International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 135-158
Author(s):  
Tien Foo Sing ◽  
Keyword(s):  
Stock Price ◽  
Housing Stock ◽  
Price Change ◽  
Housing Price ◽  
Housing Demand ◽  
Least Squares Regression ◽  
Demand Model ◽  
Labor Costs ◽  
Dummy Variable ◽  
Market Factors

This study examines economic and market factors that drive the demand, supply, and pricing of condominiums in Singapore using a 2-stage least squares regression methodology. This empirical study covers a sample period of 12 years from 1988 to 2000. The condominium housing demand model showed that GDP growth and the inflation rate had positive relationships with condominium demand one quarter ahead. However, demand for condominiums was negatively related to one-quarter lagged stock price change, two-quarter lagged condominium housing price change, lagged demand in the previous two quarters, and one-quarter lagged household formation. On the supply side, changes in last-quarter condominium housing stock, condominium commencement, the prime lending rate, and current and lagged-quarter labor costs would adversely affect developers?decisions to commence new condominium projects. In the condominium price model, the dummy variable used to test the effects of the government’s anti-speculation policies in May 1996, which increased the supply of residential lands and restricted the loan quantum to a limit of 80% of the housing price, was significant and positive. It implied that the policies were effective in dampening condominium prices by 0.32% per quarter for two consecutive quarters in 4Q1996 and 1Q1997.

scholarly journals MODELLING HOUSING SUPPLY AND MONETARY POLICY WITHIN THE CONTEXT OF GLOBAL ECONOMIC TURBULENCE

2013 ◽  
Vol 17 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Junxiao Liu ◽  
Kerry London
Keyword(s):  
Monetary Policy ◽  
Housing Stock ◽  
Housing Demand ◽  
Housing Supply ◽  
Policy Makers ◽  
Vector Error Correction ◽  
Global Context ◽  
Dummy Variable ◽  
Vector Error ◽  
Economic Climate

Housing supply is an essential component of the property sector. Compared with an increasingly strong housing demand, the growth rates of total housing stock in Australia have exhibited a downward trend since the end of the 1990s. Over the same period, the significant adjustments in the Australian monetary policy were being implemented under a turbulent global economic climate. This research aims to identify the relationship between housing supply and monetary policy within the context of global economic turbulence by a vector error correction model with a dummy variable. The empirical evidence indicates that the monetary policy changes and global economic turmoil can significantly affect the supply side of the housing sector in Australia. The models developed in this study assist policy makers in estimating the political impacts in the global context.

The Value of the Tax Deferral Option

2020 ◽  
pp. 0148558X2098021
Author(s):  
Nan-Ting Kuo ◽  
Cheng-Few Lee
Keyword(s):  
Stock Price ◽  
Price Change ◽  
Tax Rates ◽  
Trading Volumes ◽  
Tax Savings ◽  
Stock Dividends ◽  
Stock Dividend

This study explores the value of the tax deferral option. By examining ex-day stock-price-change ratios for taxable stock dividends in Taiwan, we find that the tax deferral option is valuable to investors. For a $1 taxable stock dividend, the tax deferral option produces 33.9 ¢ in tax savings, which suggests a tax deferral parameter of 11.3%. We also find that stocks with the tax deferral option have higher trading volumes around ex-days than those without this option, and that higher investor-level tax rates lead to higher value of the tax deferral option. We contribute to the literature by cleanly determining the value of the tax deferral option; our result is not confounded by the restart option.

scholarly journals EARLY 20TH-CENTURY WOODEN TENEMENT BUILDINGS IN ESTONIA: BUILDING BLOCKS FOR NEIGHBORHOOD LONGEVITY

2011 ◽  
Vol 35 (2) ◽  
pp. 110-116 ◽  
Author(s):  
Daniel B. Hess
Keyword(s):  
World War I ◽  
Built Environment ◽  
20Th Century ◽  
Transition Period ◽  
Housing Stock ◽  
Building Blocks ◽  
Urban Housing ◽  
Housing Demand ◽  
Early 20Th Century ◽  
Art Nouveau

