scholarly journals EXAMINING THE RELATIONSHIP BETWEEN REAL ESTATE AND STOCK MARKETS IN HONG KONG AND THE UNITED KINGDOM THROUGH DATAMINING / RYŠIO TARP HONKONGO IR JUNGTINĖS KARALYSTĖS NEKILNOJAMOJO TURTO BEI AKCIJŲ RINKŲ NAGRINĖJIMAS ANALIZUOJANT DUOMENIS

2011 ◽  
Vol 15 (1) ◽  
pp. 26-34 ◽  
Author(s):  
Eddie C. M. Hui
Keyword(s):  
Hong Kong ◽  
United Kingdom ◽  
Real Estate ◽  
Stock Markets ◽  
Real Estate Market ◽  
Price Effect ◽  
Real Estate Markets ◽  
The United Kingdom ◽  
Transmission Mechanisms ◽  
The Relationship

This paper aims to examine the relationship between real estate market and stock market in the United Kingdom and in Hong Kong, from 1993 to 2007, using the method of datamining. The results provide evidence for the existence of not only a positive correlation, but also a co-movement, between the two markets. Such interactions reflect the similarities among these two regions, which can be explained by two transmission mechanisms: wealth effect and credit-price effect. However, the two real estate markets respond differently upon similar adjustments of the respective stock markets. Such dissimilarity is attributed to their respective local factors. It is shown in the paper that datamining could be an appropriate option for studying this kind of relationships. Santrauka Šiame darbe siekiama duomenų analizės metodu išnagrinėti ryšį tarp Jungtinės Karalystės ir Honkongo nekilnojamojo turto rinkų ir akcijų rinkų nuo 1993 iki 2007 m. Remiantis gautais rezultatais matyti, kad tarp minėtų dviejų rinkų egzistuoja ne tik teigiama koreliacija, bet ir kovariacija. Tokios sąveikos rodopanašumus tarp šių dviejų regionų, o tai paaiškinama dviem perdavimo mechanizmais: turto poveikiu ir kredito bei kainos poveikiu. Tačiau dvi nekilnojamojo turto rinkos skirtingai reaguoja į panašų akcijų rinkų reguliavimą. Taip vyksta dėl jų vietinių veiksnių įtakos. Duomenų analizė galėtų būti tinkama alternatyva tiriant tokius ryšius.

scholarly journals Towards an ‘information technocracy’: discourses of London’s post-referendum real estate markets

2019 ◽  
pp. 103-114
Author(s):  
Nicola Livingstone
Keyword(s):  
United Kingdom ◽  
Real Estate ◽  
Expert Knowledge ◽  
Real Estate Market ◽  
Property Development ◽  
Real Estate Markets ◽  
North East ◽  
The North ◽  
The United Kingdom ◽  
Technologies Of Representation

This chapter is a study of the ways in which property development elites use particular techniques and technologies of representation to create development real estate markets in the United Kingdom. It compares the construction of post-Brexit vote narratives of investment landscapes and opportunities in London and the North-East. London's real estate market is considered the leading destination for global capital flows into commercial real estate in the United Kingdom, and therefore it becomes the centrepiece of an evolving socio-technical system. The chapter specifically looks at the media narratives disseminated by real estate market agents in the aftermath of the Brexit referendum in London. It does so in order to question the role of media exposure and private consultancy firms and reflects on the way specialist expert knowledge is publicly disseminated to directly shape public opinion and, indirectly, real estate decision-making.

scholarly journals Time–Scale Relationship between Securitized Real Estate and Local Stock Markets: Some Wavelet Evidence

2019 ◽  
Vol 12 (1) ◽  
pp. 16 ◽  
Author(s):  
Kim Hiang Liow ◽  
Xiaoxia Zhou ◽  
Qiang Li ◽  
Yuting Huang
Keyword(s):  
Real Estate ◽  
Stock Market ◽  
Time Scale ◽  
Stock Markets ◽  
Real Estate Markets ◽  
Long Run ◽  
Short Run ◽  
The Relationship ◽  
Local Stock ◽  
Domestic Stock

: This study revisits the relationship between securitized real estate and local stock markets by focusing on their time-scale co-movement and contagion dynamics across five developed countries. Since securitized real estate market is an important capital component of the domestic stock market in the respective economies, it is linked to the stock market. Earlier research does not have satisfactory results, because traditional methods average different relationships over various time and frequency domains between securitized real estate and local stock markets. According to our novel wavelet analysis, the relationship between the two asset markets is time–frequency varying. The average long run real estate–stock correlation fails to outweigh the average short run correlation, indicating the real estate markets examined may have become increasingly less sensitive to the domestic stock markets in the long-run in recent years. Moreover, securitized real estate markets appear to lead stock markets in the short run, whereas stock markets tend to lead securitized real estate markets in the long run, and to a lesser degree medium-term. Finally, we find incomplete real estate and local stock market integration among the five developed economies, given only weaker long-run integration beyond crisis periods.

scholarly journals Pricked by the Virus for good? Real Estate Bubbles and the Grand European Shutdown

2021 ◽  
Author(s):  
Marko Malović ◽  
Miloš Roganović ◽  
Mustafa Özer
Keyword(s):  
United Kingdom ◽  
Real Estate ◽  
Research Question ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Speculative Bubbles ◽  
The United Kingdom ◽  
The Real Estate Market ◽  
Real Estate Prices

