Property Investment Research Articles

Housing Property Investment Opportunity in Malaysia: Things that New Investor Should Know

Housing Property Investment Opportunity in Malaysia: Things that New Investor Should Know

Effectiveness of rent recovery strategies on residential real estate in Ibadan, Nigeria

PurposeThe upward rise of the prolonged payback period and the inability of the project to generate estimated income that has been linked with the irregular rent payments has been a major problem confronting real estate investment. Given the fact that real estate investment is a risky investment venture with a highly uncertain future stream of income, this paper examines the effectiveness of rent recovery strategies in the emerging Nigeria residential real estate practice.Design/methodology/approachThe study employed an exploratory research design. The study identified the five recovery strategies adopted by the estate surveying and valuation firms in Ibadan Metropolis, Nigeria. The study adopts a purposive sampling method to select 52 registered estate firms in the study area and a questionnaire using a five-point Likert scale was used to elicit information. The data obtained were analyzed using descriptive and inferential statistics.FindingsThe result showed that the rent recovery strategies adopted by the respondents include email approach, rent reminder notice, adequate maintenance, eviction notice and dialogue approach. The perceived top-rated strategies that could influence estimated income were dialogue and rent reminder notice. Also, the findings showed the factors that influence the choice of strategy are property type, company policy and the proportion of rent to the tenant's income.Practical implicationsThe study has an implication for real estate investors and property practitioners regarding the willingness of the investors to invest in real estate investment.Originality/valueThis paper is relevant given the fact that the rental property market is prone to risk that could impede the regular streamflow of income. This serves as a need for examination of the effectiveness of adopted rent recovery strategies as it relates to real estate property management practice and investment viability.

Real Estate Insights Property development activities: value creation or distraction for REITs?

PurposeThis paper examines the evolution and impact of property development activities on REIT performance. The paper provides insights on whether REITs should venture into property development in addition to their core-business of holding income producing properties.Design/methodology/approachThis paper charts and highlights the evolution of development activities of US REITs from 1992 to 2020. The Tobin's Q of property developing REITs and non-property developing REITs are compared using univariate analysis.FindingsDevelopment activities of US REITs grew dramatically during the run up to global financial crisis (GFC) in 2008. The level of development activities has dropped since the GFC and it has not return to its pre-crisis peak. In comparison, development activities of listed property investment companies and homebuilders are less volatile over the same period. The data reveals that property developing REITs enjoy significantly higher Tobin's Q as compared to their non-developing counterparts.Practical implicationsOur graphical evidence from a market without development restriction suggests that development restriction in other REIT regimes has it value in limit REITs' excessive risk-taking tendency during a booming property market. The positive relationship between Tobin's Q and the existence of property development activity support the value creation of this business activity to REITs.Originality/valueThis paper raises overbuilding as a potential cause of the underperformance of the REIT sector during the GFC.

Hunting the standard of compensation – intellectual property, Chorzów Factory and investments: a response

While the debate on intellectual property and international investment law is relatively young, the role of historical cases will be important in offering some interpretative analysis. Due to the niche nature of both areas of law, where, often times, the legal luminaries found in both areas often speak past each other, in an earlier issue of this journal I offered an interpretative history of Chorzów Factory as an example of early case law by an international court illustrating the origins of the ISDS involving intellectual property. As with any interpretation, there are bound to be opposing views or explicit endorsement, but whatever the merits, that interpretative history has initiated a debate in the pages of this journal. That debate is in part, a response to my original analysis, to which I offer a response. This response is to endorse the fact that additional information has come forward that will enrich the debate on Chorzów Factory and its connection to intellectual property. Moreover, this response argues that the reply misses the point regarding the formal connection of international law to intellectual property in ISDS, a connection that I attempted to demonstrate through the example of the Chorzów Factory case – where a legal fight in the 1920s over nitrate, other chemical production and ownership still continue to be of relevance to international law.

