scholarly journals The dangerous ineffectiveness of negative interest rates: the case of Switzerland

2019 ◽  
Vol 7 (2) ◽  
pp. 220-232 ◽  
Author(s):  
Sergio Rossi
Keyword(s):  
Interest Rates ◽  
Real Estate Market ◽  
Negative Consequences ◽  
Housing Crisis ◽  
Economic Activities ◽  
The Real Estate ◽  
Negative Interest Rates ◽  
The Real Estate Market ◽  
National Bank ◽  
Better Than

This paper argues that the negative interest rate adopted by the Swiss National Bank in 2015 has elicited a series of negative consequences across the Swiss economy. It has led an increasing number of agents to invest their savings in the real-estate market, whose prices have overheated, threatening the eruption of a housing crisis. It has also induced a number of financial institutions to turn to riskier businesses in an attempt to continue to earn some returns, thereby increasing financial fragility at systemic level. The paper suggests that a small Tobin tax on all Swiss-franc purchases may contribute to the support of domestic economic activities much better than negative rates of interest.

scholarly journals Price Bubble In The Real Estate Market - Behavioral Aspects

2014 ◽  
Vol 22 (1) ◽  
pp. 77-90 ◽  
Author(s):  
Justyna Brzezicka ◽  
Radosław Wisniewski
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Herd Behavior ◽  
Negative Consequences ◽  
The Real ◽  
The Real Estate ◽  
Price Bubbles ◽  
Price Bubble ◽  
The Real Estate Market ◽  
Behavioral Aspects

Abstract The article pertains to the topic of speculative price bubbles which arise in the real estate market. The individual parts of the article deal with the connection between the price bubble in the American real estate market and the global economic crisis, defining the concept of a price bubble with regard to the behaviors of market participants, providing a description of the environment generating price bubbles, and systematizing the reasons behind the formation of price bubbles. The analysis of behavioral aspects accompanying the existence of a price bubble is a key issue. The assumed considerations indicate that the housing price bubble could not exist in the real estate market (REM) if its formation was not accompanied by behavioral aspects. These aspects include, among others, giving in to temptations and emotions, limited rationalism, herd behavior, and seeking to make profits in a short amount of time at the expense of long-term negative consequences. The nature of these deliberations is theoretical.

scholarly journals Exchange Rate Risk On The Mortgage Market

2015 ◽  
Vol 23 (4) ◽  
pp. 74-84
Author(s):  
Ewa Siemińska ◽  
Małgorzata Krajewska
Keyword(s):  
Exchange Rate ◽  
Real Estate ◽  
Financial Market ◽  
Real Estate Market ◽  
Exchange Rate Risk ◽  
Currency Risk ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
National Bank

Abstract Strict connections of the real estate market with the financial market are an unquestionable phenomenon at every level of investing, starting from the lowest individual investor, and finishing with national and transnational players. One of the more interesting examples of such a dependency is the problem of the risk of financing the real estate market, which results from numerous macro-, mezo- and microeconomic conditions, including, inter alias, the phenomenon of capital migration, supranational bank regulations or the development of currency exchange rates on world markets. The most recent example of such a dependency is, among others, the decision of the National Bank of Switzerland from the beginning of 2015 to abandon the Swiss franc-euro cap, which will go down in the history of the world financial market. Its global effects will surely be very difficult to assess, while the resulting turbulences and consequences for many (institutional, corporation and individual) market participants cause, on the one hand, awaiting a reaction and actions aimed at helping entities affected by the consequences of the mentioned decision and, on the other, many questions and doubts. The paper will present current selected aspects concerning currency risk in the context of financing the residential real estate market and the directions of actions prepared in reaction to the abovementioned risk. Polish conditions will be presented against the background of examples of foreign solutions. The aim of the work is to present: the essence of currency risk in the context of the current financial situation of the Polish banking sector, the most important directions of proposals for remedial actions aimed at mitigating the effects of the significant increase in the exchange rate of the Swiss franc in relation to the Polish currency, a short overview of selected solutions/regulations regarding the exchange rate risk of mortgages taken out in a foreign currency in other countries. The method employed was the critical analysis of the most-recent reports and recommendations of the National Bank of Poland, Polish Financial Supervision Authority, Polish Banking Union, and other experts on the subject of financing the real estate market, as well as a comparative analysis of solutions regarding currency risk in selected countries.

