Property Investment Research Articles

Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors

This study explored the key considerations of commercial property investors acting under conditions of economic uncertainty across the following three dimensions: market fundamentals, institutional, and behavioural factors. Over the past few decades, a series of exogenous shocks to the global economy has impacted property performance, investment volumes, and investor perceptions. Acknowledging that uncertainty further complicates investment decision-making, a mixed-methods research approach was adopted to examine the perspectives of 5 experts and 412 property investors. The findings revealed that, while most investors express negative responses to uncertainty and adopt more cautious attitudes, others are more aggressive and attempt to capitalise on emerging opportunities. Market fundamentals are not the only key consideration; access to information and investors’ behaviour all impact how decisions are made under these conditions. In particular, wealthy and more experienced investors make more comprehensive decisions, considering all three dimensions, while aggressive investors may disregard data in favour of intuition. Behavioural biases such as the bandwagon effect and fear of missing out (FOMO) all influence decisions and are sometimes exacerbated by media narratives. Practically, these considerations underscore the complexity of decision-making under conditions of uncertainty and how different investors attempt to navigate market volatility.

Evaluation of real estate investment performance of insurance companies by NHF Act in curbing housing deficit in Nigeria

PurposeThe purpose of this study is to evaluate the real estate investment performance portfolio decision-making of the insurance firms by the National Housing Fund (NHF) Act in reducing the housing deficit in Nigeria. The insurance companies' gross premium, real estate investment and return on investment trends for the period 2014–2019 were evaluated, to determine the extent of their investment in real estate in Nigeria, this ought to have reduced the shortfall in housing.Design/methodology/approachBoth primary and secondary sources were used. Cronbach’s alpha was used for testing the reliability. The Friedman mean rank with Chi-square was used for different types of real estate investment properties and for reasons for investing in real estate by insurance companies in Nigeria. The test for normality was conducted using the Shapiro–Wilk and Spearman correlation for the significance. The percentage and the data envelopment analysis frontier model were used for measuring performance and efficiency.FindingsThe results showed that the majority of real estate investments made by insurance companies were in commercial and land buying and reselling and that their performance was below average. However, their motivation for investing is not toward the NHF Act but rather for diversification and increasing their capital.Originality/valueTo the best of the authors’ knowledge, this is one of the first studies in Nigeria that looked at how well insurance firms have performed investing in real estate as required by the NHF Act. However, the new Act, the National Housing Fund (Establishment) Act of 2018 which was put on hold due to flaws, affected data availability beyond 2019.

The efficient enforcement challenge of secured transactions law reforms in civil law systems—self-help repossession, strict foreclosure, and other methods for the acceleration of enforcement of security interests

Abstract Although the forging of an efficient system for enforcement of security interest is one of the central expectations of secured transaction law reforms in civil law systems, the results hardly give reason for satisfaction. As the reforms tend to be supported and influenced by various international organizations’ projects (especially the World Bank, the European Bank for Reconstruction and Development, the International Institute for the Unification of Private Law, and the United Nations Commission on International Trade Law), most out-of-court methods of enforcement of security interests have played a central role. Yet due to civil law’s general hostility towards self-help as such, either the introduction of the concept has been rejected or the local limited-reach kin have been merely ‘paper tigers’. Similarly, although security interests on several types of collateral (accounts, investment property) or on the workhorse of the English financial system—the floating charge—have also been enforced extrajudicially (save the exceptions), little attention has been attributed to these enforcement modalities. The same applies to strict foreclosure in civil law systems still being prohibited, or restricted, and thus rarely resorted to, due to the inherited hostility towards the doctrine of lex commissoria. Rethinking local laws on preliminary and temporary court orders to match them with such globally known ex parte preliminary measures as the English Mareva Injunction or the French Saisie Conservatoire, which allow creditors to swiftly freeze debtors’ assets and thus substitute self-help repossession, has also been given short shrift. The enforcement segment, consequently, remains the Achilles’ heel of secured transaction law reforms in civil law systems. This article desires to contribute to reform literature by addressing these deficiencies and by offering tested, fully or partially fitting, functional equivalents of self-help repossession.

