Property Stock Research Articles

Exploring the principal factors driving the volatility structure of stock trade levels in New Zealand: a Covid-19 perspective

This paper explores factors that drive the volatility structure of New Zealand stock trade levels, with the aim of understanding unusual volatility of stock trade levels that may pose a risk to the critical operations of a trading venue. Weekly number of trades from 2014–2024 for the sampled stocks were examined within principal axis factoring (PAF) and GARCH models. The results showed that three factors accounted for around 60% of volatility in the number of stock trades over the sampled period; they were driven primarily by electricity generation stocks, consumer discretionary stocks, and commercial property stocks respectively. During the sampled period, two subperiods of market shock showed unusual levels of volatility in all principal factors, with the second subperiod, which coincided with the Covid-19 outbreak, being particularly notable. An implication of the study is that given the volatilities of stock trade levels are little studied in the literature, the findings of this study could be a useful complement to existing studies examining stock price volatility for the purposes of mitigating unusual stock trading volatility.

Behavioral factors influencing investment decision-making in the Nigerian real estate stock market

This paper examines the behavioral factors that influence investment decision-making in the Nigerian property stock market, with a survey of registered stockbrokers with the Nigeria Exchange Group (NGX), to provide information for optimal investment decision-making. The study adopted a direct survey method. Relevant information was obtained from registered Nigerian stockbrokers via a closed-end questionnaire, and their responses were analyzed using principal component factor (PCF), and ordinary least square (OLS) regression analyses. The study confirms the influence of behavioral factors on investment decisions in the real estate stock market. Buying decisions dominate during bull markets, but investors prefer selling decisions when the market is down. Six behavioral principal factors were extracted. Investor responsiveness factor explains the dynamics of investment decisions in the optimistic property stock market, while herd effect factor predicts investors' investment behavior in the pessimistic market. The empirical evidence of emotional trading underscores the importance of behavioral factors in achieving significant property stock market performance and optimal investment decision making in the Nigeria real estate stock market.

CONDITIONING OF LEASING OF STATE TREASURY’S AGRICULTURAL LAND IN THE WARMIA-MAZURY REGION

The aim of this research was to identify factors conditioning usage of leasing as a form of management of agricultural lands in the region of Warmia and Mazury. It was based on survey research conducted among 134 agricultural land leaseholders and buyers from the Warmia-Mazury region. By the end of 2020, 824.7 thousand ha of agricultural land was repossessed by the Treasury Agricultural Property Stock in the Warmia-Mazury Voivodship, out of which 83.6% was leased. The main source of financing of the farms expansion was own resources, bank credit, and subsidies and dotation from the EU. At the same time, the development and functioning of farms were mostly influenced by resource factors (area, quality of the farm land, machinery park), production profitability which depends on prices of means of production, subsidies from EU funds, farm land prices, agricultural production cost, demand for agricultural produce and their unstable purchase prices. Different perception of factors conditioning the development and functioning of farms was due to the size of a farm. As the results of the analysis indicate, the development and functioning of farms with area above 100 ha were more dependent of owned machinery park, qualifications of labour on the local market, costs of credit taken to purchase agricultural land, as well as procedures to obtain subsidies from EU funds.

Types and Methods of Assessing the Value of Intellectual Property Pledge Financing

China has a large stock of intellectual properties and a strong capacity for indirect financing. In the process of shifting from factor inputs supporting high economic growth to technological innovation contributing to high-quality economic development, intellectual property pledge financing plays an extremely important role. Moreover, as a new financing channel, intellectual property pledge financing can effectively alleviate the financial pressure on the development of small and medium-sized enterprises. Additionally, intellectual property pledge financing can also help promote the transformation of knowledge achievements and alleviate the financial problems of enterprises to a certain extent. Although China's intellectual property pledge financing has seen rapid development in recent years, there is still a large gap compared to the number of intellectual properties and the financing needs of enterprises. This is mainly attributed to the easy depreciation of intellectual properties, instability of rights, and other characteristics, which cause difficulties in assessing the value of intellectual property pledge financing and aggravates the risk and difficulty of intellectual property pledge financing. Therefore, how to scientifically assess the value of intellectual properties for the purpose of pledge financing has become an issue worthy of in-depth study and exploration at this stage.

