scholarly journals Investment returns of US commercial timberland: insights into index construction methods and results

2017 ◽  
Vol 47 (2) ◽  
pp. 226-233 ◽  
Author(s):  
Bin Mei
Keyword(s):  
Property Market ◽  
Index Construction ◽  
Market Values ◽  
Transaction Prices ◽  
Construction Methods ◽  
Asset Pricing Models ◽  
Ex Post ◽  
Investment Returns ◽  
Abnormal Performance ◽  
Appraisal Smoothing

This study compares different index construction methods of timberland investment returns and evaluates the resulting indices by various asset pricing models. In addition to various NCRIEF indices, I include a de-smoothed index that attempts to restore property market values, a transaction-based index that tracks ex post transaction prices, and a pure-play index that is based on unleveraged returns of public timber firms and only has exposures to the timber segment. The findings are that the appraisal-based timberland index has higher mean and lower volatility compared with the transaction-based timberland index, separate accounts outperform comingled funds in the private timberland market, the pure-play timberland index exhibits higher return and lower risk than the corresponding portfolio of public timber firms, and abnormal performance of timberland asset becomes less significant after controlling for the appraisal smoothing or by using real transaction data. These results can help timberland investors better benchmark their financial performance.

scholarly journals Incorporating Private Savings Behavior in Product Offerings: A Case Study of Pakistan

2021 ◽  
Vol 10 (2) ◽  
pp. 247-258
Author(s):  
Salman Ahmed Shaikh
Keyword(s):  
Urban Areas ◽  
Savings Behavior ◽  
Ex Post ◽  
Savings Rate ◽  
Investment Returns ◽  
Private Savings ◽  
Micro Foundations ◽  
Islamic Investment

In order to enhance understanding about the actual savings behaviour and impulses which drive savings behaviour, it is interesting to study the micro foundations of savings behaviour. Collecting micro data through filled questionnaire from households in urban areas, this study identifies the motives of savings and the instruments and channels where the savings are invested in Pakistan. The results reveal that investment motive, higher income and greater frequency of household members joining labor force for earning incomes enhance the monthly savings rate. The results can be used to offer Islamic investment deposits in an attractive way. If the investment deposits are pitched properly by highlighting the stable ex-post investment returns and low ex-post volatility, then people with an investment motive parking their savings in fixed income mutual funds would be attracted towards Islamic investment deposits. Likewise, incremental long term savings plans wherein periodic investments increase over a period of time can be offered given that monthly savings rate are found to be positively associated with income. Finally, joint investment accounts can be offered given the finding that monthly savings rate is higher in households with greater number of earning members in family.JEL Classification: G11, G21, G23How to Cite:Shaikh, S. A. (2021). Incorporating Private Savings Behavior in Product Offerings: A Case Study of Pakistan. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 247-258. https://doi.org/10.15408/sjie.v10i2.20139.

The Influence of Aircraft Noise on the Prices of Residential Properties on the Example of Poznań

2021 ◽  
Vol 23 ◽  
pp. 263-278
Author(s):  
Cyprian Chwiałkowski ◽  
Adam Zydroń
Keyword(s):  
Significant Influence ◽  
Aircraft Noise ◽  
Fourth Quarter ◽  
Hedonic Regression ◽  
Property Market ◽  
Transaction Prices ◽  
Residential Properties

The article analyses the influence of aircraft noise on the transaction prices of residential premises within the Poznań property market. The paper analyses the set of properties, subject to the transaction from the first to the fourth quarter of 2020. In total, 1550 properties were examined. The study defined basic attributes of all premises, exhibiting the most significant influence on their price. The research conducted using the hedonic regression allowed for the identification of crucial evidence that aircraft noise negatively affects the property transaction prices.

scholarly journals Comparative Analysis of Transaction Prices and the Values of Forest Properties in Poland

Forests ◽  
2020 ◽  
Vol 11 (12) ◽  
pp. 1323
Author(s):  
Radosław Gaca ◽  
Robert Zygmunt ◽  
Michal Gluszak
Keyword(s):  
Imperfect Information ◽  
Private Forest ◽  
Market Prices ◽  
Market Participants ◽  
Market Values ◽  
Transaction Prices ◽  
Property Prices ◽  
Additional Question ◽  
Unbiased Estimates ◽  
Asymmetrically Distributed

Research Highlights: In the paper, we explore systematic discrepancy between sale prices and values of forest properties in Poland. We argue that the systematic valuation bias found is partially caused by the simplified parametric appraisal methodology currently used in Poland. Background and Objectives: Most of the forests in Poland are state-owned, but in recent decades, the market for private forest properties has been dynamically growing. In the paper, we investigate the relations between the actual transaction prices, and the estimated value of forest properties in selected regions in Poland. We hypothesize that sale prices systematically deviate from valuations. An additional question arises regarding the determinants of forest property prices. We hypothesize that due to asymmetric information positive amenities are not fully capitalized in property prices in Poland. Materials and Methods: In the paper, we adopt two regression models used to investigate the valuation accuracy and bias. We test the hypothesis that valuations are unbiased estimates of transaction prices. Results: The results indicate that market prices for forest properties systematically differ from estimated values. Conclusions: Systematic deviation of forest property sales prices from market values may contribute to the imperfect information available to the market participants, especially when information is asymmetrically distributed between buyers and sellers. This may confirm the hypothesis that sellers are not fully aware of the advantages of the property being sold, and provide further explanations for large systematic differences between sales prices and valuations based on parametric valuation methods used in Poland.

