Real estate market factors and foreign real estate investment

Fereidouni, Hassan Gholipour; Masron, Tajul Ariffin

doi:10.1108/jes-05-2011-0066

Cited by 29 publications

(13 citation statements)

References 50 publications

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“…For China, He and Zhu (2010) showed that aside from satisfactory demographic conditions, already invested foreign capital attracts both foreign developers as well as more crossborder investors. In addition, Rodríguez andBustillo (2010), Gholipour Fereidouni andAriffin Masron (2013) and Farzanegan and Gholipour Fereidouni (2014) observed marketspecific property prices to be influential. Interestingly, Gholipour Fereidouni and Ariffin Masron (2013) found real estate market transparency to be an important determinant for foreign investors, but Farzanegan and Gholipour Fereidouni (2014) did not confirm this finding.…”

Section: Related Literature and Hypotheses Derivationmentioning

confidence: 98%

Do cross-border investors benchmark commercial real estate markets?

Oertel

Willwersch

Cajias³

2020

JERER

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Purpose The purpose of this study is to introduce a new perspective on determinants of cross-border investments in commercial real estate, namely, the relative attractiveness of a target market. So far, the literature has analyzed only absolute measures of investment attractiveness as determinants of cross-border investment flows. Design/methodology/approach The empirical study uses a classic ordinary least squares estimation for a European panel data set containing 28 cities in 18 countries, with quarterly observations from Q1/2008 to Q3/2018. After controlling for empirically proven explanatory covariates, the model is extended by the new relative measurement based on relative yields/cap rates and relative risk premia. Additionally, the study applies a generalized additive mixed model (GAMM) to investigate a potentially nonlinear relationship. Findings The study finds on average a ceteris paribus, statistically significant lagged influence of the proxy for relative attractiveness. Nonetheless, a differentiation is needed; relative risk premia are statistically significant, whereas relative yields are not. Moreover, the GAMM confirms a nonlinear relationship for relative risk premia and cross-border transaction volumes. Practical implications The results are of interest for both academia and market participants as a means of explaining cross-border capital flows. The existing knowledge on determinants is expanded by relative market attractiveness, as well as an awareness of nonlinear relationships. Both insights help to comprehend the underlying transaction dynamics in commercial real estate markets. Originality/value Whereas the existing body of literature focuses on absolute attractiveness to explain cross-border transaction activity, this study introduces relative attractiveness as an explanatory variable.

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Section: Related Literature and Hypotheses Derivationmentioning

confidence: 98%

Do cross-border investors benchmark commercial real estate markets?

Oertel

Willwersch

Cajias³

2020

JERER

View full text Add to dashboard Cite

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“…The difficulty in accessing development funds, underdeveloped mortgage market and high interest rates, land tenure arrangements, lengthy building permit/warrant approval and land acquisition and registration processes discourage real estate investments in Ghana [33]. Similarly, sound financial and economic structure, stability of the economy, restrictions and regulations on investors and legal regulation are the most important issues affecting the market attractiveness in Southeast Asian cities [41].…”

Section: Economic Factorsmentioning

confidence: 99%

“…The underlying cost of labor, land and materials in delivering the housing to the market is a concern. Lower financing costs and higher levels of transparency in real estate market attract greater amounts of real estate investment [41]. In addition, transaction and building material costs influence development in real estate [15], [20], [28].…”

Section: Finance and Related Costsmentioning

confidence: 99%

Towards Sustainability of Real Estate Development: An Integrative Review of Smart City Planning Considerations

Okoro¹,

Andre²,

Marno³

2020

Proceedings of the Creative Construction E-Conference 2020

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With the ever-increasing urban sprawl in African cities, more attention should be paid to the provision of real estate infrastructure to cater for the population. Ways to harness Africa's possibilities and leverage the opportunities available in the fourth industrial revolution, to diminish housing infrastructure backlogs, warrant consideration. The current study therefore aims to identify the factors that influence the sustainability of real estate developments in recent times, with attention to the planning considerations. An integrative review was conducted with literature from databases including Scopus, Google, Google Scholar, Publish or Perish, Academic Search Complete and Emerald. Synthesis was undertaken using thematic content analysis to identify themes on the factors influencing real estate developments and its sustainability. The distillation of literature revealed that institutional and economic factors were considered the most important factors, while developer's attitude and socio-cultural factors were the least occurring among the sampled literature. By establishing these factors, the current study provides important information for housing and construction stakeholders to be informed and guided in the planning and implementation of real estate development policies in order to provide for and sustain the needs of the current population and future generations given the need for smart cities.

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“…A number of processes have affected the real estate market in Australia. The literature on Australian cities has usually focused on foreign capital flows and individual investments at a macro level during the boom period [16,[18][19][20]. However for the foreign property investment 'bust' period, there has been little academic work undertaken.…”

Section: Empirical Research Gap Analysismentioning

confidence: 99%

Sustainable Policy Dynamics—A Study on the Recent “Bust” of Foreign Residential Real Estate Investment in Sydney

et al. 2019

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We undertook an autopsy of the drivers of individual foreign real estate investment ‘bust’ in Australia through a new theoretical lens of ‘habitus’. Our autopsy data drew contours around the individual foreign real estate capital ‘boom and bust’ cycle, as well as the long-term commitment of professionals in the real estate sector to Australia’s real estate market. More specifically, we showed that the foreign capital ‘boom and bust’ cycle began in earnest in about 2010 (starting at A$8.7 billion), grew to A$72.4 billion in 2016–2017, and then declined to A$12.5 billion in 2017–2018. This decline in foreign capital into Australian real estate occurred within a domestic real estate market in Sydney that also started to slow in 2017. Based on 20 semi-structured interviews with real estate professionals in Sydney and public material culture data, we found out that the off-the-plan apartment sales and global policy landscape changes contributed to the decline of foreign real estate investment in Australia. The three possible implications for Sydney’s future residential real estate development: (1) The loss of investors, (2) the evolution of the labor force, and (3) the diversification of housing products, have been raised as part of a future research road map.

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Real estate market factors and foreign real estate investment

Cited by 29 publications

References 50 publications

Do cross-border investors benchmark commercial real estate markets?

Do cross-border investors benchmark commercial real estate markets?

Towards Sustainability of Real Estate Development: An Integrative Review of Smart City Planning Considerations

Sustainable Policy Dynamics—A Study on the Recent “Bust” of Foreign Residential Real Estate Investment in Sydney

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