Finance - Research Publications
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ItemAppraisal smoothing and price discovery in real estate markets(CARFAX PUBLISHING, 2003-05)This paper reviews the literature on price determination in the private and public real estate markets. In particular, it discusses the processes of appraisal smoothing in the private market and of price discovery between the public and the private markets. In real estate markets, the absence of good quality information on price, whether because of lack of trades or confidentiality, has led to the widespread use of appraisals for market tracking and as the basis for performance measurement. Appraisers have to make an optimum assessment of value, based on fundamental variables and market information, including transactions and a market-wide appraisal index. However, transaction prices are a noisy signal and it is the appraiser's role to extract the signal from the noise in an efficient manner. This involves a process of optimal combination of past and current information and leads to appraisal smoothing. Price discovery is the process by which the opinions of market participants about the value of an asset are combined together into a single statistic—its market price. A development of this basic concept is where two markets have a common component of value and the relevant price information is discovered first in one market and then transmitted to the second market. The process of price discovery is considered between the public and private real estate markets.
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ItemNews effects and structural shifts in price discovery in Hong Kong(KLUWER ACADEMIC PUBL, 2003-09)
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ItemPersonal residential real estate investment in Australia: Investor characteristics and investment parameters(WILEY, 2008-03-01)To date our understanding of the factors affecting the housing supply stem from the private provision of new units through real estate development. This article investigates a different aspect of housing supply, the private provision of rental housing through investment in existing properties. Using logistic regression and a series of micro data sets of Australian households, we examine the investment decision of residential rental property investors over the period 1990–2004. The sample period incorporates a full real estate cycle. Our results indicate that wealth‐related factors are the dominant factors driving these investments. Life‐cycle factors such as marriage and children play a less important role. Most of the determinants of income property investment do not vary with the property cycle. Marriage is an exception. It became more important as house prices rose.