Rental adjustment equations have been estimated for a quarter century. In the U.S., models have used the deviation of the actual vacancy rate from the natural rate as the main explanatory variable, while in the UK, drivers of the demand for space have dominated the estimation. The recent papers...

It is argued that money/credit supply is neutral with respect to the real sector. Existing studies have focused on the relationship between money supply and national output. However, this paper using data from Hong Kong (first quarter 1983-second quarter 1997) examines the extent to which...

The elements of sales comparison for residential property depend on a package of inherent attributes that are valued by consumers. These attributes can be classified into the following categories: structural, physical, neighbourhood and environmental. A model that incorporates adjustments for...

Purpose: This paper aims to examine the behavior of “rational” residential developers, under game theory, for their pricing strategy in a competitive environment. Design/methodology/approach: Results show that residential developers cooperate implicitly for long-term benefit, leading to a...

Purpose – The purpose of this paper is to present results from a pilot research into the Chinese real estate confidence index, called CRE index, with regard to three diverse aspects, including effective demand and supply, potential demand, and potential supply, and to develop an effective tool...

It is well known that the traditional net present value (NPV) approach fails to take account of the multiple effects arising from the interactions of the operating and strategic flexibility during the course of a project. Option pricing theory (OPT) has been successfully applied in the valuation...

This study investigates property securities bubbles and crashes by using a dynamic mathematical methodology developed from the previous research (Watanabe et al. 2007a, b [31,32]). The improved model is used to detect the bubble and crash periods in five international countries/cities (namely,...

Mobility has wide‐range impacts on the financial management of property issues, such as consumption and investment. In the literature of residential mobility, household life cycle is widely acknowledged as an important concept. An array of household demographic factors such as age has been...

Purpose – The purpose of this paper is to apply a risk‐based option‐pricing framework for property developers to come up with the critical investment timings, based on their tolerance of risk. Design/methodology/approach – The viability of a project is subject to the potential benefit...

Purpose – The objective of this paper is to demonstrate that the Pygmalion hypothesis is supported in the housing market and the hypothesis that investors are, all too frequently, unrealistically over‐optimistic cannot be rejected. Design/methodology/approach – The methodology in the paper...