The Asymmetric Effect of Institutional Quality on Chinese Outward Real Estate Investment

Zhang, Jingjing; Lee, Chyi Lin; Chan, Nelson

doi:10.3846/ijspm.2019.10429

Cited by 16 publications

(17 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Recognising the uniqueness of the Chinese market (e.g., the imperfections of the Chinese financial market [107] and the high level of air pollution in China), the abovementioned contributions can, to a certain extent, be limited to China. To better understand the variations among the impacts of air quality on property prices globally or in other markets, future studies of air pollution impacts on other housing markets are necessary.…”

Section: Discussionmentioning

confidence: 99%

Macro-Impacts of Air Quality on Property Values in China—A Meta-Regression Analysis of the Literature

2021

View full text Add to dashboard Cite

Air pollution has received increasing attention in recent years, particularly in China, due to the rapid industrialisation that has wrought intense levels of air pollution. A number of studies, therefore, have been devoted to quantifying the impacts of air pollution on property value in China. However, the empirical results are somewhat mixed. This naturally raises questions of whether there is a significant relationship between air quality and housing prices and the plausible reasons for the mixed results in previous studies. This study aims to fill this gap by explaining the variations in the findings by a meta-regression analysis. To control for heterogeneity, a weighted least square model was used to explore the factors influencing the magnitude and significance of the air quality effect based on empirical estimates from 117 observations. This study confirms that air quality does have a discernible impact on housing prices beyond the publication bias. Besides, the types of air quality indicator and the air data source do significantly influence estimates through affecting both the magnitude of the elasticity and the partial correlation coefficient (PCC). Further, the selections of control variables and estimation approaches also have significant impacts on estimates. This study also finds that published papers tend to be biased towards more economically significant estimates. The implications of the findings have also been discussed.

show abstract

Section: Discussionmentioning

confidence: 99%

Macro-Impacts of Air Quality on Property Values in China—A Meta-Regression Analysis of the Literature

2021

View full text Add to dashboard Cite

show abstract

“…For instance, Sadayuki et al (2019) found that markets with higher transparency have less information asymmetry and attract more inward real estate investment. Furthermore, Zhang et al (2019) also found that transparency impacts foreign real estate investment, but it is conditional on the market size and the country's economic growth. This study, therefore, suggests that the lack of transparency in emerging markets may impact the search cost regardless of the risk-averse strategy of investors (Adair et al , 2006).…”

Section: Literature Reviewmentioning

confidence: 99%

Sale and leaseback to market cap rate ratio in emerging markets – an empirical study in Vietnam

Truong

Yiu

2021

JPIF

View full text Add to dashboard Cite

PurposeThis study hypothesises that sale and leaseback (SLB) cap rate is lower than the market cap rate in emerging economies, and the difference is due to institutional cost and vacancy risk. This study aims to provide a novel SLB-Cap-Rate Model to assess the performance of SLB transaction (SLBT).Design/methodology/approachSLBT data are generally not publicly available in developing countries. This study collected data from 31 SLBTs by conducting semi-structured interviews with stakeholders in Vietnam in 2019. The market cap rates were collected from consultants' reports. The hypotheses are tested by three regression models.FindingsThe results show that the SLBT cap rate is significantly less than the market cap rate in Vietnam, and most of the cap rate discount can be explained by institutional and risk factors. This suggests that SLBT helps to reduce search costs for tenants and vacancy risks. It explains why SLBTs are becoming more common in emerging countries.Practical implicationsThe study has a strong practical implication for assessing the performance of SLBT for both buyers and sellers. It introduces a novel model for analysing the cap rates and potential risks of SLBT to facilitate property investment decisions.Originality/valueThis paper is one of the studies that contains new knowledge on SLBs in a developing country specifically Vietnam.

show abstract

“…China's outward foreign direct investment (OFDI) has rapidly increased in recent years, with real estate representing one of the fastest-growing sectors. For real estate investment from emerging economies such as China, advanced markets in Australia, Europe, and North America are becoming prime targets in light of favorable market conditions and promising prospects for stable returns (Liang et al, 2019a; Wong, 2017b; Zhang et al, 2019). In the U.S., from 2015 to 2018, Chinese buyers 1 ranked as the top foreign investors in the U.S. real estate market (National Association of Realtors, 2020).…”

Section: Introductionmentioning

confidence: 99%

The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

Bennett

Jiang

2022

Environ Plan A

View full text Add to dashboard Cite

Since the 2010s, foreign direct investment in real estate (FDIRE) by Mainland Chinese firms has emerged as a major force within global real estate markets, challenging Western investors’ traditional dominance. It is unclear, however, whether Mainland Chinese FDIRE is fueled by the same motivations as those of investors from advanced economies, which to date have represented both the primary investors and main objects of study. One major difference may be that Mainland Chinese investment originates in an institutional environment comprised of strong state intervention and social networks important for fostering business and ethnic ties. To uncover the potentially unique determinants and heterogeneity of Mainland Chinese corporate real estate investors, we build and analyze a state-level panel dataset of Mainland Chinese FDIRE by state-owned enterprises and private enterprises in the U.S. from 2010 to 2017. Our empirical results reveal the importance of Chinese migrants in promoting Mainland Chinese real estate investment, especially by private enterprises. Our findings also demonstrate that at the state level, Mainland Chinese FDIRE exhibits few agglomerative tendencies.

show abstract

The Asymmetric Effect of Institutional Quality on Chinese Outward Real Estate Investment

Cited by 16 publications

References 43 publications

Macro-Impacts of Air Quality on Property Values in China—A Meta-Regression Analysis of the Literature

Macro-Impacts of Air Quality on Property Values in China—A Meta-Regression Analysis of the Literature

Sale and leaseback to market cap rate ratio in emerging markets – an empirical study in Vietnam

The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks

Contact Info

Product

Resources

About