The Role of Women in the Urban Economy of Istanbul, 1700–1850

2001 ◽  
Vol 60 ◽  
pp. 141-152 ◽  
Author(s):  
Fariba Zarinebaf-Shahr
Keyword(s):  
Nineteenth Century ◽  
Real Estate ◽  
Textile Industry ◽  
Urban Economy ◽  
Real Estate Market ◽  
Economic Activities ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Role Of Women

This article examines the role of women in manufacturing and the urban economy of Istanbul during the premodern period. It shows that Ottoman women engaged in a variety of economic activities, and invested in the real estate market. They participated in the textile industry of Bursa, Ankara, and Istanbul as weavers, dyers, and embroiderers. Their labor, however, remained marginal to artisanal production through the guilds. Very few women were accepted into the guilds. They were hired by the putting-out merchants to produce secretly at home. Their input to manufacturing increased in the second half of the nineteenth century when the guilds were losing their monopoly over production.

Building sales: advertising and the property market

2018 ◽  
pp. 168-207
Author(s):  
Conor Lucey
Keyword(s):  
Nineteenth Century ◽  
Real Estate ◽  
Real Estate Market ◽  
Property Market ◽  
Economic Activities ◽  
Luxury Goods ◽  
The Real Estate ◽  
The Real Estate Market ◽  
House Building

Having examined the building and decorating of the urban house, this chapter explores how the artisan approached marketing and selling real estate. As the first sustained analysis of property advertising in the eighteenth and early nineteenth-century Atlantic world, this chapter first considers how regional variations and social demographics (aristocratic audiences in London and Dublin compared with merchant audiences in Boston and Philadelphia) dictated the form and content of property notices, reflecting on issues such as location, quality of structural and decorative finish, convenience, and decorum. But while house-building and house-selling were principally economic activities, representing the motivating force for building mechanics to enter the real estate market, the evidence from property advertisements reveals that builders were cognizant of the semantics of advertising rhetoric and employed a vocabulary that emulated that of auctioneers, luxury goods manufacturers and other polite retailers.

Mobilitŕ urbana e scelte residenziali: un'analisi economica

2009 ◽  
pp. 71-87
Author(s):  
Marina Bravi ◽  
Sergio Giaccaria
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Real Estate Market ◽  
Housing Affordability ◽  
Urban Mobility ◽  
The Real Estate ◽  
Economic Segregation ◽  
The Real Estate Market ◽  
Very High ◽  
Economic Improvement

- This study explores the intricate relationships between urban mobility, residential choices (rent or ownership) and economic levels of housing affordability of the demand. During the residential changing, the families consider simultaneously many factors, both economic and territorial, that affect their decision. This research highlights as, in a situation characterized by very high prices and very important levels of the interest rates, the expectations of the economic improvement of the households are frustrated; the anomalies in the real estate market (rent and ownership) result, at the urban scale, in a sort of stoc s, as well as, economic segregation.Key words urban mobility, housing affordability, residential choices.Parole chiave: mobilitŕ urbana, accessibilitŕ ai servizi abitativi, scelte residenziali.

scholarly journals Management of the Real Estate Market in Vietnam with Lessons from Poland

2018 ◽  
Vol 6 (6) ◽  
Author(s):  
Vu Ngoc Xuan
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Real Estate Market ◽  
Lessons Learned ◽  
Debt Ratio ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Per Capita ◽  
Bad Debt