Making the Museum Dance: Simone Forti’s Huddle (1961) and its Acquisition by the Museum of Modern Art

In 2015, Simone Forti’s Dance Constructions, a group of understated, equipment-based performances from 1960–1961, entered the permanent collection of the Museum of Modern Art in New York (MoMA) as the museum’s first acquisition of historical dance works. This essay details Forti’s arrangements with MoMA for the Dance Construction Huddle, which complicated the already complicated proposition of how to collect and care for dances in a visual art institution. Examined closely, the acquisition process reveals both how the museum transformed Forti’s work and how Huddle—and dance more generally—presses back on the institution and its investments in objecthood, singular authorship, and private property.

INTERNAL AUDIT AND CORPORATE GOVERNANCE IMPACT AT THE REAL ESTATE INDUSTRY IN GREECE AND THE UK

The purpose of this paper is to examine the importance of Corporate Governance and Internal Audit at the Real Estate, Investment Properties and Construction sector in Greece and the United Kingdom. We conducted a survey to a large number of Greek and UK publicly listed firms operating at the Real Estate Sector based on their turnover and the accessibility of data such as numbers of employees and Internal Audit Department Structures. Specifically, we distributed a large number of structured questionnaires to Audit Committee and Internal Audit members to assess the impact of Corporate Governance best practices and Internal Audit operations at the Real Estate Industry. Our conclusion was that Internal Audit and Corporate Governance play a significant role to the Real Estate industry as they are positively associated with the sustainable development of the Real Estate Industry. Moreover, improved Corporate Governance and Internal Audit is associated with less development costs.

Primena principa konzervativizma nasuprot primeni koncepta fer vrednosti - primer srpskog tržišta kapitala

The characteristic of striving towards the application of the new valuation concept, as opposed to the application of traditional accounting principles, modern financial reporting prompted the authors of this paper to address the importance of the application of traditional accounting principles, especially the principle of prudence (conservatism), and the concept of fair value for the accounting information relevance. The most important business decisions in the entity are made on the basis of information produced by the accounting information system, based on which we see how important it is for this information to be up to date. The relevance of the information of the accounting system of first-class importance is the basis of evaluation, which is the subject of research in this paper. More precisely, the paper examines the methods of measurement after initial recognition of fixed assets on the example of a group of business entities operating on the Serbian capital market. The results of empirical research are of a twofold nature. Namely, for measurement after initial recognition of intangible assets, plant and equipment, as well as other property, plant and equipment, the concept of historical cost and the traditional accounting principles immanent to it are primarily used. For measurement after initial recognition of buildings, land, investment property and biological assets, the concept of fair value is more often used. In other words, using a practical example, we have shown that the combined basis of financial reporting is the dominant feature of modern financial reporting of entities operating in the Serbian capital market.

Graph Convolutional Network-Based Model for Megacity Real Estate Valuation

It is challenging to make precise assessments of real estate prices due to its elevated individual prices, complicated influencing factors, and ambiguous attribute selection. As a result of the high demand for owner-occupied and investment properties, real estate is also a substantial concern for society. How to accurately evaluate its price has been a hot issue for research by major institutions. Real-world applications of real estate valuation impose stringent requirements on the acquisition of datasets and the generalizability of models. On the basis of SRGCNN, a spatial regression model with excellent generalizability, this paper introduces an external attention mechanism to construct the A-SRGCNN model and compares it to the benchmark model utilizing data from Shanghai, Melbourne, and San Diego. For spatial regression, A-SRGCNN employs graph convolutional neural networks, and the external attention mechanism implicitly considers the relationship between property data. Experiments indicate that the A-SRGCNN model outperforms the benchmark model and has improved real estate price estimation accuracy. In the meantime, this paper employs the A-SRGCNN model to conduct zonal experiments and time-division experiments on the secondary real estate market in Shanghai to analyze the real estate price linkages between different zones and the real estate price linkages at different times. It is revealed that Shanghai real estate prices exhibit spatial aggregation and price aggregation, with comparable prices within the same zones, and that the A-SRGCNN model is effective at predicting house prices.

