge to the area of government policy formulation in property management.

Brokerage fee, ownership expropriation and earnings management of Malaysian property companies

2018 ◽  
Vol 36 (4) ◽  
pp. 461-482 ◽  
Author(s):  
Lik Jing Ung ◽  
Rayenda Khresna Brahmana ◽  
Chin-Hong Puah
Keyword(s):  
Real Estate ◽  
Earnings Management ◽  
Stock Exchange ◽  
Real Estate Industry ◽  
Kuala Lumpur ◽  
Probit Regression ◽  
Content Type ◽  
The Real Estate ◽  
Report Data ◽  
The Relationship

Purpose The purpose of this paper is to investigate whether real estate companies manipulate their earnings through the brokerage fee across ownership expropriation or not. Design/methodology/approach This study considers Kuala Lumpur Stock Exchange listed real estate firms to investigate how the brokerage fee in the real estate industry might affect the earnings management of firms across its ownership expropriation. Using annual report data, the authors investigate the associations over a panel for the period 2008−2012. Robust panel regression is used to divulge the probability values with reference by probit regression. Findings Overall, the results show that high brokerage fees would drive more events of earnings management and that, generally, the ownership concentration among Malaysian real estate firms significantly affects the earnings management of the firms. Practical implications This study shows that firm profitability and brokerage fees enhance the probability of firm’s earnings management. A low brokerage fee would reflect low revenue to the company. Therefore, management would opt to manipulate earnings in order to overstate earnings, which garners more interest from investors. Originality/value Real estate values in Malaysia have climbed steadily over the years due to a combination of reasons giving companies a higher brokerage fee. Earnings management has become a big issue for property investors. The study demonstrates the relationship between earnings management and brokerage fee across ownership expropriation which can be considered by shareholders in their own strategic planning and investors in their own investing.

Parametric study of the impact of building envelope systems on embodied and operational carbon of residential buildings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amneh Hamida ◽  
Abdulsalam Alsudairi ◽  
Khalid Alshaibani ◽  
Othman Alshamrani
Keyword(s):  
Saudi Arabia ◽  
Residential Buildings ◽  
Building Envelope ◽  
Base Case ◽  
Content Type ◽  
Embodied Carbon ◽  
Block Wall ◽  
Shading Device ◽  
The Impact ◽  
Total Life

PurposeBuildings are responsible for the consumption of around 40% of energy in the world and account for one-third of greenhouses gas emissions. In Saudi Arabia, residential buildings consume half of total energy among other building sectors. This study aims to explore the impact of sixteen envelope variables on the operational and embodied carbon of a typical Saudi house with over 20 years of operation.Design/methodology/approachA simulation approach has been adopted to examine the effects of envelope variables including external wall type, roof type, glazing type, window to wall ratio (WWR) and shading device. To model the building and define the envelope materials and quantify the annual energy consumption, DesignBuilder software was used. Following modelling, operational carbon was calculated. A “cradle-to-gate” approach was adopted to assess embodied carbon during the production of materials for the envelope variables based on the Inventory of Carbon Energy database.FindingsThe results showed that operational carbon represented 90% of total life cycle carbon, whilst embodied carbon accounted for 10%. The sensitivity analysis revealed that 25% WWR contributes to a significant increase in operational carbon by 47.4%. Additionally, the efficient block wall with marble has a major embodiment of carbon greater than the base case by 10.7%.Research limitations/implicationsThis study is a contribution to the field of calculating the embodied and operational carbon emissions of a residential unit. Besides, it provides an examination of the impact of each envelope variable on both embodied and operational carbon. This study is limited by the impact of sixteen envelope variables on the embodied as well as operational carbon.Originality/valueThis study is the first attempt on investigating the effects of envelop variables on carbon footprint for residential buildings in Saudi Arabia.

