Property Market Research Articles

Property valuation problems and market context – evidence from Kenya

ABSTRACT Property valuation problems such as valuation inaccuracies/variations, client influence, and the use of heuristics persist despite efforts by professional bodies and researchers to improve the practice of valuation worldwide. While some studies attribute the above problems to limited information, most studies link these problems to valuer misconduct. Previous studies in developing countries mirror those of developed nations despite the different property market environments in the two nations; they place little emphasis on market-related problems. Further, there is limited evidence on why valuation problems persist in developing countries. The main objective of this study is to establish why valuation problems in Kenya persist despite efforts to minimise them. The study utilised a quantitative research design involving a survey and experiment of registered and practicing valuers in Kenya. Findings indicate that the above valuation problems persist because of the nature of the valuation environment in Kenya, characterised by limited information. This is typical of many other developing countries. The study makes a critical contribution to knowledge as it builds on the existing literature by providing additional empirical support on why valuation problems persist while introducing appropriate measures to address them.

Lead-Lag Relationship between the Price-to-Rent Ratio and the Macroeconomy: An Empirical Study of the Residential Market of Hong Kong

The price-to-rent (PtR) ratio is one of the most commonly used indicators to assess housing market conditions by policy makers and real estate practitioners. It is often employed as an economic barometer to detect whether a housing bubble exists and determine whether the property market has become unaffordable relative to historical trends. Despite a plethora of research studies on the PtR ratio in the housing literature, relatively little is known about its long-term dynamics with macroeconomic and financial determinants. By utilising time series data on the Hong Kong residential property market, this study examines the cointegration and causal relationships between a wide spectrum of macroeconomic indicators and the PtR ratios of housing segments of different tiers which comprise different socioeconomic groups of homebuyers and investors. The results point towards market compartmentalisation, in the sense that the PtR ratios of the housing submarkets respond to changes in macroeconomic fundamentals in a differential manner. For instance, the PtR ratios of housing segments with a greater proportion of owner-occupiers are statistically less y correlated with investment-related macroeconomic attributes, such as foreign direct investment and equity market performance. On the other hand, the pricing of large-sized housing units in prime locations, generally favoured by investors from mainland China, are found to be Granger-caused by the exchange rate of the Chinese Yuan to the Hong Kong dollar.

Housing price prediction incorporating spatio-temporal dependency into machine learning algorithms

Conventional housing price prediction methods rarely consider the spatiotemporal non-stationary problem in a large data volumes. In this study, four machine learning (ML) models are used to explore the impacts of various features – i.e., property attributes and neighborhood quality - on housing price variations at different geographical scales. Using a 32-year (1984–2016) housing price dataset of Metropolitan Adelaide, Australia, this research relies on 428,000 sale transaction records and 38 explanatory variables. It is shown that non-linear tree-based models, such as Decision Tree, have perform better than linear models. In addition, ensemble machine learning techniques, such as Gradient-Boosting and Random Forest, are better at predicting future housing prices. A spatiotemporal lag (ST-lag) variable was added to improve the prediction accuracy of the models. The study demonstrates that ST-lag (or similar spatio-temporal indicator) can be a useful moderator of spatio-temporal effects in ML applications. This paper will serve as a catalyst for future research into the dynamics of the Australian property market, utilizing the benefits of cutting-edge technologies to develop models for business and property valuation at various geographical levels.

On the Issue of Assessing the Import Dependence of the Russian Intellectual Property Market

On the Issue of Assessing the Import Dependence of the Russian Intellectual Property Market

A real-time mix-adjusted median property price index enabled by an efficient nearest neighbour approximation data structure

Homeowners, first-time buyers, banks, governments and construction companies are highly interested in following the state of the property market. Currently, property price indexes are published several months out of date and hence do not offer the up-to-date information which housing market stakeholders need in order to make informed decisions. In this article, we present an enhanced version of a mix-adjusted median based property price index which uses geospatial property data and stratification in order to compare similar houses sold in different trading periods. The expansion of the algorithm to include additional parameters, enabled by both a richer dataset and the introduction of a new, efficient data structure for nearest neighbour approximation, allows for the construction of a far smoother and more robust index than the original algorithm produced.

Women-headed households and housing location preferences in the informal settlements: What can we learn from Luzira, Uganda?