The Small Investors in Rental Property: A Socioeconomic and Financial Analysis

The Small Investors in Rental Property: A Socioeconomic and Financial Analysis

Intellectual Property Investment Functions and the Legal Characteristics of Privatization

Intellectual Property Investment Functions and the Legal Characteristics of Privatization

Influence of buildability assessment at design phase in real estate investment in Port Harcourt, Nigeria

Buildability assessment is an important aspect of real estate investment, as occasioned by the high cost of land and building materials. This study examined the influence of buildability assessment at design phase in real estate investment in Port Harcourt, Nigeria; to determine and minimize wasted effort before real estate investment commencement. This study adopted descriptive survey with a total number of 340 well-structured questionnaires distributed to clients, contractors and professionals; out of which 221 were retrieved representing 65% response rate. Data collected was analysed using descriptive and inferential statistical tools to determine the effect of buildability assessment on real estate investment. The major factors responsible for failure of buildability assessment are resistance of client to buildability programme, incorrect and inadequate design detailing, errors, omission, under/ over design, incorrect specification of materials, construction difficulties, non-optimum materials usage, simple installation, nature of soil etc. as shown in the findings. Unstable economic environment, width of the investment, finance for real property investment, land tenure legislation and land administration, socio-political issues, real property data banking, provision of physical infrastructure and inflation rate were identified as the reasons for the buildability assessment on real property investment. Furthermore, consequences of absence of buildability assessment on real property investment include: delay in property delivery, reduced investment life-span, wastage of invested capital and loss of capital, conflict among lease and lessor, real property investment on long void period, increase in maintenance and repair, loss of investment income, discouragement of prospective investors, difficulty in real property investment and unhealthy investment procedures. Therefore, it thus reaffirmed the relationship between buildability assessment and real property investment as statistically significant with F (0.659) =12.74; P

Organizational Learning and Risk Management Maturity: Systematic and Meta-Analyses Approach

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of investigating the role of developers in the economic development of the country. The relevance of this scientific problem decision is that the risk management maturity on the part of developers is often underestimated when researching developing real estate markets. Systematization of the literary sources and approaches for solving the problem of risk management proved the presence of a significant number of studies that confirm the hypothesis that some of the developers have not reached the normalized risk management maturity scale. The main purpose of the paper is to explore the role of organizational learning in enhancing risk management maturity, as a means of setting research agenda for its empirical evaluation in emerging economies. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach, the article systematizes the scientific literature on the importance of organizational learning in managing real estate investment maturity risks in emerging economies like Nigeria. The object of the research was indexed studies on Web of Scholar, Google Scholar, Emerald and Pubmed databases. Qualitative analysis methods have become a methodical toolkit for determining the parameters of organizational learning that contribute to the achievement of risk management maturity. The paper confirms and theoretically proves that risk knowledge acquisition, integration and transformation had potentials of respectively leading to sustainable risk identification, assessment and mitigation in property development projects. The results of the study form the basis for the understanding by scholars, practitioners and policy makers of their contribution to scientific research on the issues of a risk management mature property development sector in emerging economies. The strengths of this study are that it aims to identify the importance of organizational learning in risk management mature property investment in emerging markets.

Особенности частного инвестирования в объекты жилой недвижимости в России

The paper aims to identify problems associated with the assessment of residential real estate for pri-vate investors, as well as to define and characterize a private investor. A decision-making algorithm for private investors in residential real estate is presented, which allows individual characteristics of the investor to be taken into account. With the help of this algorithm, private investors can independently assess residential real estate for personal purposes. The proposed algorithm provides the basis for building a financial model of private investment in residential real estate. The study tested this algo-rithm, presenting a specific example of residential real estate assessment for investment purposes. The calculation results show the effectiveness of the proposed procedure in understanding investors’ interests in the residential real estate market. Moreover, the presented procedure can be easily digit-ized, thus allowing an unqualified private investor to use it as a practical guide in the assessment of residential real estate investment properties. In digital form, the proposed algorithm can be used as a smartphone application.