DETERMINANTS OF CHANGES IN AGRICULTURAL LAND PRICES AT REGIONAL LEVEL IN POLAND

The aim of the research was to identify factors determining changes in land prices and to indicate clusters of Polish voivodeships distinguished according to the adopted variables. Because of the specific features of the agricultural land market in Poland, the performed analyses accounted for the distinction in prices of agricultural land from the Agricultural Property Stock of the State Treasury and from private land trade. In view of the formal and legal regulations implemented in Poland, and the way changes in land prices are recorded, the analysis concerned the time period of 2013-2020, divided into two sub-periods: 2013-2016, and 2017-2020. One of the most significant considerations was the fact that there were two submarkets on the Polish agricultural land market, such as the farmland in private turnover and the farmland from the Agricultural Property Stock of the State Treasury. The highest differentiation of land prices between the voivodeships was due to the average monthly disposal income per capita from a family farm relative to the average monthly income per capita from being self-employed, and the total acreage of farmland sold from the State Treasury Stock.

Financial Metrics and Property Stock Returns: Evidence from Indonesia

This quantitative study examines the influence of Market Value Added, Economic Value Added, Earnings Per Share, and Operating Cash Flow on property stock returns in the Indonesian stock exchange. The research focuses on a sample of 27 property companies for the period 2017-2020, selected from a population of 54 companies. Multiple regression analysis using Eviews version 9 is employed as the analytical method. The findings indicate that Market Value Added, Economic Value Added, and Earnings Per Share do not significantly affect stock returns. However, Operating Cash Flow demonstrates a significant impact on stock returns. Additionally, when considered together, Market Value Added, Economic Value Added, Earnings Per Share, and Operating Cash Flow collectively exhibit a significant influence on property stock returns. This study provides valuable insights for investors, analysts, and policymakers in understanding the determinants of stock returns in the property sector, offering implications for decision-making and investment strategies in the Indonesian stock market.
 Highlights:
 
 Financial metrics: Investigating the impact of Market Value Added, Economic Value Added, Earnings Per Share, and Operating Cash Flow on property stock returns.
 Stock return determinants: Analyzing the significance of these financial metrics in influencing the returns of property stocks.
 Market implications: Providing insights for investors and policymakers regarding the role of financial metrics in predicting and understanding property stock returns.
 
 Keywords: Market Value Added, Economic Value Added, Earnings Per Share, Operating Cash Flow, property stock returns

The Impact of Investor Sentiment on Housing Prices and the Property Stock Index Volatility in South Africa

Abstract While prior studies have examined the predictive effect of macroeconomic and country risk components on property stock index dynamics, limited explanations exist in the literature regarding the time-varying effect of investor sentiment on housing prices. Accordingly, this study assesses the impact of investor sentiment on housing properties’ returns and the effect of investor sentiment on the conditional volatility of housing price indices under different market conditions, using GARCH, GJR-GARCH, E-GARCH and Markov-switching VAR models. We found investor sentiment to significantly impact the risk premium of the property returns, where property returns increased with positive changes in investor sentiment, and conditional volatility of property returns decreased with the same changes in investor sentiment. Investor sentiment exerts positive predictive influences on the prices of small and medium houses, in both bullish and bearish market conditions but does not affect the large housing market segment. This makes the implementation of risk-related diversification across small and medium real estate portfolios more effective than large real estate portfolios. Our findings show that investor sentiment is a plausible driver of mass investor redemption actions under conditions of uncertainty.