scholarly journals The Effects of Defective Spatial Structure on the Agricultural Property Market

2015 ◽  
Vol 15 (1) ◽  
pp. 174-192
Author(s):  
Anna Bielska ◽  
Tomasz Budzyński ◽  
Wioleta Krupowicz
Keyword(s):  
Spatial Structure ◽  
Rural Areas ◽  
Agricultural Land ◽  
Width Ratio ◽  
The European Union ◽  
Property Market ◽  
Transaction Prices ◽  
Study Results ◽  
Property Price ◽  
Agricultural Areas

Abstract Rural areas in Poland are distinguished by one of the worst spatial structures of individual land properties in the European Union. The least favourable structure occurs in the southern and south-eastern part of the country, where it results in farms losing 20-30% of their agricultural revenue. The bad spatial organisation of land is also reflected in transaction prices obtained for agricultural land. Considering criteria such as: land management, parcel area, width, and elongation (length to width ratio), and soil bonitation value, this paper determines the effect of each of the criteria separately on the development of transaction prices of agricultural land in the years 2009-2014 in selected villages in the southern part of the Cegłów (Mińsk district, Mazowieckie province), distinguished by the unfavourable spatial structure of agricultural land. Meeting this objective involved the application of the analytical capacity of the Geographic Information Systems (GIS), cadastral data base, soil-agricultural map vector, study of the conditions and directions of the spatial management of the Cegłów area, and the property price and value register. The obtained study results suggest that in areas with particularly defective spatial structure, land with parameters permitting its efficient use, i.e. with proper width and elongation is particularly valuable. Another parameter determining the level of obtained prices is the bonitation value, although it is of less importance for the analysed area than for agricultural areas with proper management conditions.

scholarly journals The Effect of Expected Losses on the Hong Kong Property Market

2021 ◽  
Author(s):  
Ling Li ◽  
Wayne Xinwei Wan
Keyword(s):  
Hong Kong ◽  
Residential Property ◽  
Property Market ◽  
Commercial Property ◽  
Transaction Prices ◽  
Commercial Markets ◽  
Commercial Market ◽  
Market Transaction ◽  
Market Factors ◽  
Loss Effect

AbstractExpected losses anchored to purchase prices can affect actual transactions in different property sectors. Utilizing the data of over a million commercial and residential property transactions in Hong Kong from 1991 to 2015, we find that sellers facing nominal losses relative to their prior purchase prices attained higher selling prices than their counterparts. We suggest two market factors to account for the extent of the loss effect on the market transaction prices. First, the loss effect is only prominent when comparable transaction information is not readily accessible, such as in the less-transacted commercial property market. Second, our results suggest the relevance of the loss effect to the boom-bust property cycle in both the residential and commercial markets. The effect of expected losses on transaction prices is relatively weak in the bust period between 1998 and 2003 when the Hong Kong property market lost almost two-thirds of its value, and it enlarges with the market recovering. The loss effect is not attenuated at the aggregate market level but is associated with strong reductions in price declines in the bust period and in the commercial market. These results have implications for understanding the market adjustment of the loss effect in the property market and its association with the aggregate market dynamics in a boom-bust property cycle.

Sustainability evolution in the Australian property market

2016 ◽  
Vol 34 (6) ◽  
pp. 578-601 ◽  
Author(s):  
Georgia Warren-Myers
Keyword(s):  
Professional Development ◽  
Global Financial Crisis ◽  
Sustainability Reporting ◽  
Longitudinal Survey ◽  
Development Theory ◽  
Property Market ◽  
Product Model ◽  
Content Type ◽  
Market Values ◽  
The Relationship

Purpose The relationship between sustainability and value in property has been a major area of investigation over the past decade. However, in spite of the extant literature and research, the connections made by valuers in practice of the value relationship are still unresolved. The purpose of this paper is to investigate, in the Australian context, valuers’ perception of the relationship between sustainability and value; and their experience and knowledge of sustainability in valuation practice. Design/methodology/approach The research investigates valuers’ perception and knowledge of sustainability and its inclusion in valuation practice in Australia. The approach uses a longitudinal survey of valuers from 2007 to 2015 tracking valuers’ knowledge, understanding, inclusion of sustainability reporting and the perceptions of the relationship between sustainability and market value. Findings This paper presents findings from a longitudinal survey that has been conducted in Australia since 2007, identifying changes between 2007, the height of the property market and sustainability engagement prior to the global financial crisis, and the subsequent years to 2015. The growth of sustainability in the property market is significant, however, valuers’ knowledge and reporting on sustainability is not demonstrating the same level of development. As a result, this is inhibiting valuers reporting on sustainability and has implications for practice and treatment of market values. Practical implications This research highlights the need to examine how to assist valuers to more rapidly develop knowledge and experience to reflect the implications of change in practice. Current approaches being developed in the UK and Europe, like the introduction of RenoValue professional development programs and guidance documents, to assist valuers to develop their knowledge needs to be implemented in the Australian environment as current approaches are inadequate, and steps need to be taken in order to assist their development of knowledge and experience as the market demonstrates growth and acceptance of sustainability. This research identifies the need to re-examine how professional development is undertaken and knowledge developed by those practicing in the profession in Australia. Originality/value This longitudinal survey is the only research that has spanned a substantial period of time attempting to ascertain valuers’ perception of the relationship between sustainability and value; and attempts to track the knowledge development of valuers in the context of sustainability. The findings identify how the market is developing and adhering to a product model development theory, however, also identifies more fundamental issues and implications for valuation praxis, in the development of knowledge and ability of valuers to adapt to change and reflect these valuations.