Naknadno merenje nekretnina, postrojenja i opreme u hotelijerskim preduzećima u Republici Srbiji i Republici Hrvatskoj

The aim of this paper is to consider the practice of subsequent measurement of property, plant and equipment in hotel companies in the Republic of Serbia and the Republic of Croatia, i.e., to determine whether the preparers of financial statements make greater use of the historical cost model or the model based on fair value. The sample consists of 220 hotel companies in the Republic of Serbia and the Republic of Croatia, observing their financial reports for 2019. The research reveals that most hotel companies in both countries subsequently measure owner-occupied property and plant and equipment according to the historical cost model. Hotel companies in Serbia most often apply the fair value model for subsequent measurement of investment property, while hotel companies in Croatia most often apply the historical cost model in the same context. We also find that a large number of hotel companies in the observed countries do not disclose the basis for subsequent measurement of property (including investment), plant and equipment in the notes to their financial statements, which means that the quality of financial reporting on those assets in the hotel companies should be improved.

A Review of Studies on Real Estate Investment Performance in Nigeria

This study has been conducted to review the studies conducted on property investment performance in Nigeria with the aim of providing a clear insight into the trend, authors’ affiliations, performance measurement techniques and the geographical focus of these studies. Published and unpublished research works in this research area were sourced and reviewed. The data and information used were sourced from online databases such as Google, Google Scholar, ScienceDirect, ProQuest, and ResearchGate. Printed journals (local and international), published and unpublished Masters and PhD theses were also among the sources of the data used. Descriptive statistics were used to analyse the authors’ contributions, affiliations, geographical focus and the annual research trend of real estate investment performance in Nigeria and the results reported. The study found that the first study conducted on the performance of real estate investment was Olaleye (2000) followed by Olaleye (2002). Olaleye, A., Oyewole, M. O. and Dabara, D. I. were found to be the most active and leading researchers on this research area with contributory scores of 3.87, 3.61 and 3.21 respectively. On the average, about 2 studies on the subject were carried out annually with focus majorly on the Lagos property market, Southwest Nigeria. The review further revealed that nominal rate of returns, Sharpe index and coefficient of variation were the common performance measurement indices often adopted by majority of the previous authors. This study recommends that collaborative effort should be established among scholars of estate management and practicing estate surveyors and valuers with a view to bridging the gap between theory and practice and boosting property data banking in Nigeria. The geographical scope of real estate investment performance in Nigeria needs to be expanded to adequately cover all the regional property markets.

Effect of Accessibility on Commercial Property Rental Values Performance in Oja Oba Market, Ilorin Metropolis

The value of a commercial property is mainly determined by its inter-accessibility to other land uses; accessibility is a critical component in determining the costs and rewards of any investment. The study is being conducted to investigate the impact of accessibility on the rental values of retail premises. The purpose of this study was to determine the extent to which accessibility affects the rental value of retail premises. The following goals were established: to assess the rent in various locations inside the market from the primary major route. The stratified random sample approach was employed to acquire the data to evaluate if there is a variance in rent and the link between rental value and distance. Data were examined using descriptive statistics and linear regression using SPSS. The data indicated that rent varies within the market as distance increases. It was found that as distance increases to the market, the rental prices of store premises fall, and there is a strong positive linear relationship between distance and rental value. The report also advised that the government establish market parking space. The government should also give private shop property investors appropriate loans at cheap interest rates to boost investment in this sector.