Research Question: The objective of this particular piece of research was to evaluate the condition of the real estate market in the period preceding the pandemic outbreak. Motivation: Our goal was to determine whether real estate has been overpriced, i.e., whether and when speculative bubbles began to form and whether there were indications of their bursting. This paper brings together the need for discussing theories that can potentially explain the real estate market bubbles and boom-bust cycles (Gleaser &Nathanson, 2014) and the new approach which proved promising to detect the exuberance of economic and financial activities (Phillips, Shi &Yu, 2015). Potential collapse of real estate prices would have devastating effects and would likely cause a collapse of the financial system. Idea: The core idea of this paper was to evaluate whether speculative bubbles could be detected in the real estate market over the period immediately before the outbreak of the COVID-19 virus pandemic, and whether the pandemic or the financial crisis arising from it led to bursting of bubbles in this market and consequently brought their economies into even deeper crises. Data: Quarterly price movements were analyzed in the real estate market in six countries: Italy, Spain, the United Kingdom, Serbia, Croatia and Slovenia in the period Q1 1980 - Q4 2019 for Italy, Spain and the United Kingdom; Q1 2002 - Q4 2019 for Serbia and Croatia and Q1 2007 - Q4 2019 for Slovenia. Tools: Empirical analysis has been performed by utilizing generalized sub-augmented Dickey-Fuller (GSADF) test of unit roots for the detection and data stamping of bubbles in the real estate market in time series at hand. Findings: In conclusion, grand European shutdown and COVID pandemic apparently did not prick multiplicity of previously formed real estate bubbles, at least not for the time being. Moreover, in several developing countries with stunted financial markets, the virus may have somewhat paradoxically solidified real estate prices and even sustained a build-up of rational real estate bubbles. Contribution: This paper expands previous research on real estate bubbles and provides new insights into the initial consequences of the COVID-19 pandemic.

Integration between real estate and stock markets: new evidence from Pakistan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imran Yousaf ◽  
Shoaib Ali
Keyword(s):  
Real Estate ◽  
Stock Market ◽  
Stock Markets ◽  
Content Type ◽  
Real Estate Markets ◽  
The Real ◽  
The Real Estate ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Purpose This study aims to empirically examine the relationship between real estate and stock market of Pakistan. Design/methodology/approach The data of two real estate indices (house price index and plot price index) are taken for the Pakistan and its four big cities, i.e. Lahore, Karachi, Rawalpindi and Islamabad. It estimates the integration between series by applying the Johansen cointegration test. Moreover, the vector error correction model is applied to examine the short and long-run causal relationships between series. Findings The findings show that the real estate markets are cointegrated with the stock market. They imply that the real estate and stock markets are good substitutes in investment allocation, but investors cannot get the benefit of diversification by making a portfolio of real estate and stock markets in Pakistan. Moreover, the long-run causality is observed from majority house markets to the stock market, whereas short-run causality is evident from majority plot markets to the stock market. Hence, the real estate market leads the stock market in the short run and long run, suggesting the credit-price effect in the majority of real estate markets in Pakistan. These causality results are helpful for investors in the forecasting of real estate and stock markets in Pakistan. Research limitations/implications The limitation of the study is the lower number of observations (107), because house and land prices are only available in monthly frequency from January 2011 in Pakistan. Originality/value To the best of the authors’ knowledge, no researcher has investigated the real estate and stock market nexus in Pakistan. Therefore, this study focuses on examining the relationship between the real estate and stock market of Pakistan. The link between real estate and stock markets will provide useful insights to the portfolio managers, real estate companies, property agents, stockbrokers and investors.

scholarly journals SHIRYAEV-ZHOU INDEX – A NOBLE APPROACH TO BENCHMARKING AND ANALYSIS OF REAL ESTATE STOCKS

2012 ◽  
Vol 16 (2) ◽  
pp. 158-172 ◽  
Author(s):  
Eddie C. M. Hui ◽  
Sheung-Chi Phillip Yam ◽  
Si-Wei Chen
Keyword(s):  
Hong Kong ◽  
Real Estate ◽  
Stock Price ◽  
Real Estate Market ◽  
Selling Price ◽  
Real Estate Markets ◽  
The Real Estate ◽  
Index Changes ◽  
Preliminary Study ◽  
Definite Period

Real estate markets and real estate stocks are interrelated and are important not only to the investors, but also to the academics. Real estate stocks are, in a sense, good measures of performance of the physical real estate market. The objective of this paper is to provide a preliminary study on gauging the performances of real estate stocks in Hong Kong using the Shiryaev-Zhou index. Evidence shows that the Shiryaev-Zhou index can gauge a real estate stock's performance, good or bad, according to the sign of the Shiryaev-Zhou index. Thus a trading strategy can be formulated as follows: buy a stock if its Shiryaev-Zhou index changes from negative to positive, then hold it until its Shiryaev-Zhou index turns negative, when it is time to sell the stock. We examine the Shiryaev-Zhou indices of the real estate stocks in Hong Kong, and from this we deduce the latest best selling dates of the stocks during the period of our study. The Shiryaev-Zhou index could be an indicator of whether the market is bullish or bearish and consequently tells an investor to hold a stock or not, and it naturally leads to an optimal selling strategy that maximize the average ratio of the selling price to the maximum stock price when the underlying coefficients are assumed to be constant over a definite period of time.

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