The decision to move to a preferred location is a phenomenon that women-headed households inevitably grapple with during their housing lifecycle. Choosing a housing location may be determined by several factors. This study sought an in-depth understanding of what drives decisions on preferred housing locations by women-headed households in the Luzira informal settlement of Kampala, Uganda. A qualitative case study design was used, in which in-depth interviews, focus group discussions, and document analysis were employed. Social relations with host households, interactions in the neighbourhood, households' responses to inter-household disputes, household consensus, and informal property market information availability were exhibited as determinants for women-headed household decisions on housing options. This study recommends that policymakers should be aware of the several alternatives and informal channels through which informal property market participants access information on housing opportunities. This can be enhanced by exploiting appropriate technological innovation, such as mobile phones and creating platforms for access and dissemination of housing-related information. More so, key drivers of housing location choices for women should be integral in housing planning.

Relationships and Potentials of Proximate Property Markets: The Case of Aba and Port Harcourt in Nigeria

Unavoidably, the geographical proximity of urban spaces creates relationships which impact their development. One such relationship is economic in nature and this is reflected by production, investment and market activities. Since these activities have implications for development in the property sector, this paper examines the relationships between the proximate property markets of Aba and Port Harcourt. For the purpose of contextualising the influence of proximity on these markets, a survey of property practitioners within the study location was carried out. A 5-point Likert-scale questionnaire was deployed for the data collection. The analysis was done using the weighted mean score statistical approach. The results reveal Port Harcourt is a larger and more resilient property market; also a larger economy which supplies input to Aba whilst receiving the latter’s output. But Aba’s manufacturing economy surprisingly demonstrates a per capita GDP parity with Port Harcourt’s oil-driven economy. Lastly, proximity of the two cities’ would have impacted the environs to a greater extent had the seaport been in productive use over the years. The study recommends the strengthening of these property markets and economies by optimisation of the advantages of proximity

Does the COVID-19 affect tenants’ adherence to lease obligations in rental market? Property managers’ perspective

PurposeThe purpose of this paper is to investigate how the pandemic affects tenants’ response to their lease obligations. This paper commences with examining the adopted tenant selection criteria during the COVID-19 pandemic. Then, this paper statistically tests if there is a relationship between selection criteria and response on whether the pandemic has effects or not. Then, this paper investigates the specific areas of impact on tenants’ ability to adequately keep to lease agreements in the Nigerian rental market. Finally, this paper proceeds to confirm if there is a relationship between selection criteria and the aspects of tenants’ deficiencies in rental obligations because of COVID-19.Design/methodology/approachSurvey data, backed with interviews, is elicited from practicing estate surveyors and valuers and licensed property managers in Lagos, the largest property market in Nigeria and sub-Sahara Africa. Policy solutions and implications were solicited from personnel at the ministry of housing and senior professionals in the property sector. Data were analyzed using descriptive statistics, factor analysis and computer-aided qualitative data analysis, Atlas.ti.FindingsTenant’s health status is now accorded a priority together with others. Numbers of tenants are challenged with keeping to the prompt-rent-payment rule. Other areas of slight breaches included livestock rearing, subletting, alteration and repair covenants. Except for tenant reputation and tenant family size, there was no significant relationship between tenant’s health status consideration and the COVID-19 effect on tenant non-compliance with lease obligation. Tenants’ non-compliance with tenancy obligations has a connection with the tenants’ affordability, reputation, ability to sign an undertaking and health conditions during the pandemic. This paper recommends rental housing policy review.Practical implicationsIt is recommended that the rental policy should be reviewed to give room for rental allowance or palliatives, private rental market regulation, exploration of the national housing fund and, if possible, social housing adoption policy in Nigeria.Originality/valueThis paper draws policymakers’ attention to the need to prepare for the future safety net that caters to citizenry welfare in challenging times.

An empirical analysis of second-hand house transaction prices based on machine learning

The Beijing real estate market is one of the most developed and representative real estate markets in China. As of May 25, 2016, Beijing accounted for 88.2% of the market residential transactions, and the Beijing property market has fully entered the era of second-hand houses. Therefore, the price of second-hand houses in Beijing can be judged by studying the factors influencing the price of second-hand houses in Beijing, and the study has theoretical significance. Taking Beijing second-hand houses as the research object, the data source is mainly designed as a crawler to mine the data and obtain the transaction attribute information of chain house network, and the data sample size is 2000 items in total [1]. In this paper, we obtained the important variables affecting the house price through multiple model analysis and predicted the data of 100 unknown house prices.