Editorial JARER Volume 7 Issue 2

Editorial Welcome to Volume 7 (2022), Issue 2 of the Journal of African Real Estate Research (JARER). JARER has been providing valuable resources and continues to be an exciting outlet for authors across Africa to propagate the results of their research activities. The journal has been strengthened and continues to grow in leaps and bounds. We are happy to inform our stakeholders that, JARER has been approved to be listed in the Directory of Open Access Journal (DOAJ) as from January, 2023. This is in addition to being recognised as meeting acceptable quality and listed in the 2021 American Real Estate Society’s (ARES) Real Estate Journal List. The list can be found at: https://www.aresnet.org/page/journal-list. We are not unaware that these achievements cannot be made possible without the efforts and support of the journal editorial board members, our anonymous reviewers and other stakeholders. Our gratitude therefore goes to them and all others stakeholders, including the African Real Estate Society’s board members, the team and colleagues at the Library services at the University of Cape Town, and the Journal Manager, Ms Lesedi Kgaka, who has been working diligently in managing the journal’s operations and at ensuring that the journal is moved forward to an enviable height. We will continue to appreciate the support from Prof. Karl-Werner Schulte and his team from the IREBS at Regensburg University, the IRES, and ERES. The journal’s qualities of review and thoroughness, no doubt, have improved tremendously, even though this has increased the rate of paper rejection, in the recent past. This explains why the current issue contains four papers with focus on private housing development, property rating valuation, price volatility in the stock market and void management strategies in multi-tenanted office property. This first paper examines the factors that influence access to urban land for private housing development in Minna, Nigeria. A total of 18 variables were distilled from previous empirical studies which were analysed using factor analysis technique. The results indicate that land titling, socio-economic characteristics of the populace and land acquisition issues were the main factors affecting urban land accessibility for private housing development. The study concludes that stakeholders in land administration and management in the city should work on these factors to improve access to land for private housing development. The second paper examines the volatility of the daily market price of listed property stocks on the Johannesburg Stock Exchange (JSE) for a 10-year period (2008-2017). The study used daily prices from January 2, 2008, to December 29, 2017, of twelve quoted property companies out of the twenty-seven listed on the Johannesburg Stock Exchange (SA REIT Association, 2020). The study modelled SA-REIT market price volatility using generalised autoregressive conditional heteroskedasticity (GARCH 1, 1). The result implies that investment in the property stock market is strongly driven by positive news on daily prices than a negative shock. The study thus concludes that South African property investors are more sensitive and exhibit a sharp response to good news on the daily market price than bad news when thinking of investing in listed property company shares. The focus of third paper is an investigation of the causes of variance in assessed rateable values among property rating valuers. Qualitative data were obtained from valuers and content analysis was carried out to analyse the data. Findings showed that specialisation, valuers' opinion on the rating valuation input variables, lack of due diligence, corruption, the ambiguity of the rating law, information in the tone–of–the–list, lack of proper sanction and gratification by ratepayers are some of the causes of variance in rateable value. The conclusion drawn centres on the need to correct the identified problems causing variance in rating valuation with a view to ensuring effective rating administration. The fourth paper assesses void management strategies adopted by Estate Surveying firms in multi-tenanted office properties in Lagos, Nigeria. Data obtained were analysed using frequency table, mean, mean deviation and mean ranking. The study found that void eradication strategies of adherence to vacation clauses and regular advertisement were the most frequently used strategies. The paper concludes that choice of void management strategies in multi-tenanted office properties depends on the cost involved and effectiveness of the strategies. Thank you for your continued interest in JARER. I look forward to receiving your feedback on this and previous issues of the journal. Prof. Abel Olaleye Editor-in-Chief

Energy efficiency in shared buildings: Quantification of the potential at multiple scales

The field of non-residential buildings is very heterogeneous. This results in a compartmentalized approach that prevents desired energy efficiency improvements from being achieved at a large scale. This paper proposes a transversal approach to energy efficiency based on the aggregation of building typologies and the integration of the scales of analysis.Upon energy and occupancy analogies we define shared buildings as buildings characterized by a low energy intensity, the predominance of HVAC systems on energy uses, and a large and variable occupancy. This concept gathers in itself a considerable energy efficiency potential, as shared buildings are found to account for 35% of non-residential energy consumption. We overview energy efficiency hotspots and operational criticalities in shared buildings and outline the development of a framework that is fit-for-purpose for the quantification of the energy efficiency potential at multiple scales.Improvement in ventilation energy management in a university stock is used to exemplify the approach: first, we apply dynamic simulation to a single building obtaining 65% HVAC energy savings; then, we generalize the results to the property stock obtaining reductions from 190 to 130 kWh/(m2y) in energy intensity, simultaneously fulfilling the desired energetic and economic targets.

