The Significance and Performance of Listed Property Companies in Vietnam

Nguyen, Thi Kim

doi:10.1080/14445921.2010.11104303

Cited by 8 publications

(8 citation statements)

References 33 publications

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“…For example, ref. [48] looked at the spillover effect of macroeconomic issues in the United States, but only looked at the Real Estate Uncertainty Index (REUI). In the United States, ref.…”

Section: Results and Findingsmentioning

confidence: 99%

Volatility Spillover Effect of Pan-Asia’s Property Portfolio Markets

et al. 2021

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This study assesses the spillover effect of the listed property companies that cover pan-Asian countries, namely Malaysia, Thailand, Indonesia, Singapore, Vietnam, South Korea, Japan, China, the Philippines, and Hong Kong. The impact of market integration will create a spillover effect to the countries’ economic performances, in particular the property market. As macroeconomic factors have high correlation with the performance of property security markets, it is therefore important to study the spillover effect by integrating the macroeconomic factors. This study has employed the exponential generalised autoregressive conditional heteroscedasticity (EGARCH) technique to develop the volatility spillover effect among pan-Asian countries. The results reveal high volatility of listed property companies recorded in Hong Kong and China, while Singapore, The Philippines and Japan have shown low volatility spillovers. In terms of macroeconomic factors, gross domestic product (GDP) and money supply (MS) are the most significant factors in influencing the volatility spillover effect among pan-Asian countries. From the standpoint of regional investors, the volatility spillover characteristics of pan-Asian countries will aid property stakeholders in the region in developing their own methods for making investment decisions in the property security market. Furthermore, in uncertain conditions of the financial market, this study will elevate the transparency of the pan-Asian property portfolio market by providing information on the property market volatility spillovers.

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“…For example, ref. [48] looked at the spillover effect of macroeconomic issues in the United States, but only looked at the Real Estate Uncertainty Index (REUI). In the United States, ref.…”

Section: Results and Findingsmentioning

confidence: 99%

Volatility Spillover Effect of Pan-Asia’s Property Portfolio Markets

et al. 2021

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“…From an emerging market outlook, authors such as Tan and Ting (2008), Lee and Ting (2009), Nguyen (2010), Olaleye (2011) and Pham (2012) have examined the effects of real estate in a mixed-asset portfolio. Ramushu (2006) analysed the performance of South African real estate assets in a domestic portfolio containing equities, bonds and real estate.…”

Section: Review Of Relevant Literaturementioning

confidence: 99%

Impact of Adding Securitised Property Into Mixed-Asset Portfolio in Emerging Markets: Evidence From Nigeria

Ayodele¹,

Olaleye²

2016

Sustainable Multi-Sectoral Real Estate Development in Emerging Economies - The 16th African Real Estate Society Conference

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The paper examined the performance of securitised property and analysed its diversification benefits when added into domestic mixed-asset portfolios constructed using Naïve and MPT optimization techniques. The paper also tested the hypothesis that the performance of naïve portfolios with securitised properties is better than naïve portfolios without securitised property. Design/methods: The data comprised quarterly returns of securitised property, all share, Federal bonds, State bonds, Debentures and Treasury bills for years 2000 to 2013. Return-risk analysis was compared using mean return, standard deviation, Sharpe ratio and correlation coefficient. Preliminary analysis was conducted on the data sets to examine the stationarity using the Philip Perron unit root test. In assessing securitised property return enhancements and risk reduction benefits in mixed-asset portfolio, 24 naïve portfolios (18 with securitised property and 6 without securitised property) were constructed and the effectiveness of diversification was assessed for each portfolio. This is in addition to examining the impact of securitised property on optimal portfolios using Markowitz quadratic function. Findings: The results showed that securitised property did not offer superior returns and underperformed most other assets on risk adjusted basis. While the results of the naïve portfolio showed no statistically significant difference in portfolio performance when securitised property was included; the effect was however dependent on the percentage weightings of assets and the asset class being replaced. The MPT analysis showed that along the efficient frontier, securitised property has no percentage allocation in the mixed-asset portfolio. Practi al Implication The study has implications for investors interested in emerging markets like the Nigerian investment market. Originality: It is one of the few attempts within the context of Africa's emerging market and Nigeria in particular.