scholarly journals An innovative methodological approach for the analysis of the effects of urban interventions on property prices [Un approccio metodologico innovativo per l’analisi degli effetti degli interventi di trasformazione urbana sui valori immobiliari]

2020 ◽  
Vol 26 ◽  
pp. 25-49
Author(s):  
Felicia Di Liddo ◽  
Pierluigi Morano ◽  
Francesco Tajani ◽  
Carmelo Maria Torre
Keyword(s):  
Methodological Approach ◽  
Quality Level ◽  
Market Values ◽  
Property Prices ◽  
Ex Post ◽  
Post Market ◽  
Residential Properties ◽  
Urban Quality ◽  
Price Functions ◽  
Definition Of

The evaluation of the effects that an urban interventiongenerates on the area in which it is realized, and moregenerally on the city-system, plays a central role in thedefinition of its effectiveness, as it measures the effectsthat may derive from its implementation in terms of im-proving the quality level of the natural and built envi-ronment. The present research intends to propose andtest a methodological and operational approach to eva-luate, with quantitative indicators, the effects that anurban redevelopment initiative can have on propertyprices. In particular, the aim of the work concerns thedevelopment of a procedural protocol articulated intoclear and replicable phases, in order to support the ana-lysis of the urban transformation effects. The protocolis applied to four redevelopment projects currently inprogress, located in four municipal trade areas in thecity of Bari (Southern Italy). For each urban area, a sam-ple of two hundred residential properties sold in the pe-riod 2017-2019 has been collected. The implementationof a genetic algorithm has allowed the definition of theeconometric price function, able of identifying the setof variables - intrinsic and extrinsic – which, in each ofthe four intervention areas, contributes to the formationof property prices in the “ante-project” situation. Theanalysis of the effects of urban redevelopment in termsof variation of the urban quality has been carried out.Through an exogenous approach based on the inter-view of experts and community individuals, the valuesof the factors related to the urban quality following theimplementation of the projects have been determinedagain (“post-project” situation). By inserting the new va-lues into the econometric price functions alreadyfound, the market values of the post-project situationhave been estimated. The comparison between ex anteand ex post market values shows the increase in pro-perty prices following the redevelopment initiative andallows to quantify it, confirming the full consistencywith the expected empirical trends.

scholarly journals Stock Market Values And P/E Ratios As Predictors Of New York Stock Exchange Delistings

2011 ◽  
Vol 4 (3) ◽  
pp. 56
Author(s):  
Aaron L. Phillips
Keyword(s):  
New York ◽  
Asset Pricing ◽  
Firm Size ◽  
Stock Exchange ◽  
Anomalous Behavior ◽  
Pricing Models ◽  
Market Values ◽  
Asset Pricing Models ◽  
York Stock Exchange ◽  
Survivor Bias

The price-to-earnings ratio effect and the small firm effect literature suggests that stock markets are inefficient, asset pricing models are misspecified, or both. Consequently, it appears that one can earn positive, abnormal, risk-adjusted returns by investing in select stocks based on P/E ratio, firm size, or other anomalous behavior criteria. One potential explanation for the abnormal return observations is survivor bias in tests of asset pricing models. This research reports the results of an empirical investigation of delisting as a possible contributor to anomalous behaviors. The evidence indicates that delisting fails to contribute to the P/E effect; however, firm size is associated with delisting when survivor bias is controlled.

scholarly journals An Innovative Thinking on the Concepts of Ex-Ante Value, Ex-Post Value and the Realized Value (Price)

2015 ◽  
Vol 6 (1) ◽  
pp. 48
Author(s):  
Mohammad Ali Tareq
Keyword(s):  
Asset Pricing ◽  
Expected Value ◽  
Pricing Models ◽  
Asset Pricing Models ◽  
Ex Post ◽  
Ex Ante ◽  
Innovative Thinking ◽  
Definition Of

Researchers have been considering the realized value as the ex-post realization of theex-ante value. They have argued that that the realized values have failed to estimate the expectedvalue in asset-pricing models. We provide a new definition of the ex-post measurement and weshow that considering realized value as the ex-post realization of the ex-ante value is misleadingand this has led to the failure in estimating the expected value.

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