COVID-19 pandemic and the Philippine real estate property cycle: indications of bubble and burst in the “new normal”?

The Philippines has been one of the countries greatly affected by the COVID-19 pandemic. The country is regarded to be under the world's longest lockdown with an upsurge of cases, and it has also entered into an official recession with record-breaking economic contraction and high unemployment rates, fueling economic uncertainties. These macroeconomic indicators show serious signs of the adversities of the pandemic affecting the real estate development sector. As the real estate sector recalibrates its plans on response, recovery, and resiliency, this paper attempts to provide empirical evidence on the celebrated model in real estate economics proposed by Homer Hoyt and later developed by Glenn R. Mueller: the property cycle. We also provide contextualization on the property cycle empirics under the pandemic, given the sector’s reintroduction of the Real Estate Investment Trust (REIT). We argue that the REIT mainly supports the real estate development industry given the adversities of the pandemic and its accompanying recession, as well as an update to the long-term plans of the industry and its players in compliance with the “new normal”.

Perceptions of Academics on Real Estate Topics in Africa

This paper presents the perceptions of academics on real estate topics offered in Bachelors Real Estate (BRE) curricula in Africa. In order to understand the perceptions of academics on real estate topics, a survey of seven selected BRE curricula offered in different regions of Africa was conducted to determine important real estate topics academics included in the curricula. After analyzing the curricula, sorting and re-grouping the topics: Real estate management, Real estate valuation, Real estate economics, Real estate finance and investment, Real estate development, Real estate law, Real estate planning, Real estate research, Real estate industrial training and Real estate electives emerged to be important topics the academics considered to include in the curricula. The topics are in line with those expected in a real estate curriculum. In addition, results revealed that BRE curricula follow the interdisciplinary approach to real estate education. Findings will encourage universities in Africa and elsewhere to develop comprehensive real estate curricula or improve existing ones to accommodate the interdisciplinary approach and the international perspective of real estate education because of their benefits. The study will also support the harmonization of real estate education, practice, investment and business in Africa, hence contributing towards the economic development of the continent.

Methodological Solutions for the Implementation of Multi-Apartment Buildings Management and Administration Processes in the Context of Housing Policy

The Doctoral Thesis “Methodological solutions for the implementation of multi-apartment building management and administration processes in the context of housing policy” is an independent scientific study developed in the Department of Building Entrepreneurship and Real Estate Economics of Institute of Building Entrepreneurship and Real Estate Economics, Riga Technical University. The scientific supervisor of the Doctoral Thesis is Professor Dr. Oec. Ineta Geipele. The objective of the Doctoral Thesis is to develop a methodological solution for the implementation of the information exchange system processes of housing policy and multi apartment building (MAB) management and administration activities with the scope to improve economic, strategic planning processes of the state and municipal companies, as well as building management companies. The Doctoral Thesis consists of Introduction, three parts, nine chapters, four sub-chapters, conclusions, proposals, a list of literature and sources used, and 23 appendices. The introduction of the Doctoral Thesis comprises a description of the topicality of the chosen theme, hypothesis of the research, defined goals of the study and tasks to achieve them, the object and subject of the research, methodological description of the research, restrictions, theoretical significance and scientific novelty of the research, as well as approbation and practical application of the research results. In Part I of the Doctoral Thesis, theoretical aspects of planning of the MAB management and administration process are analysed. Within the framework of Part II, an analytical evaluation of problems with regard to the MAB management and administration process is presented. Part III presents the results of the study of interrelation between the housing policy and the MAB management and administration process impact indicators and proposes a methodological solution for the improvement of mutual information flow of the housing policy and MAB management and administration. In the conclusion of the Doctoral Thesis, conclusions and proposals for the solutions of the improvement of information flow for planning of the housing policy and MAB management and administration processes are provided.

Estimating Bargaining Power in Real Estate Pricing Models: Conceptual and Empirical Issues

The relative bargaining power of the buyer and seller is a key feature of real estate pricing models. Classic real estate studies have sought to address bargaining effects in hedonic regression models. Prior research proposes a procedure to estimate bargaining effects in hedonic regression models that depends critically on a substitution to eliminate omitted variables bias. This study shows that the proposed solution that is often cited in the real estate economics literature does not solve the omitted variables problem given that both models are merely different parameterizations of the same model, and thus produces biased estimates of bargaining power when certain property characteristics are omitted. A classic hedonic regression model of real estate prices using Corsican apartment data supports our contention, even when the assumption of bargaining power symmetry is relaxed.