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“…In terms of property research, there have been an abundance of studies on property research on the various aspects of property performance as well as its features as an investment asset class in Asia (Addae-Dapaah and Loh, 2005; Azmi et al , 2017; Bond et al , 2003; Gerlach et al , 2006; Jin et al , 2007; Liow, 2007, 2008; Liow and Adair, 2009; Liow and Sim, 2006; Mei and Hu, 2000; Nguyen, 2011a, b; Ooi and Liow, 2004; Razali, 2015a, b; Wilson et al , 2007; Wilson and Zurbruegg, 2004). Research has also been conducted for specific Asian countries such as Singapore (Liow, 2000, 2001a, b; Ong and Ng, 2009; Sing and Low, 2000), Hong Kong (Chau et al , 2001, 2003; Newell and Chau, 1996; Newell et al , 2004, 2007; Schwann and Chau, 2003), Malaysia (Azmi et al , 2018; Lee and Ting, 2009; Razali, 2015a, b; Ting, 2002), India (Newell and Kamineni, 2007), China (Newell et al , 2005), Vietnam (Nguyen, 2010) and the Philippines (Nguyen, 2011a, b). This does not only provide investors and academics an indication of the awareness and understanding of a specific property market with its significance in the mentioned context, it also provides a comprehensive overall picture of regional property investment in Asia compared to the remaining world.…”

Section: Introductionmentioning

confidence: 99%

The dynamics of listed property companies in Indonesia

Nguyen

Razali

2020

JPIF

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Purpose As an asset class, listed property companies (PCs) in the emerging Asian markets have taken on increased significance in recent years. Investors have seen Indonesian real estate investment trusts (REITs) being regulated to become a property investment vehicle in 2007. This sees macro-environment investment in the Indonesian property market taking off to a higher level regionally. In the background, Indonesian listed PCs maintain as one of the major investment vehicles for local and international investors. It has also been the subject of investment for REITs and property investment funds in Indonesia. The purpose of this paper is to assess the dynamics of risk-adjusted performances and portfolio diversification benefits of listed PCs in a mixed-asset portfolio context in Indonesia, from July 2006 to December 2018. The sub-periods of pre-global financial crisis (GFC), GFC and post-GFC of listed PCs is also assessed. Design/methodology/approach Using monthly total returns, the risk-adjusted performance and portfolio diversification benefits of listed PCs from July 2006 to December 2018 are assessed, with extended efficient frontiers and asset allocation diagrams used to assess the role of listed PCs in a mixed-asset portfolio. Sub-period analyses are conducted to assess the post-GFC recovery of listed PCs. Findings Listed PCs delivered higher returns but carried higher risks compared to stocks before the GFC, with bonds having both the lowest returns and risks. The impact of the GFC was highest for Indonesian PCs compared to stocks, where properties did not deliver strong risk-adjusted returns. Notwithstanding the poor risk-adjusted performance, Indonesian PCs had low correlations with stocks and bonds, suggesting some level of diversification potential for stock and bond investors. Stocks outperformed listed PCs across the sub-periods and the full period. Over the post-GFC period, both stocks and listed PCs recovered from the crisis, with stocks turning around stronger. This analysis shows a prolonged recovering and slow bouncing adjustment of listed PCs from the economic changes. This research suggests selected listed PCs may be the outperformers, and, a future contract as a hedge form for listed PC to be implemented. Research limitations/implications The use of the indices of Standard & Poor’s Indonesian property total return (for listed PCs) are as follows: MSCI Indonesia total return (for stocks), Indonesia’s ten-year bond’s total return (for bonds) and Indonesia’s three-month bill total return (for cash). This is used to study the Indonesian listed PCs and may have aggregation effects in its underperformance and therefore drawing a negative outcome. The results may reflect the common fact that the majority of listed PCs in Indonesia are property developers, which also sees underperformances in other emerging country markets. Practical implications Listed PCs have been under increasingly adjusted and positively adapted regulations from the Indonesian Government over the post-GFC period. Therefore, in order to attract interest from international investors in property investment in Indonesia, listed PCs need stronger and more efficiently adapted regulations to a competitive level of respective regulations in the region and globally. Notwithstanding the poor performance in the transitional stage, Indonesian listed PCs bring some diversification benefits to local investors who are able to pick the outperformed invested PCs at the right time. Of the on-going concerns, international investors have no restrictions on holding listed PCs in the Indonesian stock market. This provides room for improvement in business performance in listed PCs as a result of regional/global competition and international management being involved. The present study delivers awareness to investors, researchers as well as policymakers on the Indonesian property market. Originality/value This paper is the first published to present a country profile of significant property vehicles (commercial property, listed PCs and REITs). It also presents empirical research analysis of the risk-adjusted performance of listed PCs and its dynamic role in a local investors’ perspective across the pre-GFC, GFC, post-GFC periods. Given the significance of listed PCs in Asia, this research highlights more information for opportunities and on-going property investment issues in Indonesia.

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The Significance and Performance of Listed Property Companies in Vietnam

Cited by 8 publications

References 33 publications

Volatility Spillover Effect of Pan-Asia’s Property Portfolio Markets

Volatility Spillover Effect of Pan-Asia’s Property Portfolio Markets

Impact of Adding Securitised Property Into Mixed-Asset Portfolio in Emerging Markets: Evidence From Nigeria

The dynamics of listed property companies in Indonesia

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