Fair value hierarchy in valuation of investment properties: content analysis in Borsa Istanbul

Fair value hierarchy in valuation of investment properties: content analysis in Borsa Istanbul

Big Data and the Essential Facilities Doctrine: A Law and Economics Approach to Fostering Competition and Innovation in Creative Industries

This article examines the growing market power of global streaming services in creative industries for video and music, and the intellectual property investments and inputs in these services. The author considers the prevalence of big data in these industries, enabling the development of highly targeted content, thereby dramatically reducing the potential of failure and mitigating the cost of investment. The author examined the suitability of traditional intellectual property laws for creative works driven largely by data inputs. The possibility of utilising the essential facilities doctrine to impose a duty to licence on these undertakings and the impact that could have on competition, innovation, incentives, and the economic functioning of creative industries is explored. 

Institutional investor management of Australian healthcare property assets as a pandemic-proof asset class

PurposeAs the prolonged effect of the COVID-19 pandemic has materially impacted investment returns significantly, it is more crucial than ever for institutional investors to redefine their property portfolios using assets with better investment management potential and meaningful diversification benefits. The “alternative asset revolution” is gaining traction in the property investment space internationally among institutional investors due to the shifting investment attitudes towards the alternative property sectors. Australia's $205bn healthcare property sector is at the forefront of this revolution due to its societal significance, as well as its attractive investment qualities. This paper investigates the institutional investor management of the Australian healthcare property sector via both the direct and listed channels and empirically analyses its investment attributes.Design/methodology/approachUsing the unique Morgan Stanley Capital International/Property Council of Australia quarterly data set for Australian direct healthcare property over 2006–2020, the risk-adjusted performance and portfolio diversification potential direct healthcare property and listed healthcare were assessed. A constrained mean-variance portfolio optimisation framework was used to develop a six-asset portfolio scenario to analyse the portfolio added-value benefits of both direct healthcare property and listed healthcare in a mixed-asset investment strategy. A similar set of analysis was performed using the post-global financial crisis (GFC) quarterly time series of 2009–2020 to investigate the healthcare asset class' performance dynamics in the post-GFC investment timeframe.FindingsThe results indicate that direct healthcare property and listed healthcare offer two key advantages for institutional investors in managing their property portfolios: (1) a stable yet superior risk-adjusted performance and (2) significant portfolio diversification potential in managing their property portfolios. Importantly, both direct healthcare property and listed healthcare provided valuable contributions in strengthening an investment portfolio's performance. The post-GFC sub-period analysis revealed a consistent conclusion regarding the healthcare asset class's performance attributes.Originality/valueThis is the first research that provides an independent empirical examination of the strategic importance of Australian healthcare property as a maturing alternative property sector that can serve both investment and environmental, social and governance goals of investors. This research presents a positive investment prognosis for the Australian healthcare property sector to achieve its institutionalised status as a mainstream asset class of the future.

Value-relevance of reported changes in fair values and measurement-related fair value disclosures: evidence from the Australian real estate industry

PurposeThe paper aims to investigate the value-relevance of changes in fair values of investment property reported under International Accounting Standards (IAS) 40 and International Financial Reporting Standards (IFRS) 13.Design/methodology/approachMultivariate regression models are used to regress cumulative market-adjusted stock returns of real estate firms on changes in fair values, along with control variables and corporate governance variables, in order to examine the research question.FindingsUsing hand-collected data from the Australian Real Estate Industry (AREI), the authors find that changes in fair values of investment property are value-relevant for equity investors. The authors further find that using unobservable inputs in an active market (Level 3 inputs) does not diminish the information content of fair values. The authors document that properties valued exclusively by directors have a significantly reduced value-relevance, whereas property valuations made collectively by both directors and independent valuers have superior value-relevance, possibly owing to the combination of inside knowledge and externally imposed monitoring. Collectively, the findings suggest that in the real estate industry, where unobservable inputs are commonly used to determine fair values of properties, the fair values determined subjectively are perceived to be sufficiently informative and relevant.Research limitations/implicationsThe authors' findings have important implications for accounting standard-setters in considering whether an external valuation should be required and whether the extensive measurement-related fair value disclosure requirements are useful.Originality/valueThe study extends previous archival evidence and complements prior commentaries on experimental and analytical work in the Australian regulatory environment.