ORGANIZATIONAL ISOMORPHISM AND PROPERTY INVESTMENT DECISION-MAKING AMIDST DISRUPTIONS: EVIDENCE FROM LISTED PROPERTY TRUSTS IN NEW ZEALAND

This paper explores the extent of organizational isomorphism (homogeneity and resemblances) in the disruption-driven investment decision-making strategies of Listed Property Trusts (LPTs) in New Zealand. Based on the tenets of institutional theory, this article conceptualizes LPTs as organizations within an investment environment, comprising several firms and actors that are bounded by formal and informal rules. By exploring the interactions and interdependencies across organizational hierarchies in the investment environment, this study adopts a phenomenological approach within case studies in clarifying the extent of homogeneity in the decision-making strategies of LPTs amidst disruptions. The research outcome suggests that LPTs demonstrate normative, coercive and mimetic isomorphic tendencies as they seek legitimacy amidst the uncertainties associated with property market disruptions. Apart from adhering to the peculiar rules and norms of property investment decision-making within their investment environment, this study reveals the tendency of LPTs to observe and replicate the responsive actions of similar organizations as they adjust to market uncertainties. Therefore, the research outcome provides a clearer description of the actual decision-making behaviour of LPTs amidst market disruptions and how subjective behavioural tendencies could evolve to become a legitimate standard of reasoning amongst LPTs.

Comparison of property price development in regions affected by mining with other regions of the CR

The property market has experienced a sharp increase in prices recently, which indicates a different nature of the Covid 19 downturn of the economy compared with usual economic crises. This paper identifies key features of the property market which may help understand why the property market performs differently from other markets. A number of factors play an important role in shaping real estate prices, some of which can and cannot be influenced. The quality of the environment is often one of the main important factors, which is also presented by air pollution values. Apart from transport, waste incineration and thermal power plants, the most common causes of air pollution include the mining industry's activities. We aim to explain why property prices do not converge across regions, but prices in expensive regions experience an even stronger price dynamics, a recent phenomenon. We argue that the price dynamics have been predominantly demand-driven in a market with an unelastic and lacking supply of new properties. The real estate market was also significantly affected by the monetary and fiscal policies of individual states. It has been found that money, which has been invested on a large scale in all sectors of the economy in order to limit the negative effects of pandemic measures, has often found its way to investing in assets of all kinds. As a result, real estate prices are rising sharply, especially in richer areas with minimal unemployment. This article aims to offer a deeper insight into the relationship between flats/house prices and variables that proved to be significantly correlated to prices in regional decomposition. Finally, we suggest ways for sustainable future development of the property market.

Emotional Intelligence and its Application to Real Estate Service Quality: A Knowledge Gap Analysis

The demand for quality of service among practicing firms of real estate to achieving customers’ satisfaction has become the major concern of real estate professional bodies. However, customers’ satisfaction is influenced by their emotional needs in decision making. Therefore, this study develops a conceptualized model for measuring service quality among practicing firms of real estate with the application of emotional intelligence. To assess customers’ satisfaction level, the knowledge gap between perception of real estate firms on expectation of customers and the actual customers’ expected service in the Lagos property market in Nigeria were analyzed. A random selection of 100 members of Nigerian Estate Surveyors and Valuers with a total of 400 real estate customers was purposively selected and administered with a structured questionnaire, However, only 85 retrieved questionnaires from real estate firms and a total of 362 real estate customers responded and utilized for analyzing the data. Knowledge gap analysis model with weighted mean score was employed for data analysis. Findings depicted that real estate firms have a basic knowledge barrier on the adoption of emotional intelligence (with more emphasis on self-awareness and social skills determinants) as an instrument of real estate service quality to satisfy customers’ emotional needs in delivery of service among the practitioners. Therefore, practitioners in the real estate firms need to improve on their knowledge of emotional intelligence as an instrument of real estate service quality to enhance customers’ satisfaction on emotional needs.