The Effect of Leverage on Investment, Dividends, and Company Value on the Real Estate Industry in Indonesia

2020 ◽  
Vol 7 (1) ◽  
pp. 54-70
Author(s):  
Dwi Atmanto
Keyword(s):  
Real Estate ◽  
Total Population ◽  
Stock Exchange ◽  
Present Condition ◽  
Real Estate Industry ◽  
The Real Estate ◽  
Dividend Payments ◽  
Company Value ◽  
Product Innovations ◽  
Real Estate Sector

The purpose of this study is to examine and explain the effect of leverage on the value of real estate companies listed on the Stock Exchange in Indonesia, with investment and dividend as mediators. This study is explanatory research. Explanatory is research conducted with the intention to explain an influence of variables through testing hypotheses. The population in this study is all real estate companies listed on the Indonesia Stock Exchange. The total population was as many as 44 companies. The results of this study indicate that high dividend payments will cause decrease in value of company. First, market considers that at present condition of company has opportunity to grow, so the company should focus on funding investment activities. With the intense competition in real estate sector, companies to survive in industry must have product innovations. Empirically, previous research examining the interaction between leverage, investment, dividends, and company value has produced inconsistencies in research results (gaps).

Foreign investment in Australian residential properties

2019 ◽  
Vol 12 (2) ◽  
pp. 166-180 ◽  
Author(s):  
Hassan F. Gholipour ◽  
Hooi Hooi Lean ◽  
Reza Tajaddini ◽  
Anh Khoi Pham
Keyword(s):  
Real Estate ◽  
Foreign Investment ◽  
House Prices ◽  
Real Estate Market ◽  
Housing Development ◽  
Housing Construction ◽  
Annual Data ◽  
Content Type ◽  
Residential Properties ◽  
The Impact

Purpose The purpose of this study is to examine the impact that foreign investment in existing houses and new housing development has on residential house prices and the growth of the housing construction sector. Design/methodology/approach The analysis is based on a panel cointegration method, estimated using annual data for all Australian states and territories spanning the period of 1990-2013. Findings The results indicate that increases in foreign investment in existing houses do not significantly lead to increases in house prices. On the other hand, a 10 per cent increase in foreign investment for housing development decreases house prices by 1.95 per cent. We also find that foreign real estate investments have a positive impact on housing construction activities in the long run. Originality/value Existing studies used aggregate foreign real estate investment in their analyses. As foreign investment in existing houses and foreign investment for housing development have different impacts on the demand and supply sides of housing market, it is crucial that the analysis of the effects of foreign investment in residential properties on real estate market is conducted for each type differently.

Does the commercial real estate industry need “more pussy on the block?”

2019 ◽  
Vol 37 (5) ◽  
pp. 627-637 ◽  
Author(s):  
Dustin C. Read
Keyword(s):  
Real Estate ◽  
Gender Bias ◽  
Second Generation ◽  
Commercial Real Estate ◽  
Real Estate Industry ◽  
Structured Interviews ◽  
Content Type ◽  
Local Chapter ◽  
Professional Credibility ◽  
The Impact

Purpose In a controversial 2018 interview, commercial real estate mogul Sam Zell insinuated that companies should promote their employees based exclusively on merit and avoid purposefully taking steps to get “more pussy on the block” in the name of gender equality. The comment was criticized not only for its crassness, but also for its failure to recognize the challenges many women working in the commercial real estate industry face in their efforts to obtain the same opportunities, compensation and status as similarly-qualified men. In an effort to overcome these disparities, the purpose of this paper is to focus on the pervasiveness of second-generation gender bias and stereotyping in the field through a qualitative analysis. Design/methodology/approach Semi-structured interviews were conducted with 39 women serving as local chapter presidents of a prominent commercial real estate trade group to explore the impact of gender on their career advancement and their experiences with second-generation gender bias. Findings The findings suggest unintentional discrimination often influences women’s careers by drawing their communication skills, professional credibility and commitment to the organizations for whom they work into question. Originality/value The research contributes to the existing literature by offering additional evidence that unintentional discrimination is common in male-dominated industries, such as commercial real estate. It also provides clear examples of social cues women perceive to heighten tension along gender lines and impinge upon their ability to ascend to leadership positions.

