Analysis of the Viability of an Urban Renewal Project under a Risk-Based Option Pricing Framework

Hui, Eddie C.M.; Ng, Ivan; Lo, Kak-keung

doi:10.1061/(asce)up.1943-5444.0000047

Cited by 27 publications

(14 citation statements)

References 16 publications

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“…On the other hand, the effects of these individual attributes can also be identified and analysed separately by the HPM (Hui et al, 2011). The HPM possesses a greater strength and capacity to analyse and interpret the implicit relationships between the residential property prices and its characteristics.…”

Section: Theoretical Framework and Model Specificationmentioning

confidence: 99%

“…Given this background, the hedonic pricing model (HPM) can be effectively used to estimate the residential property price derived from these attributes, because HPM allows the total property value to be broken down into the values of small attributes (Hui, Ng, & Lo, 2011). On the other hand, the effects of these individual attributes can also be identified and analysed separately by the HPM (Hui et al, 2011).…”

Section: Theoretical Framework and Model Specificationmentioning

confidence: 99%

See 1 more Smart Citation

The impact of anticipated transport improvement on property prices: A case study in Hong Kong

Jayantha

Lam

Chong³

2015

Habitat International

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Section: Theoretical Framework and Model Specificationmentioning

confidence: 99%

Section: Theoretical Framework and Model Specificationmentioning

confidence: 99%

The impact of anticipated transport improvement on property prices: A case study in Hong Kong

Jayantha

Lam

Chong³

2015

Habitat International

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“…Moreover, NURBS can provide tools such as rendering, shades, visibility, and transformation for terrain analysis. Models produced by NURBS curves can be used for Visibility Analysis with ray tracing and division methods; therefore, computing process is very fast and deal with terrains in relatively small file sizes [10].…”

Section: Process Of Visibility Analysismentioning

confidence: 99%

“…However, it has been limited for reflecting visual perceptions and visibility distances since it simply accumulates visibility values of single viewpoints using bit data (0 and 2 datasets). Therefore, Cumulative Visibility Analysis which takes human perception into accounts has been required [10]. Vector methods can compute visible distance from targets; whereas, raster based methods only produce Visibility Analysis with simple accumulation bits by bits.…”

Section: Process Of Visibility Analysismentioning

confidence: 99%

Development of 3D Visibility Analysis Models Using NURBS in A Residential Development

Choongsik¹,

Ko²,

An³

2015

IJSH

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Within planning process, landscape visibility assessment has advantages of identifying landscape character and changes. As a planning tool, planners and other professionals are able to exam various planning scenarios effectively. However, current visibility analysis maps have been produced under raster driven information, which lacks in detail and its accuracy. In response of current phenomena of production of landscape visibility analysis and adaptation within planning process, the research aimed to develop an advanced visibility analysis programme based on vector data (NURBS) in order to improve accuracy of the process and result. In order to rectify of the new application, a residential development in Seoul has been chosen as case study. With newly produced visibility analysis produced from VE3D, the study analyses terrain, high-rise building blocks and any built up structures in 3D forms. After case study, VE3D which was developed for visibility analysis from vector-based datasets was able to illustrate high level of detail in visibility identification better than using conventional Arcview 3.3 programme. Moreover, VE3D can produce a visibility analysis in reflecting complicated structures such as flyovers and high-rise tower blocks. The research also suggests that VE3D is able to contribute to in-depth and credible visibility analysis and this can be achieved by further research on application within various terrains and built up structures.Copyright ⓒ 2015 SERSC 157 VE3D, NURBS/vector dataset based, is able to handle visibility analysis process in higher accuracy than ArcView, which is based on raster type methods.

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“…If NPV of a project is taken as the underlying asset in the ROV, the hypothesis could not be satisfied because the underlying assets can have a zero, or negative, value. Therefore, various studies focused on the ROV with the volatility of cash inflow (revenue) from a project as the underlying asset [2,10,12,[22][23][24][34][35][36][37][38]. Additionally, the volatility of both cash outflow and cash inflow is a critical factor affecting the value of the project.…”

Section: Two-color Rainbow Options Valuationmentioning

confidence: 99%

Probabilistic Cash Flow-Based Optimal Investment Timing Using Two-Color Rainbow Options Valuation for Economic Sustainability Appraisement

2017

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This research determines the optimal investment timing using real options valuation to support decision-making for economic sustainability assessment. This paper illustrates an option pricing model using the Black-Scholes model applied to a case project to understand the model performance. Applicability of the project to the model requires two Monte Carlo simulations to satisfy a Markov process and a Wiener process. The position of project developers is not only the seller of products, but it is also the buyer of raw materials. Real options valuation can be influenced by the volatility of cash outflow, as well as the volatility of cash inflow. This study suggests two-color rainbow options valuation to overcome this issue, which is demonstrated for a steel plant project. The asymmetric results of the case study show that cash outflow (put option) influences the value of the steel plant project more than cash inflow (call option) does of which the discussion of the results is referred to a sensitivity analysis. The real options valuation method proposed in this study contributes to the literature on applying the new model, taking into consideration that investors maximize project profitability for economic sustainable development.

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Analysis of the Viability of an Urban Renewal Project under a Risk-Based Option Pricing Framework

Cited by 27 publications

References 16 publications

The impact of anticipated transport improvement on property prices: A case study in Hong Kong

The impact of anticipated transport improvement on property prices: A case study in Hong Kong

Development of 3D Visibility Analysis Models Using NURBS in A Residential Development

Probabilistic Cash Flow-Based Optimal Investment Timing Using Two-Color Rainbow Options Valuation for Economic Sustainability Appraisement

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