During the early 20th century, the urban housing supply in Estonia expanded quickly to meet growing housing demand, resulting in tenement districts conceived for maximum profitability of rental units. In Karlova, a district near the city center of Tartu, about five hundred wooden houses, built between 1911 and the early 1920s and displaying simple Art Nouveau details, are set amid a charming district with a distinct milieu. This article focuses on three time periods during which the development of its built environment gave Karlova its distinctiveness: (1) the years leading up to World War I; (2) the interwar period; and (3) the two decades since 1991, or the post-transition period. Although the district was neglected during the Soviet era, it remains remarkably intact and has even experienced, since the 1990s, gentrification. The high-quality housing stock and charming built environment has much to offer to its diverse population of students, professionals, families, and longtime residents. Santrauka Dvidešimtojo amžiaus pradžioje gyvenamųjų namų pasiūla Estijoje greitai augo atitikdama į augančius gyvenamojo ploto poreikius. Minėtos situacijos rezultatas - daugiabučių namų kvartalai sukurti taip, kad iš nuomojamų patalpų būtų gaunamas maksimalus pelnas. Karlova – kvartalas netoli Tartu centro. Jį sudaro apie penki šimtai medinių namų, pastatytų tarp 1911 ir 1920 metų. Pastatams būdingos paprastos Art Nouveauarchitektūrinės detalės, jie pastatyti išskirtinėje patrauklioje aplinkoje. Pateikiamame straipsnyje nagrinėjami trys laikotarpiai, per kuriuos užstatymo kaita aptariamoje teritorijoje sukūrė išskirtinį jos tapatumą: 1) laikotarpis iki Pirmojo pasaulinio karo; 2) tarpukaris; 3) du dešimtmečiai po 1991 m. Nežiūrint to, kad sovietiniais metais teritorija buvo nesaugoma ir ja nesirūpinama, Karlova išsaugojo nepažeistą architektūrinį urbanistinį vientisumą, o po 1990 m. teritorijoje prasidėjo gentrifikacijos procesai. Aukštos kokybės gyvenamasis užstatymas ir žavi urbanistinė aplinka gali daug pasiūlyti įvairioms gyventojų grupėms: studentams, profesionalams, šeimoms ir vyresnio amžiaus žmonėms.

Estimating defaults in organized security lending markets

2016 ◽  
Vol 24 (3) ◽  
pp. 343-362
Author(s):  
Latif Cem Osken ◽  
Ceylan Onay ◽  
Gözde Unal
Keyword(s):  
Credit Risk ◽  
Stock Returns ◽  
Stock Price ◽  
Price Volatility ◽  
Equity Market ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Content Type ◽  
Central Counterparties ◽  
Risk Determinants

Purpose This paper aims to analyze the dynamics of the security lending process and lending markets to identify the market-wide variables reflecting the characteristics of the stock borrowed and to measure the credit risk arising from lending contracts. Design/methodology/approach Using the data provided by Istanbul Settlement and Custody Bank on the equity lending contracts of Securities Lending and Borrowing Market between 2010 and 2012 and the data provided by Borsa Istanbul on Equity Market transactions for the same timeframe, this paper analyzes whether stock price volatility, stock returns, return per unit amount of risk and relative liquidity of lending market and equity market affect the defaults of lending contracts by using both linear regression and ordinary least squares regression for robustness and proxying the concepts of relative liquidity, volatility and return constructs by more than variable to correlate findings. Findings The results illustrate a statistically significant relationship between volatility and the default state of the lending contracts but fail to establish a connection between default states and stock returns or relative liquidity of markets. Research limitations/implications With the increasing pressure for clearing security lending contracts in central counterparties, it is imperative for both central counterparties and regulators to be able to precisely measure the risk exposure due to security lending transactions. The results gained from a limited set of lending transactions merit further studies to identify non-borrower and non-systemic credit risk determinants. Originality/value This is the first study to analyze the non-borrower and non-systemic credit risk determinants in security lending markets.

scholarly journals Potential Implementation of Lightweight Steel Panel System in Affordable Housing Project: Developers Perspective