Developing a Contextual Framework for Land Value Capture in Lagos, Nigeria

This study aims at developing a framework to guide the use of Land Value Capture (LVC) as a financing mechanism for infrastructure development in Lagos State, Nigeria. This is geared towards facilitating sustainable economic development in the region. Being a desk research, the methodology adopted was a literature survey. This was in order to identify baseline conditions necessary for the efficient application of LVC. The conditions identified, were then analyzed in terms of their workability within the context of the study area. Data was drawn from research articles, case studies, policy papers, and publications from relevant intergovernmental organizations. In addition to developing a framework, which guides the use of LVC in the study area, the study found that there is potential for the application of LVC in Lagos. Areas requiring minimal intervention include the existence of a vibrant property market and lead implementing institution. The state’s current inability to fully capitalize on LVC, are in the areas of having a strategic national vision, a clear policy framework, sound structure for institutional development finance, and an effective land title documentation system. This is the first study that develops a framework for the use of LVC specifically for Lagos. Further, the paper contextualizes the baseline conditions for LVC in Lagos, Nigeria, presenting an alternate finance mechanism for infrastructure development revenue in the region.

HEDONIC REGRESSION ANALYSIS IN DETERMINING THE EFFECT OF GREEN ON HIGH RISE RESIDENTIAL

In predicting house price, there are many influential variables, and each variable is identified as a price determinant. Theoretically, variables are divided into categories, namely locational and neighbourhood attribute, structural attribute, time attribute, and environment attribute. Green element is one of the attributes as describe under environment category. The attribute is important as other variables which significantly explained how people willing to pay intangible variable. The relationship between property price and attribute needs to be examined to understand the influence of the green element on property price. Thus, this research attempts to demonstrate the independent variables correlated to the house price, including the green variable, by using hedonic regression analysis. Hedonic regression analysis is a well-known approach in determining the relationship between two or more variables. Green element represents the green-rated obtained by the housing scheme as evidence that the building possesses sustainable characteristics. The cost of green is relatively high than a conventional building. A dataset of 934 house price transactions with 14 variables was analysed. From the analysis, it is concluded that green has a significant effect on the house price. The result was interpreted by the β coefficient of 0.065 explained in hedonic regression analysis. It signifies that green can add premium to the house price. House price results from multiple determinants represented by house attributes and the findings confirm that one of the environment attributes do give effect on the house price in Malaysia property market.

A robust textual analysis of the dynamics of Hong Kong property market

AbstractMarket sentiments influence the dynamics of Hong Kong’s macro‐critical property market, but the unobservable nature of market sentiments makes it difficult to systemically assess this sentiment channel. Using text mining techniques, this paper sets up a news‐based property market sentiment index and a Google Trends‐based buyer incentive index for Hong Kong and studies the sentiment channel of transmission in the Hong Kong property market. The news‐based property market sentiment index can reflect the change in sentiments in past key events, with the sentiments in the primary market tending to lead that of the secondary market during the low housing supply period. For the Google Buyer Incentive Index, we find that it has value‐added in forecasting (or nowcasting) the official property price index. In mapping out the sentiment channel using a structural vector‐autoregressive model, we find that an improvement in market sentiments could stimulate buyers’ incentives, which then together would affect property prices and transaction volumes.

Organizational Structures of Intellectual Property Management in the Commonwealth of Independent States as a Factor in Creating a Free Innovation Market

The article is devoted to the issues of creating a barrier-free environment for free circulation in the intellectual property market of the post-Soviet countries, which today is in a depressing state. One of the factors of its successful functioning is the unification of the regulatory framework, the creation of a single market principle, and the coordination of the work of patent offices. The purpose of the study is to establish the specifics of the work of the patent offices of the Commonwealth of Independent States to ensure adequate mutual protection of intellectual property, including with countries that are not part of the Eurasian Economic Union, but with which the economic and cultural relationships that have been established for decades are maintained. The analysis of organizational management structures in the field of intellectual property in the CIS countries has shown that along with the general principles of their work, there are numerous features of their activities. The main research method was structural-logical and comparative analysis. Common features are identified, positive experience is generalized, typical shortcomings of both organizational structures as a whole and individual structural units are noted. The place of patent offices in the general system of public administration is determined. The specifics of performing functions, the composition of which differs significantly in different countries, are disclosed. The features of interaction with patent offices are determined. Recommendations for improving the structures and the standard structure of the patent office are proposed.