The VECM implementation for measuring the impact of monetary variables on Indonesia Property Prices Index

The basic human need for housing makes property investment safer than other sectors because demand tends to be stable despite changing economic conditions. The decision to invest is influenced by various aspects, including economic variables, including GDP, property credit growth, non-performing loans (NPLs), interest rates, exchange rates, and money supply, which are then examined for their influence on the Residential Property Price Index (RPPI) in Indonesia through this research using a Vector Error Correction Model (VECM) with quarterly data from 2003 to 2022. The findings show that GDP, interest rates, and money supply have a significant long-term impact on the RPPI. In the short-term, GDP and property credit growth have a negative impact on RPPI, while NPL and exchange rate do not. Causality tests indicate a bidirectional relationship between NPL and GDP with RPPI, with probability values exceeding 0.05. This study provides valuable insights into the monetary factors affecting residential property prices and suggestions for future research. AcknowledgmentThe authors gratefully acknowledge Ahmad Dahlan University for the support and facilities provided in conducting this research. They also greatly appreciate the academic resources that supported the data collection process and careful analysis of our findings. Besides, the authors express their gratitude to Bank Indonesia and Badan Pusat Statistik for their invaluable contribution to the data used in this research.

Assessment of Property Taxes and their Impact on Real Estate Investment in Plateau State, Nigeria

Taxes imposed on property in the country are characterised by intricate and complex interactions of both traditional, colonial, and modern-day circumstances, and the revenue generated from these taxes is often an important source of finance for the government. In most developing countries, these taxes have led to multiple taxation due to complex, diverse, inadequate, and imperfect information. Thus, this study aims to assess the various property taxes in practice and their impact on real estate investment in Plateau State, Nigeria. The objectives pursued include identifying the various property taxes along with their administering agencies and assessing the impact of these taxes on property investment. The researchers targeted 90 respondents from an estimated population of one million five hundred in the Greater Jos area, and successfully recovered 68 responses through simple random sampling based on the survey conducted among residents. A questionnaire was used to gather the views of taxpayers on multiple taxation and its effects on land and buildings, and the collected data was analysed descriptively. The results revealed that almost all taxpayers in Plateau State pay taxes to the government consistently and to more than two agencies. Furthermore, all tiers of government have their own forms of taxes collected, which have a direct effect on investment. It is therefore recommended, among other measures, that tax collection should be clearly defined and streamlined with respect to which tier of government is responsible for collecting specific taxes on property occupation. This could help reduce, if not eliminate, the issue of taxing the same property multiple times.

Application of SAK ETAP in the Financial Statements of Savings and Loans Cooperative

The general background the financial statements of cooperatives are essential for transparent and accountable operations, particularly in non-public entities like Savings and Loans Cooperatives. Specific background the Savings and Loans Cooperative (KSP) "BAHAGIA" has been operating since 1980, but the application of SAK ETAP (Financial Accounting Standards for Entities Without Public Accountability) in its financial reporting remains incomplete, particularly in its notes to financial statements and cash flow presentation. Knowledge gap while SAK ETAP provides a standardized framework, many cooperatives, including KSP "BAHAGIA," struggle to fully implement it due to a lack of understanding and technical capacity. This study aims to analyze the extent to which SAK ETAP is applied in KSP "BAHAGIA"'s financial reports, identify gaps in compliance, and offer recommendations for improvement. Results the findings reveal that while KSP "BAHAGIA" adheres to some SAK ETAP requirements, such as balance sheets and income statements, significant discrepancies exist in the notes to financial statements and the exclusion of investment property in cash flow reports. Novelty this research highlights a critical gap in financial reporting for non-public cooperatives, emphasizing the need for targeted education and training for cooperative management in SAK ETAP compliance. Implications the study's recommendations can help KSP "BAHAGIA" and similar cooperatives improve financial transparency, ultimately enhancing member trust and cooperative governance. Highlights: Incomplete SAK ETAP implementation affects financial transparency in cooperatives. Key discrepancies found in notes to financial statements and cash flow reporting. Improved SAK ETAP education for cooperative management is crucial for compliance. Keywords: Financial Reporting, Cooperatives, SAK ETAP, Non-Public Entities, Compliance

Iteratively Reweighted Least Squares-based Generalized Linear Model for Assessing the Impact of Macroeconomic Indicators on Property Investment

Iteratively Reweighted Least Squares-based Generalized Linear Model for Assessing the Impact of Macroeconomic Indicators on Property Investment

The role of blockchain technology and smart contracts in enhancing the transparency of fragmented investments in overseas real estate