Analisis Faktor Fundamental dan Risiko Sistematik terhadap Harga Saham dengan Profitabilitas sebagai Variabel Intervening

This study aims to determine the effect of Earning Per Share (EPS), Current Ratio (CR), Exchange Rate and Interest Rate Risk on stock price movements with Return On Assets (EPS) as an intervening variable on property stocks listed on the Indonesia Stock Exchange 2017 -2021. The sample in this study was taken by purposive sampling method on property stocks listed on the Indonesia Stock Exchange 2017-2021. The number of samples used as many as 158 companies. The analytical method of this research is using multiple linear regression analysis method. The results of this study indicate that partially Earning per Share (EPS), has a significant effect on Return On Assets (ROA), Current Ratio (CR) has a significant effect on Return On Assets (ROA), Exchange Rates have a significant effect on Return On Assets (ROA)., Interest Rate Risk has a significant effect on Return On Assets (ROA), Earnings per Share (EPS) has a significant effect on Stock Prices, Current Ratio (CR) has a significant effect on Stock Prices, Exchange, Risk Interest has a significant effect on stock prices, Return on Assets (ROA) has a significant effect on stock prices, Earning per Share (EPS) has no significant effect on stock prices through Return On Assets (ROA) as an intervening variable, Current Ratio (CR) has no effect significant effect on stock prices through Return On Assets (ROA) as an intervening variable, exchange rate has an effect s significant no effect on stock prices through Return On Assets (ROA) as an intervening variable and Interest Rate Risk has no significant effect on stock prices through Return On Assets (ROA) as an intervening variable on property stocks listed on the Indonesia Stock Exchange 2017-2021.

Modelling of Daily Price Volatility of South Africa Property Stock Market Using GARCH Analysis

The study examined the volatility of the daily market price of listed property stocks on the Johannesburg Stock Exchange (JSE) for a 10year period (2008-2017). The study used daily prices from January 2, 2008 to December 29, 2017 of twelve (12) quoted property companies out of the twenty-seven (27) listed on Johannesburg Stock Exchange (SA REIT Association, 2020). The study computed the average daily price of the selected (12) property stocks and was used as a proxy for the daily market price for the property stock market in the analysis. The study modelled SA-REIT market price volatility using generalised autoregressive conditional heteroskedasticity (GARCH 1, 1). The GARCH model reported that the previous day's information of both the daily market price (ARCH term) and the volatility (GARCH term) have a positive and significant (p<.05) effect on the current day’s daily market price volatility in the property stock market. The result of the model implies that investment in the property stock market is strongly driven by positive news on daily price than a negative shock; meaning that South Africans' investors are more sensitive and exhibit a sharp response to good news on daily market price than bad news when thinking of investing in listed property company shares on Johannesburg Stock Exchange.

INVESTMENT DYNAMICS OF SINGAPORE STOCK AND REAL ESTATE MARKETS

This paper examines investment dynamics of six major Singapore asset markets (general stock, property stock, residential, office, retail and industrial) over the last 45 years by focusing on their dynamic correlations, varying spillover-connectedness, Granger causal dependence and selective frequency return connectedness to understand better the changing market relationships among the six markets, as well as the wealth effects between the stock and housing markets. We find that the six asset markets have not become more correlated over time. The 2007–2009 global financial crisis has created the most severe contagion among the markets and was followed by Singapore economic recession. Although these six markets were quite moderately connected in their returns and risk, the return and risk connectedness index measures reached their respective low levels in recent years. The net directional connectedness of the six markets varies in different periods of domestic economic development, external financial crisis and domestic economic recession. Moreover, the housing market leads significant causal interactive roles (linear and nonlinear) over other property and stock markets. On the other hand, the stock market is a strong return transmitter for most of the research periods. The long-term horizon was the most important in contributing to the leadership position in return connectedness of housing market during the Asian financial crisis. Finally, a key message derived from this “long-period” study is that an in-depth understanding of the various investment dynamics is crucial to help maximize mixed portfolio diversification benefits and managing risk in Singapore stock and property markets in the long run.