Factors Affecting Private Domestic Rental Prices in Hong Kong: Example of the Land Auction

Most of the previous researchers estimated the influencing factors of the rising private domestic rental prices in Hong Kong without considering the impact of the land auction. By using the intermediaries of housing prices and property market yields, this paper contributes to evaluating how land auctions affect the private domestic rental costs in Hong Kong. As one of Hong Kong's most important methods for land resource allocation, the land auction has been an excellent example to study the housing market. Based on the random-effects models, the results indicate that housing prices and property market yield significantly positively affect rental prices. The results also suggest that the influences vary among different house sizes. Therefore, this research supports that under the influence of overbidding, the land auction has a positive overall effect on the Hong Kong rental prices.

IMPROVEMENT OF THE NORMATIVE MONETARY EVALUATION OF SETTLEMENT LAND IN THE ECOLOGICAL CONTEXT

The ecological factors affect not only the quality of life and health of settlement residents but also the real property market and land valuation indicators. However, no previous Ukrainian study has considered ecological factors during calculating the normative monetary valuation (NMV) of settlement land. Much uncertainty still exists about the nature of selecting ecological factors, their calculating, interpreting and application. This study aims to identify the ecological factors and their indexes and propose a new approach for defining the ecological impact on the NMV of the settlement land and evaluation units. A retrospective study collected infrastructural, environmental, and ecological data for the Kharkiv city, covering the years 2014–2019. The empirical methods and GIS tools were used to evaluate and interpret the data. The indexes characterising the ecological condition led to an increase in the minimum index for the normative monetary land value within the evaluation districts from 9.71 USD/sq. m. to 12.00 USD/sq. m. and the maximum value – decreased from 101.60 USD/sq. m. to 86.34 USD/sq. m. The new approach takes into account the area of environmental factors distribution within the evaluation unit and proves usefulness in understanding the actual ecological impact on the NMV of settlement land. Overall, this study has demonstrated that the size of land valuation is slightly influenced, although not significantly, by ecological factors.

EVALUASI KEPATUHAN DEBITUR DALAM PENYAMPAIAN PEMBAYARAN PIUTANG PADA PT ALYA PROPERTY TANGERANG SELATAN

PT. Alya Property is located in South Tangerang, engaged in property services, property sold on credit. The problem that arises is that debtors are not orderly in paying installments of receivables, causing bad credit. This dragged on and resulted in the company experiencing difficulties in its operations. To answer this hypothesis, the researchers focused on debtor compliance in the delivery of receivable payments at PT Alya property. he results of the study to answer the hypothesis, then, the analysis of the aging list of accounts receivable can be carried out by PT ALya Property with the presence of an Internal control department in charge of controlling the management of receivables starting from credit sales orders, credit installments to repayment of receivables.

Estate Surveyors and Valuers’ Perception of the Role of Big Data in Property Marketing in Lagos, Nigeria

Property marketing in Nigeria has frequently been characterised by unique challenges due to inadequate and unreliable data. In recent times, big data has presented a wide range of solutions to contemporary issues in different industries, including real estate. Notwithstanding, there is a paucity of practical studies on the role of big data in property marketing of many developing nations, including Nigeria. Hence, there is a need to investigate the role of big data in transforming property marketing in Nigeria. The aim of this study is therefore to investigate Estate Surveyors and Valuers’ (ESVs) perception of the role of big data in property marketing in Lagos, Nigeria. 82 questionnaires were administered to ESVs in the study area and 55 (67%) of them were found useful for analysis. The data were analysed using frequency, percentage, mean and relative importance index. The results revealed that out of 9 possible roles of big data in property marketing, the 2 most notable ones are that real estate firms can execute laser-focused marketing strategies; and they can match demand with supply. These outcomes distinctly disclosed the merits of adopting big data in marketing properties. The implication of these findings is that big data has the potential of reducing fraud due to the presence of sufficient and reliable data in the property market. This study concludes that big data is a worthy addition to the toolset of real estate practitioners, particularly with respect to property marketing, and wholly recommends its adoption.