As the mobility of global capital is getting higher, more and more investors tend to invest in overseas real estate. However, the conventional model of investing in real estate possesses several disadvantages including high entry hurdles, low levels of market liquidity, and low transparency, particularly for retail investors. This article will seek to establish how blockchain technology as applied in smart contracts can help in the clarification of unclear fragmented investments in overseas property. First of all, this paper begins with the definition and examples of applying conventional and advanced blockchain technology and then describes the work of smart contracts and the comparison between regular contracts and smart contracts. The paper also evaluates the nature of fragmented investment in overseas property and its associated risks before suggesting the use of blockchain and smart contracts for a new institutional structure of the investment platform. This study demonstrates how the technologies can advance data sec, promote trust in transactions, and how investment can be automated. It can be concluded that blockchain technology, and smart contracts, can enhance Overseas Real Estate Investment by increasing transparency and decreasing the investment threshold as well as the instances of fraud. This study also presents an analysis of the potential difficulties that may be encountered in real-world applications and a recommendation of what may be done in subsequent studies. On one hand, this research offers a new perspective to the theoretical world, on the other hand, it offers practical problems and solutions to the practitioners who are a part of overseas real estate markets and businesses by steadily helping the overseas real estate markets to move in the fairer and more transparent direction.

Tourism-Led Housing Commodification: Transnational Real Estate Networks and State-Permeated Property Investment in Havana, Cuba

ABSTRACT In a context of ever-growing demand for tourism property, this paper scrutinizes emerging forms of tourism-led housing commodification in Havana, Cuba. In 2011, the Cuban property market reopened to investment when the socialist government allowed the sale of private property at prices set in a market environment. We pay attention to the critical role of Cuban migrants, remittance investors and lifestyle elites in commodifying Havana’s historic housing stock and transforming residential property into short-term rentals, hotels, private restaurants and tourist boutiques. We demonstrate how the Cuban government has become an active market facilitator, either by restraining private competition or by encapsulating tourism property investment within broader channels of the state. We conclude that the case of Havana is indicative of broader trends in tourism and hospitality, particularly in the Global South and East. We propose tourism-led housing commodification as a conceptual framework for understanding these broader commonalities.

Diversification strategies for indirect real estate. Intersection of business, economics, and society in shanghai mixed-use developments

This study examines the impact of large mixed-use developments on the financial performance of publicly listed real estate firms in Shanghai from 2009 to 2019. The research uses a Multi-Criteria Decision Making (MCDM) approach, considering 14 key performance indicators (KPIs) across three categories: Corporate and Financial Information, Strategy Indicators, and Specifics of Mixed-Use Development. The article analyses the performance of large, listed investors on the Hong Kong, Shanghai, and Singapore Stock Exchanges, providing insights into their evolution over the past decade. The literature review highlights the relationship between companies’ performance and corporate finance, capital structure, and financial ratios. It identifies an existing gap in research related to mixed-use assets and indirect real estate. By using the MCDM framework, the study evaluates these assets and provides actionable insights for global investors, asset managers, and developers, helping them make informed decisions in indirect real estate investment. The findings contribute to understanding investment strategy formation in dynamic real estate markets and support informed diversification and urban policy development. This paper offers a useful appraisal framework for future MCDM risk assessments, assisting stakeholders in navigating the complexities of the real estate landscape in one of the world’s foremost metropolitan hubs. It also offers recommendations and insights on best practices for global listed firms while providing a framework for future research in the field of property investment.

Better energy cost information changes household property investment decisions: Evidence from a nationwide experiment

With buildings accounting for roughly 40 % of energy consumption in the US and Europe, energy efficiency upgrades will be central in meeting climate targets. Using a nationwide controlled field experiment, we find that the inclusion of property-specific energy cost labels within property advertisements increases energy efficiency premiums. We also show that more energy efficient properties sell faster and, for the first time, that energy cost labels shortened time-to-sell. While a major departure from existing property labelling policy, these results suggest that framing property energy efficiency according to their cost implications, rather than in energy units, increases the demand for energy efficiency.