2020 ◽  
Vol 11 (3) ◽  
Author(s):  
Misriyanti Saikah ◽  
◽  
Narimah Kasim ◽  
Rozilah Kasim ◽  
◽  
...  
Keyword(s):  
Construction Industry ◽  
Affordable Housing ◽  
Housing Price ◽  
Housing Demand ◽  
Housing Quality ◽  
Housing Construction ◽  
Housing Project ◽  
Middle Income ◽  
Steel Panel ◽  
Lightweight Steel

Utilization of Industrialized Building System (IBS) becomes increasingly dominant in the construction of affordable housing in Malaysia. Theoretically, utilization of IBS system can benefit to reduce the affordable housing price due to the less labor involvement and short constructions time. However, current IBS usage in housing construction still cannot fulfill the affordable housing demand especially in term of price and housing quality. Recent study reveals the lack adoption of IBS component in construction industry mainly caused by poor perception among stakeholder toward the system. Hence, some alterations in the supply of the IBS component essential to being prepared in order to reach the price target to permit all middle-income groups to own the quality house. Construction industry also can explore the other types of IBS system focusing on lightweight types such as wood or steel system which clearly could give benefit to the housing industry on faster works and high housing quality. Due to strong and durable characteristic of lightweight steel panel, it can be seen as an alternative component to be explored to enhance construction practices of affordable housing project. Therefore, the main purpose of this study is to identify the potential of lightweight steel panel system to be implemented for affordable housing project. Accordingly, for the highlight in reducing affordable housing price integrate with provision of good quality housing this research focus on feedback from developer about the proposed lightweight steel panel system. This research conducted an interview with six project managers with more than three years working experience in housing construction project at South of Peninsular Malaysia. Developer’s experience in affordable housing project mainly for landed house is coinciding because of lightweight steel panel system suitability for not more than two stories house. The result reveals that, respondent prefer to the advantages of lightweight steel panel system in term of faster installation works, low maintenance work, flexibility and smart construction. In conclusion, the ability of the system to decrease housing price at the same time sustain the desired quality of housing will increase ability and satisfaction for middle-income earner to own the house.

scholarly journals Did the COVID-19 Pandemic Crisis Affect Housing Prices Evenly in the U.S.?

2021 ◽  
Vol 13 (21) ◽  
pp. 12277
Author(s):  
Xinba Li ◽  
Chuanrong Zhang
Keyword(s):  
Real Estate ◽  
Spatial Patterns ◽  
Price Change ◽  
Housing Prices ◽  
Housing Price ◽  
Real Estate Market ◽  
Moran’S I ◽  
Moran's I ◽  
Price Changes ◽  
The U.S

While it is well-known that housing prices generally increased in the United States (U.S.) during the COVID-19 pandemic crisis, to the best of our knowledge, there has been no research conducted to understand the spatial patterns and heterogeneity of housing price changes in the U.S. real estate market during the crisis. There has been less attention on the consequences of this pandemic, in terms of the spatial distribution of housing price changes in the U.S. The objective of this study was to explore the spatial patterns and heterogeneous distribution of housing price change rates across different areas of the U.S. real estate market during the COVID-19 pandemic. We calculated the global Moran’s I, Anselin’s local Moran’s I, and Getis-Ord’s statistics of the housing price change rates in 2856 U.S. counties. The following two major findings were obtained: (1) The influence of the COVID-19 pandemic crisis on housing price change varied across space in the U.S. The patterns not only differed from metropolitan areas to rural areas, but also varied from one metropolitan area to another. (2) It seems that COVID-19 made Americans more cautious about buying property in densely populated urban downtowns that had higher levels of virus infection; therefore, it was found that during the COVID-19 pandemic year of 2020–2021, the housing price hot spots were typically located in more affordable suburbs, smaller cities, and areas away from high-cost, high-density urban downtowns. This study may be helpful for understanding the relationship between the COVID-19 pandemic and the real estate market, as well as human behaviors in response to the pandemic.

