In the context of increasing urbanisation, growth of informal settlements and the urbanisation of poverty, this article suggests a conceptual framework to link urban informal property markets and poverty alleviation. Using conceptual tools of the new institutional economics, principally theories of transaction costs and property rights, the framework describes theoretical conditions under which property markets may be a mechanism for capital accumulation for the urban poor. The article highlights knowledge gaps in the literature and argues that the institutional approach holds the most promise for analysing the interface between informal property markets and poverty alleviation.
Purpose – The purpose of this paper is to determine whether anchoring and adjustment as heuristic-driven bias and herding behaviour influences listed property fund managers in South Africa’s property investment decisions. The study contributes to the understanding of the influence of heuristic-driven bias and herding behaviour on property investment decisions made in a highly volatile environment. Design/methodology/approach – This study is focused on the subject field of behavioural finance and follows a survey-based design. A questionnaire was finalised after completion of the pilot study and was sent via e-mail to fund managers of all South African-based property funds listed on the Johannesburg Securities Exchange. Non-parametric statistical measures were used. Findings – Consistency with other studies suggests that anchoring and adjustment may exist in the decisions made by listed property fund managers. However, fund managers tend to not adjust to new information due to the current socio-political environment in South Africa rather than a lack of understanding of the new information. Practical implications – It is recommended that investors form developed and emerging economies take notice of the highly volatile circumstances in which property fund managers in an emerging economy such as South Africa have to make investment decisions. The probability of missed gains as a result of conservative investment strategies may have an impact on future returns. Originality/value – This study enhanced the understanding of the role that heuristic-driven bias plays in the South African property industry and more importantly, it went some way towards enhancing understanding of behavioural aspects and their influence on property investment decision making in an emerging market.
This paper provides an overview of real estate educational programmes currently being offered in the Republic of South Africa as well as the role of the South African Property Education Committee in this respect. The emphasis is on programmes offered by formal tertiary educational institutions (i.e. universities and technikons) as well as on programmes offered by the major professional bodies in the field of real estate. Both undergraduate and post‐graduate courses at all universities and technikons are addressed and the implications of recent developments in this field are indicated. The background to the recently established national qualifications framework (NQF) is sketched and the present progress with the implementation of the outcomes‐based NQF with regard to real estate education is summarised. This overview provides a sound basis for comparing real estate educational programmes in South Africa with those offered in other countries.
Pre-1994 apartheid laws had a marked impact on urban land use patterns in South Africa. A new government came into power in 1994 and the Group Areas Act had been abolished. The resultant integration of residential suburbs was initially slow, but is occurring at an increasing rate. In this paper, relocation patterns in Johannesburg and Pretoria are analysed. Analysis of the process indicates that the socio-economic status and the affordability levels of the home-buyer will drive the relocation process. Integration levels will initially be highest in low-and middle-income residential areas. Shopping centres in certain areas had to change their products and tenant mix to cater for the specific needs of new black residents, while the increasing integration of residential areas will also have an impact on the location of office firms. Attention is drawn to certain similarities with the process of residential integration in the USA.
Behavioural finance describes investors' and managers'behaviour in terms of their interactions, andhow their behaviour subsequently influences financial and capital markets. One aspect of behavioural finance, frame dependence, reflects the fact that decision-makers may model decisions about problems using subjective frames. Such decisions may lead to errors in judgement. This study's objective was to determine whether frame dependence influences listed property fund managers in South Africa's property investment decisions.Therefore, the study examinedquestionsrelating to the disposition effect and loss aversion,as well asfactors influencing selling decisions and the time and difficulty involved in making buying and selling decisions. The study surveyed the fund managers of all South African-based property funds listed on the Johannesburg Securities Exchange (JSE). Non-parametric statistical measures were used.The resultsreveal the presence of the disposition effect and a strong desire to cut losses as a motivating factor to sell a property. In the context of the difficulties associated with, and time spent in, buying new properties, it appears that South African property fund managers are, to some extent, lossaverse. This study recommends that fund managers be alerted to the presence of frame dependence in their decisions, so that they canincorporate it in their normative investment strategies.They need to know that they are loss averse in their investment decision-making, resulting ina possible loss of perfectly positioned, profitable investment opportunities. This study expands the body of knowledge surrounding property investment decision behaviour in an emerging market.
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