ACTUAL ISSUES OF REPRODUCTION OF FIXED ASSETS OF DOMESTIC ENTERPRISES

The article touches upon topical issues of reproduction of fixed assets of domestic enterprises in terms of their accounting, audit and strategic aspects of management. The study emphasises the necessity of constant renewal of fixed assets to ensure competitiveness, increase of labour productivity and quality of products. The main purpose of the study is to identify the key problems of managing the reproduction of fixed assets and formulate ways to solve them. To achieve the research objective, the methods of analysis and synthesis, comparative analysis and empirical methods were used. The paper emphasises the importance of improving accounting and auditing, considers the concepts of physical and moral wear and tear, as well as depreciation of fixed assets. It is determined that improving the depreciation policy is an important factor in increasing the investment activity of business entities. It is substantiated that internal audit plays an important role in providing reliable information on the process of reproduction of fixed assets, which contributes to the effective management of enterprise resources. The author defines the tasks of internal audit, including verification of the correctness of recognition and assessment of fixed assets restoration costs, reliability of information on depreciation charges, depreciation and residual value of fixed assets, control over accounting of lease transactions and transactions with investment property. The publication also discusses the strategic aspects of fixed assets reproduction, emphasising the importance of an innovative approach to improving the competitiveness of enterprises. It is noted that the implementation of innovative reproduction requires an integrated approach, including the construction of a mechanism that ensures the orientation of the market and the macroeconomic model of management to innovative forms of reproduction of fixed capital. The article pays special attention to the problems of financing innovative projects and cooperative technological chains. The article concludes by emphasising the need to form a comprehensive mechanism at the macro level, focused on the priority reproduction of fixed asset systems using the latest technologies. The paper emphasises the importance of creating a unified system of innovation and investment activities of enterprises, taking into account the interests of all participants. It stresses the expediency of using both market and non-market incentives for the reproduction of fixed assets, which will facilitate the production of competitive products and ensure the sustainable development of enterprises in the market.

Trust in the retirement system and investment decisions of property investors

AbstractUsing Australian national‐level survey data and applying Poisson regressions, we show that property investors who have more trust in the retirement system tend to own fewer investment properties. This finding is robust to various estimation methods, sample sizes, and periods.

Whether Managers Bias Fair Value Estimates for Investment Property to Meet/Beat Analysts’ Earnings Forecasts?

Whether Managers Bias Fair Value Estimates for Investment Property to Meet/Beat Analysts’ Earnings Forecasts?

Beyond Chinatown: Chinese diaspora, the transition of power, and the planning of the City of Medan in Dutch East Indies

ABSTRACT Medan is a port city in Sumatra, Dutch East Indies, developed in the late nineteenth and early twentieth centuries. A special case among colonial cities, it featured a large number of Chinese migrants – a third party in addition to the colonizer and the colonized – who played a key role in its urbanization process. Highlighting a trichotomous power framework formed by the Dutch colonizer, the indigenous people and the Chinese diaspora, this paper argues that the Chinese diaspora, with the arrival of commercial elites, obtained opportunities to shape the backbone of the city through skilfully transforming their economic power into political and spatial power. Chinese economic activities such as property investment and co-development not only led to unconventional Chinese quarters but shaped the zoning and axiality of the whole city. The Chinese diaspora also shaped Medan’s streetscape and architecture through individual building design, which, in turn, strengthened their economic power by the careful manipulation of architectural elements from various sources to suit different purposes. The planning history of Medan represents an alternative trajectory to colonial urbanization often led by Europeans, highlighting an ambiguous and shifting power relation among three parties in a transforming colonial society.

Fair value and investment property in accounting literature: a review

Purpose This study aims to provide a timely review concerning the determinants and economic consequences of fair value reporting in real estate industry, as these topics have been gaining momentum in accounting literature recently. Design/methodology/approach Diverse editorial sources (e.g. Elsevier, Emerald, Meridian Allenpress, Springer, Sage, Taylor & Francis and Wiley-Blackwell) were consulted to identify relevant studies for this review. Keywords used to collect studies include “fair value” and “IAS 40” or “investment property” and “fair value or “fair value and real estate.” This search yields 33 studies published between 2009 and 2023. Findings The synthesis of reviewed papers suggests that studies were mainly conducted in the European countries after the mandatory adoption of international financial reporting standards (IFRS) in 2005 and the Australian setting. The first stream of research deals with the choice of fair value approach. Reported empirical findings suggest that corporate size and market-to-book ratio are negatively associated with fair value choice, whereas ownership dispersion increases the likelihood of choosing fair value approach. The empirical evidence concerning the determinants of fair value magnitude suggests the type of appraiser represents a key predictor of the extent of fair value use. The second stream of research examines the impact of fair value reporting in real estate industry. Findings suggest that empirical evidence is still limited with respect to creditors, managers and financial analysts; fair value reporting is generally associated with higher level of value relevance for investors; and the use of Level 3 inputs in fair value estimates for investment properties is associated with high degree of estimation uncertainty for external auditors leading to increased audit risk and fees. Practical implications With respect to regulators, this review emphasizes that the beneficial impacts of fair value reporting are linked to institutional characteristics (e.g. legal system, the degree of market development), the reliability concerns regarding fair value estimates and the independence of appraiser. Because real estate industry is generally characterized by the lack of active market, regulators may adopt regulations requiring the independence external appraiser. Originality/value This literature review represents a historical record and an introduction for accounting scholars, in emerging economies and other settings, where fair value accounting has gained wide acceptance among the investment community. It also offers guidance for future research avenues.