AGRICULTURAL PRODUCTION CENTER AS AN OBJECT OF AGRICULTURAL OWNERSHIP

The National Agricultural Support Center manages the property belonging to the Agricultural Property Stock of the State Treasury. A special component of this Resource are agricultural production centers, which constitute property and which can be developed by putting them into subsidiary possession on the basis of a lease agreement. Management of centers has special features due to the specificity of centers as well as management goals. These features affect the land ownership, delineating its specificity.

Leasing agricultural real property as one of the forms of managing the property of the Agricultural Property Stock of the State Treasury

A lease agreement with a purchase option, referred to as ‘agricultural leasing’ in legal scholars’ writings, is regulated under Article 38a of the Act on the Management of Agricultural Real Properties of the State Treasury (hereinafter referred to as ugnrSP). Although the said provision has been in force since 19 January 1994, it is not used in practice. So far, no ownership has been transferred under this procedure, which is indeed perplexing. Under the said provision, property of the Agricultural Property Stock of the State Treasury may be leased to natural or legal persons, with the tenant having the right to purchase the leased property no later than at the end of the lease term. Lease with a purchase option may prove beneficial for both the National Centre for Agricultural Support (hereinafter referred to as KOWR) and for the lessee. The agreement carries a lending functionality as it is a form of a loan granted by KOWR to the tenants. On the other hand, in this form KOWR may transfer property that requires large financial expenditure, thereby making its presence in the Stock economically unprofitable, which cannot be sold on the basis of a contract of sale. The purpose of the article is to examine whether, in view of the changes introduced in recent years as regards the sale of agricultural real properties from the Agricultural Property Stock of the State Treasury, it is possible to enter into lease agreements with a purchase option, what real properties may be sold under this agreement, who may be a party to it, as well as to establish why Article 38a is not applied in practice.

Effects of Renovation on Ventilation and Energy Saving in Residential Building

Renovation usually increases the aesthetic and market value of buildings. Consequently, with the rapid growth of the city's population and skyrocketing demand for decent housing, the current trend of building conversion and renovation of existing and dilapidated property stock within city centres has become rampant. The rise in demand has pushed beyond the boundaries that every real estate investor wants to maximize profit, and it has resulted in the prevalence of uncontrolled building development, land use conversion, and non-compliance with building requirements, etc. Renovations that involve changes in building elements (especially the window system) that can influence energy saving and ventilation efficiency have thus become very common. However, the effects of building renovations on ventilation and energy efficiency have not been fully examined, particularly in Enugu (Nigeria), a rapidly growing colonial metropolis. This research employed a qualitative research approach to investigate the effects of building renovation on ventilation and energy saving in Achara layout, Enugu City, Nigeria. Four blocks of flat residential buildings were the derived sample size using a judgmental sampling technique. Physical measurements, an observation schedule, and oral interviews with site workers centred on window size, area, property, and fenestration type were used to collect empirical data involving the window system. The result reveals a very significant difference between the as-built and renovated window design systems of all studied variables. Its conclusion hinged on the fact that a renovated structure does not encourage effective natural ventilation and hence will consume more energy in cooling and lighting. It recommends the re-introduction of appropriate window systems and construction techniques for the tropical environment to reduce heat stress build-up within building units. Doi: 10.28991/CEJ-SP2021-07-09 Full Text: PDF

Towards Attaining Sustainable Retail Property Locations: The Relationships between Supply, Demand, and Accessibility of Retail Spaces

This study explored retail location performance of cities by investigating relationships between changes in retail property stock (supply), changes in retail rental value (demand), and spatial accessibility (retail consumer movement) across three UK cities, namely, Leeds, Newcastle, and York. This is to understand how retail locations and assets can be managed sustainably. In this sense, sustainability was considered through a dual focus in this paper: (1) the efficient use of retail property assets for economic purposes and (2) the impact of these physical retail assets on the local environment in terms of carbon footprint. The study relied on space syntax ideology in computing spatial accessibility index and adopted business rate datasets in computing changes in retail rental value and stock. Findings showed that spatial accessibility across retail locations could predict the performance of retail rental value (but not stock) across the sampled cities. The study further showed that extent of city analysis (scale) is significant in estimating retail location performance and understanding the influence of accessibility. This evidence has the potential to facilitate better decision-making concerning the planning, design, and management of retail locations and spaces. The study is significant because it can serve as a reference for promoting an urban sustainability agenda, especially in ensuring that urban land and properties are used optimally to maximise their social, economic, and environmental values.