Assessing Low-Cost Housing Demand in Melaka: PLS-SEM Approach

2013 ◽  
Vol 838-841 ◽  
pp. 3156-3162 ◽  
Author(s):  
Noor Yasmin Zainun ◽  
Nadzirah Roslan ◽  
Aftab Hameed Memon
Keyword(s):  
Low Income ◽  
Goodness Of Fit ◽  
Housing Stock ◽  
Low Cost ◽  
Great Influence ◽  
Economic Factor ◽  
Housing Demand ◽  
Factors Affecting ◽  
Low Cost Housing ◽  
The Government

Housing is one of the basic needs of human. Population in Malaysia is increasing and expected to reach up to 35 million in year 2020. This phenomenon creates high demand for housing. To tackle the squatter problems, the government introduces low-cost housing. Low cost house is known as the government house, where the price is cheaper but still comfortable. Although there are many of low-cost housing projects have been completed to cope with the need of the citizen especially for low-income group. However, census report reveled that these is huge demand of low-cost housing. This demand might be because of various factors which are very essential to identify in order to meet the required demand of low cost houses. Hence, this study is carried out to assesse the demand of low cost housing in Melaka, determine the significant factors affecting demand of low-cost housing, and establish PLS-SEM model for assessing factors affecting low-cost housing demand. In this study, data are collected by distributing questionnaire in Melaka state. The collected data from survey was analyzed using statistical software SPSS and presented in graphs and chart. Further, factors affecting low cost housing demand in Melaka were modeled with the SmartPLS v2.0. The model shows the relationship between low cost housing demand and its indicators. The finding of the study showed that most significant indicators affecting the demand of low-cost housing in Melaka are the economic factors which include housing stock, inflation rate and Gross Domestic Products (GDP). The Goodness of Fit showed that the model has substantial explaining power for the assessing factors affecting low cost housing demand in Melaka which the values is 0.481. This means that the economic factor has a great influence on the low-cost housing demand in Melaka.

Is HOA capitalized in housing price? Evidence from Chongqing, China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Deng
Keyword(s):  
Telephone Survey ◽  
Empirical Finding ◽  
Housing Price ◽  
Data Set ◽  
Chinese Cities ◽  
Content Type ◽  
Dummy Variable ◽  
Homeowners Association ◽  
Private Communities ◽  
Different Sources

Purpose International research has found that Homeowners Association (HOA) is capitalized in housing price in the West. Is that result applicable in Chinese cities? In China there is also widespread applause for HOA. Will that leave trail in the housing market? This paper aims to answers these questions by presenting empirical evidence from 113 private gated communities in Chongqing, China. Design/methodology/approach The data set comes from three different sources including a telephone survey. The research methodology includes hedonic models with an endogenous dummy variable of the presence of HOA in a community. Findings HOA is not capitalized in housing price. Research limitations/implications The empirical finding helps to explain why about 80% of private communities in big Chinese cities have not formed an HOA. Originality/value This is the first empirical study on HOA capitalization in housing price in China.

International Real Estate Review

2002 ◽  
Vol 5 (1) ◽  
pp. 133-145
Author(s):  
Wen-chieh Wu ◽  
◽  
Sue-Jing Lin ◽  
Keyword(s):  
Standard Error ◽  
Housing Price ◽  
Demand Estimation ◽  
Housing Demand ◽  
Group Effect ◽  
Group Level ◽  
Random Group ◽  
Elasticity Of Demand ◽  
The Us ◽  
Income Elasticity Of Demand

This paper examines the random group effect, which has usually not been considered in traditional housing demand studies. Frequently, group level variables are used in housing demand estimation due to the data constraint. For instance, the US Index of Housing Price per administrative area is often used to measure the housing price when estimating the US price elasticity of demand for housing, and the average household income is often used as a proxy for the individual income in Taiwan when estimating the income elasticity of demand for housing. Econometricians argue that the traditional OLS estimation, when the random group effect is ignored, has been considered to have a downward bias in the estimated standard error. By following Amemiya (1978) and Borjas and Sueyoshi (1994), we propose a two-stage estimation technique to estimate housing demand with the random group effect. Using Taiwan’s cross-sectional survey data, we found that the standard error of the estimated coefficient for the group level income variable is underestimated in the traditional unadjusted OLS specification. This finding suggests that there may be a danger of spurious regression in the traditional OLS housing demand estimation.

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