Vietnamese economy in the year 2017 reached a GDP growth rate of 6.81%, inflation was controlled at 3.53%. According to Prime Minister Nguyen Xuan Phuc, Vietnam's economy has overcome many difficulties with the recovery and higher growth. In 2017, the size of the GDP economy will be about $ 220 billion, GDP by purchasing power parity - PPP $ 600 billion, per capita GDP of $ 2,385, and GDP per capita PPP is 6,000 US dollars. As predicted by the General Statistics Office, Vietnam's GDP in the next two years is expected to increase by 6.8%, and 7%. The exchange rate between the Vietnamese dong and foreign currencies such as the US dollar, the yen and the euro remains stable, while a trade surplus of $ 2.67 billion in 2017, slightly up from $ 2.52 billion US surplus in 2016. In addition to the macroeconomic highlights, Vietnam's economy faces challenges due to bad debt from the decline of the real estate market in the past, the bad debt ratio The banking system is high with interest rates falling but still at high levels, many businesses still find it difficult to mobilize business capital. At present, the drastic direction in the direction and management of the State Bank, the birth of the company VAMC recently brought the bad debt ratio of banks to an average of less than 5%. In this article, the author discusses the lessons learned from the management of the real estate market in Poland to provide a number of measures to increase liquidity in the real estate market in Vietnam economic growth in the future.

scholarly journals Contorno Norte: reflexos da obra sobre o Conjunto Habitacional Requião em Maringá, PR, Brasil

Terr Plural ◽  
2019 ◽  
Vol 13 (3) ◽  
pp. 296-312
Author(s):  
Tatiana Kaori Abe ◽  
Priscilla Borgonhoni Chagas
Keyword(s):  
Real Estate Market ◽  
Decision Making Process ◽  
Negative Consequences ◽  
Popular Participation ◽  
The Real Estate ◽  
Government Growth ◽  
The Road ◽  
The Real Estate Market ◽  
Housing Complex ◽  
The Government

This study analyzed the effects of Contorno Norte settlement for residents of the Requião Housing Complex in the medium city of Maringá, applying resources from the government Growth Acceleration Program (PAC). The road intervention had negative consequences for the neighborhood since there was a change in the initial project. Delays in execution, lack of adaptability to local transformations, and non-popular participation in the decision-making process about the construction of the work, as dictated by the law for high-impact works, are pointed as aspects resulting from the construction of the Contour. The work was more related to the interests in creating new spaces for the real estate market and to favor projects designed by the Government.

scholarly journals Real estate boom in Chile and fundamentals on house prices

2020 ◽  
Vol 6 (1) ◽  
pp. 1-26
Author(s):  
C. Aguilera Alvial
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Structural Breaks ◽  
House Prices ◽  
Housing Prices ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Integration Test ◽  
The Real Estate Market

This article studies the fundamentals of housing prices based on the Real Index of Housing Prices (IRPV), given that in recent times in Chile there has been a sustained increase in price levels and seeks to find evidence on the existence of a possible speculative bubble in the real estate market. Following the methodology of various Chilean and international authors, the Engle & Granger Co-integration methodology was applied. Furthermore, the results of the previous methodology were compared using the Johansen Co-integration test. Then a method to find structural breaks is applied. As a result, evidence is found to not reject the existence of a bubble in the real estate market. It is found that only interest rates co-integrate in the long term with the evolution of house prices, while the other fundamentals present a spurious relationship.

scholarly journals Evaluation of prefabricated blocks of flats through the Real estate market point of view

2014 ◽  
Vol 13 (3) ◽  
pp. 057-064
Author(s):  
Jacek Zyga
Keyword(s):  
Statistical Significance ◽  
Real Estate Market ◽  
Point Of View ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Average Unit ◽  
Student’S T ◽  
The City ◽  
Better Than ◽  
Student’S T Test

The market of flats located in buildings of prefabricated blocks in Lublin, on the background of the rest of flats, is described in presented essey. The analysis of the variables included in the unit prices of flats (from the period of the years 2005-2013), located in multi-family blocks, completion of which was contained in the years 1962-1991 and the design was a variant of construction of prefabricated elements or another. Comparative analysis was performed separately for separate zones as well as for the city of Lublin. The comparison of transactions in the whole of the city showed that in most of the periods compared, average unit prices of flats, located in prefabricated buildings, remained higher than other. On the other hand, during the year 2004 and for the years 2011-2013 (separately in different years), the average unit prices of flats in prefabricated buildings happened to be lower than the average prices of other premises. Statistical significance of differences between average unit prices in parallel subgroups (prefabricated buildings vs. buildings realized in other technologies) has been tested with Student's t-test. The comparison of two mentioned market segments demonstrates their small diversity, proving that the market evaluation of usefulness and safety of flats located in buildings of prefabricated blocks is different and much better than the evaluations of constructors.

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