Selling a house and the decision to use a real estate broker in Norway

2015 ◽  
Vol 33 (2) ◽  
pp. 173-186
Author(s):  
Mary Ann Stamsø
Keyword(s):  
Real Estate ◽  
Web Sites ◽  
Property Management ◽  
Real Estate Broker ◽  
Sales Price ◽  
Content Type ◽  
Sales Process ◽  
The Usa ◽  
The Impact ◽  
Estate Broker

Purpose – The purpose of this paper is to examine the widespread of property sellers choosing to sell by themselves or through an estate agent, what characterises them and the reason for their choice. In addition the paper contains comparisons of the gap between sales price and asking price between the sales methods and satisfaction with the sales process. This study is the first study of these phenomena carried out in Norway. Design/methodology/approach – The data used for this study was obtained from a national survey including 1,649 house sellers. A logistic regression analysis is used to analyse the impact of household’s characteristics on the sales method. Findings – The main findings of this study are that 83 per cent of the house sellers used an estate agent through the whole sales process and differences in the choices are related to urbanisation, age and education. The most important reason for preferring a real estate broker is that doing the sale on your own is considered too much work. Conversely, the most important reason for doing the sale on your own is that estate agents are too expensive. Those selling without an estate agent were more satisfied and the gap between sales price and asking price was smaller than for those selling through a real estate broker. Originality/value – Issues concerning competition within the market for estate agents should be central topics for property management. Property sellers selling their property by themselves are an important contribution to increase the competition in the market for estate agents. This issue has not been on the agenda in Norway, or in Europe, in the same way as in the USA. This is probably due to the complexity in the legislation and strict laws within property sales in Central and Southern Europe. However, in Norway, UK and in the Nordic countries, the legal system is not complicated. It is rather the lockout of private individuals from the housing web sites and the fact that the property sellers are not familiar with this kind of transaction that has prevented property sellers to sell their house by themselves. Today Norway is one of few countries with a booming housing market, which also has increased the commission for estate agents. From 2010 private individuals got access to advertise their house on the housing web sites in Norway. These have influenced the focus on alternative sales methods.

The role of investment property appraisal in European real estate companies

2020 ◽  
Vol 13 (1) ◽  
pp. 105-122
Author(s):  
Juha Mäki
Keyword(s):  
European Union ◽  
Real Estate ◽  
Design Methodology ◽  
Annual Reports ◽  
Real Estate Industry ◽  
Publicly Traded ◽  
Content Type ◽  
The Real Estate ◽  
Practical Implications

Purpose This paper aims to examine the connection between appraisals of investment properties and earnings properties in companies from two perspectives: what kinds of companies employ the most reputable appraisers and how appraisers produce estimations. Design/methodology/approach The research uses annual reports of European Union (EU) publicly traded real estate companies and examines the period 2007-2016. Findings The contribution of this study lies in establishing that some indicators and features of real estate companies affect the choice of appraiser and also in illustrating differences in the results of property valuations. In short, smaller companies with weaker performance are less willing to use external valuation, and external appraisers produce more conservative estimations for investment properties. Practical implications The research produces beneficial information for investors and other stakeholders interested in the real estate industry. Originality/value This is the first novel study to examine the link between appraisals of investment properties and earnings properties in companies in detail.

Artificial intelligence and real estate - not just an evolution, a real game changer!

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcelo Cajias
Keyword(s):  
Artificial Intelligence ◽  
Real Estate ◽  
New Technologies ◽  
Current Status ◽  
Real Estate Industry ◽  
Expiry Date ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Analyse Data

PurposeDigitalisation and AI are the most intensively discussed topics in the real estate industry. The subject aims at increasing the efficiency of existing processes and the institutional side of the industry is really interested. And in some ways, this is a breakthrough. This article elaborates on the current status quo and future path of the industry.Design/methodology/approachThe real estate industry is evolving, and parts of the business are increasingly being conquered by “proptechs” and “fintechs”. They have come into real estate to stay not because they discovered inefficiencies in the way one manages and does business with real estate, but because they come with an arsenal of new technologies that can change the whole game. The article discusses a path for changing the game in real estate.Findings“location, location, location” has now evolved to “data, data, data”. However, there is one essential aspect that must be considered before the latter can become the real value creator: the ability of market players to analyse data. And this does not mean being an excellent Excel user. The near future sees a solution called Explainable Artificial Intelligence (XAI) meaning that the econometric world constructed decades ago has an expiry date.Originality/valueOne needs to delete two myths from their mind: data quantity is proportional to accurate insights and that bringing your data to a cloud will deliver you with all the insights your business needs almost immediately.

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