Analysis of the Influence of Domestic Products, Loan Interest Rates, and Residential Property Price Index on Home Ownership Credit Distribution in Indonesia for the Period 2015:TW.I – 2023:TW.III

This research examines the relationship between Gross Domestic Product (GDP), interest rates and house prices on mortgages in Indonesia. Using the dynamic ECM Domowitz-Elbadawi method, this research explores the short and long term relationships between these variables. House prices are measured using the composite Residential Property Price Index in the primary market. The research results show that GDP has a positive and significant effect on mortgage distribution in the short term. On the other hand, in the long term, both interest rates and house prices have a negative and significant influence on mortgage distribution. These findings are valuable for strategic decision making in property investment and policy formulation, suggesting that increasing GDP can boost mortgage distribution, while managing interest rates and house prices is important for long-term stability.

Home Ownership Dynamics: Analysis of The Impact of Gold, Bonds and Stocks on Property Investment Moderated by Loan Interest Rates

The purpose of this study is to examine how shares, bonds, and gold affect real estate investment, which is influenced by loan interest rates. In this study, the data type used is quantitative. Secondary data in the form of residential property price index data, bonds, stocks, loan interest rates and gold prices were sourced from Bank Indonesia. On a monthly basis, sampling employed a time series data method. Multiple linear regression is the data analysis technique employed in this study, which makes use of the E-views software. The study's findings indicate that gold has little bearing on real estate investments. Bonds have an impact on real estate investing. This demonstrates how interest rates or the inclination to invest in real estate can be impacted by an increase in bonds. Increase in shares can influence the interest or tendency to invest in property. Loan interest rates cannot moderate the influence of gold on property investment. Loan interest rates can moderate the effect of bonds on property investment. The results of this research show that there is a negative correlation, meaning that loan interest rates can weaken the influence of bonds on property investment. Loan interest rates can moderate the influence of shares on property investment. The results of this research show that there is a negative correlation, meaning that loan interest rates can weaken the influence of shares on property investment.

A Study on the Impact of Capital Structure on the Performance of Listed Companies

The paper investigates the influence of capital structure on listed companies' performance, with a focus on the property sector, spanning 2010 to 2021. It delves into Modigliani-Miller theorem, factors shaping capital structure decisions, and industry-specific characteristics across various sectors like real estate, technology, and healthcare, and compares capital structure trends in developed and developing countries. The findings reveal a nuanced relationship between capital structure and performance, varying by industry and market maturity. In capital-intensive sectors, like real estate, excessive leverage correlates with diminished performance, while moderate debt levels in technology and healthcare can support innovation but excess leverage may hinder it. Developed countries tend towards balanced capital structures, whereas developing nations lean more towards debt financing. Notably, Chinese firms demonstrate superior property investment efficiency and capital structure management compared to Vietnam. Contributions include a comprehensive framework for capital structure determinants, industry-specific insights aiding firms in optimizing capital structure, empirical evidence on capital structure management in different developing nations, and highlighting capital structure's multidimensional impact on firm performance, encompassing financial risk, R&D investment, and market competitiveness. This study offers valuable guidance for firms, particularly in emerging markets like China, in devising optimal capital structure strategies tailored to industry dynamics and market conditions.

The Impact of Rail Transport Infrastructure on Residential Property Rental Values in Kubwa, Abuja, Nigeria

On a global scale, numerous research studies have been embarked upon to show the level of relationship between transport facilities and residential rental values. This study dwelt on the various aspects of rail infrastructure and how it impacts on residential rental values. To accomplish the aim, questionnaires were distributed to head of households and practicing Estate Surveyors and Valuers in Kubwa, Nigeria. Physical observation also aided the researcher in data gathering. Data were interpreted using tables and percentage while Karl Pearson product moment correlation with the aid of Statistical Package for Social Sciences was employed for data analysis. From the correlation analysis the result revealed that the value of r (Pearson correlation) is 0.751 which indicates strong relationship. The p-value (.001) was less than 0.05 significant level. It was confirmed that the rail transport infrastructure has significant impact on residential rental values in Kubwa, Abuja. This translates to growth in rental values. The study recommended government initiatives on the rail system which directly increases the quantity of optimum rail lines of high-frequency metro lines resulting to a substantial increase in real estate values. This study has provided firsthand information and guide for property investors, estate surveyors, built environment professionals as well as government agencies on the importance of rail infrastructure and the various ways it can positively or negatively affect rental values.