Impacts of Macroeconomic Factors on Stock Returns in the Property Sector

The objective of this research was to determine the impact of macroeconomic factors, namely the price of gold, the gross domestic product (GDP) and the money supply, on stock returns in the property sector listed on the Indonesian Stock Exchange. The data used were monthly data from 10 property stocks for the period 2013-2019. Panel data regression was used. The results indicated that the price of gold had a positive impact on returns, GDP had no impact on returns, and the money supply had a negative impact on returns. When considered together, the price of gold, GDP and money supply had an impact on stock returns in the property sector.
 Keywords: stock returns, macroeconomics, arbitrage pricing theory

Future of work and employee empowerment and satisfaction: Evidence from a decade of technological change

Increasing evidence suggests that technological change will significantly affect interactions in the workplace. Even if technological change displaces some jobs, it may have positive effects among the employees’ who remain employed and subsequent new hires. We introduce a new measure of technological change at the county-level using the growth in the stock of intellectual property (IP) across industries. Using new individual-level data between 2008 and 2018 from Gallup, we quantify the effects of technological change on employee empowerment and well-being. Our results suggest that technological change is associated with positive effects on employee empowerment and life satisfaction. The results are strongest in workplaces with trust and more directive managers, suggesting that structured management may be help mediate the emergence of AI and automation.

The Economic Function of Land Use and its Selected Ecosystem Services

Purpose: The article aims to indicate the essence of land use in the context of its economic functions and selected ecosystem services, mainly generated by agriculture. The dilemmas surrounding the issues mentioned above are the subject of the following study. The essence of the perception of the land and its ecosystem services was indicated, primarily in sustainable development, which requires clarification and in-depth discussion in the literature. Design/Methodology/Approach: Bearing in mind that cognitive activity, like practical activity, contributes to the development of knowledge specialization and an in-depth study of phenomena, the article uses theoretical research methods, mainly based on hypothesis and concretization. Findings: The considerations show that the essential element of shaping the present and future structure of land use and its ecosystem services is a rational ecological policy and environmental protection. The management of rural areas must be carried out following the principles of sustainable development. It is important to monitor local potential environmental threats closely related to land use and its services. Practical Implications: The article contains much valuable information, which may constitute the base material and reference further research conducted by scientific specialists studying the agricultural land market or agricultural property management institutions of the Agricultural Property Stock of the State Treasury. Originality/Value: Theoretical considerations complement the research conducted so far in shaping the functions of the land and its ecosystem services and may become a valuable resource of valuable knowledge in the preparation of dissertations in the field of economic use of the environment.

Bubble Detection and the Impact of Monetary Policy, Market Sentiment and Market Liquidity on Property Stock Price Index in Indonesia

The purpose of this study is to detect the existence of a bubble stock and analyze the impact of monetary policy, market sentiment and liquidity on the property stock index in the Indonesian capital market. The data used in this study is secondary data originating from various sources for the period 2016 – 2020 using multiple linear regressions. The bubble stock detection is done by using the ratio between the property stock price index and the consumer nutrient index.
 The results showed that there was an indication of a moderate bubble stock in the property stock index during the research period 2016 – 2020. The factors that impacted the property stock price index were interest rates, the rupiah exchange rate against the US dollar, market sentiment and market liquidity. The increase in interest rates, the rupiah exchange rate, and market sentiment and liquidity has an impact on the increase in the property stock price index on the Indonesian stock exchange for the 2016 – 2020 periods.
 Keywords: Bubble Stock, Exchange Rate, Interest Rate, Inflation, Market Sentiment, Market Liquidity