Contestability of the urban land market: an event study of Hong Kong land auctions

Ching, Stephen; Fu, Yuming

doi:10.1016/s0166-0462(03)00005-x

Cited by 46 publications

(51 citation statements)

References 10 publications

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“…Second, we answer the question of whether or not Taiwan's land trading market is a contestable market. Ooi and Sirmans (2004); Ching and Fu (2003) and Hui et al (2010) find that Singapore and Hong Kong are not contestable markets in terms of real estate. Here, we examine the cumulative abnormal returns (i.e., CARs) of the winners of land auctions to settle this issue.…”

Section: Asian Economic and Financial Reviewmentioning

confidence: 99%

“…For example, Ching and Fu (2003) and Ooi and Sirmans (2004) find that the announcements of successful land acquisitions resulted in positive abnormal returns for the acquiring companies. Ching and Fu (2003) further find that the expected abnormal returns are positively related with site values and the government's land disposal levels, but negatively related with property market liquidity. Ooi and Sirmans (2004) attribute the expected abnormal returns to corporate characteristics, including the debt ratios and business foci of the winning bidders.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Second issue has involved the equity market performances of successful bidders in response to news about land acquisitions. There are three major empirical studies examining the abnormal returns of successful bidders in land auction ISSN(e): 2222-6737/ISSN(p): 2305-2147 journal homepage: http://www.aessweb.com/journals/5002 events (Ching and Fu, 2003;Ooi and Sirmans, 2004;Hui et al, 2010). Using data from Singapore and Hong Kong, these studies suggest that stock market gives a positive response for the winners of land auctions.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Identifying Stock Market Reactions to Acquisition Announcements in Taiwan Land Auction

Hwang

2015

Asian Economic and Financial Review

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This paper examines the market reactions to acquisition announcements in Taiwan land auctions. Empirical evidence shows that successful bidders can enjoy significant positive abnormal returns as a result of land auction events. Specifically, successful acquisitions in Taiwan land auction havean intra-industry contagion effect. The land size and the market atmosphere before the auction events benefit the stock market reactions.

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Section: Asian Economic and Financial Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Identifying Stock Market Reactions to Acquisition Announcements in Taiwan Land Auction

Hwang

2015

Asian Economic and Financial Review

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“…Ching and Fu (2003) and Tse et al (2009) studied the impact of land auctions on the share prices of companies who have successfully bid for parcels of land at auction. Ching and Fu (2003) adopted event study methodology to examine abnormal returns on the share price of real estate companies after winning a parcel of land at auction at a price considered to be below fair market value. Their purpose was to test the contestability of the urban land market.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Perhaps the most relevant studies are those on how auctioned land prices affect share prices of the winning real estate companies. For example, Ooi and Sirmans (2004) and Ching and Fu (2003) examine how land auctions affect the share price of the winning company in Singapore and Hong Kong respectively. Our study also examines whether land auction outcomes have any signaling effects, but the focus differs from these two studies in a number of ways.…”

Section: Introductionmentioning

confidence: 99%

Do Unexpected Land Auction Outcomes Bring New Information to the Real Estate Market?

Chau

Wong

Yiu

et al. 2009

J Real Estate Finan Econ

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Land and real estate are intrinsically related but generally traded in two different markets. Vacant land, being a major "raw material" for development of real estate, is traded by developers who actively manage development risk for profit. Real estate, being a long lived final product, is traded by end-users or investors for use or investment in the secondary market. This study examines price discovery between the two markets. The key question is whether land transactions, in the form of public auctions, convey any new information to the secondary real estate market. Our results suggest unexpected land auction outcomes have both market-wide and local effects on real estate prices. However, the impacts are asymmetric. We found that lower than expected land auction prices have a significant negative market-wide and local impact on real estate prices while higher than expect land auction prices have little or no impact.

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Municipal land allocations: integrating planning and selection of developers while transferring public land for housing in Sweden

Caesar

2015

J Hous and the Built Environ

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An essential component in all housing developments is suitable land. Besides being buildable, this implies land approved for housing in a marketable and consequently implementable location. Insufficient supply of suitable land to housing developers could affect the supply of housing. In Sweden, a lot of land appropriate for housing is owned-often since many years back-by municipalities and supplied to developers through the use of 'land allocations'. A land allocation connects a developer and a municipality in a interdependencybased collaboration intended to jointly create an implementable development right, followed by a land transfer. Using semi-structured interviews and questionnaires reaching a total of 26 municipalities and 91 developers, the Swedish land allocation system is investigated; results are presented with emphasis on requirements put on developers, its interaction with the planning process and on the different methods used to select a certain developer. Additionally, the system is reviewed from a developer perspective and put in an international context. While many countries make use of public land for housing, the article shows that the Swedish land allocation system deviates in several aspects and in spite of its long history, there are undoubtedly features considered less well functioning from the developer's point of view.

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Contestability of the urban land market: an event study of Hong Kong land auctions

Cited by 46 publications

References 10 publications

Identifying Stock Market Reactions to Acquisition Announcements in Taiwan Land Auction

Identifying Stock Market Reactions to Acquisition Announcements in Taiwan Land Auction

Do Unexpected Land Auction Outcomes Bring New Information to the Real Estate Market?

Municipal land allocations: integrating planning and selection of developers while transferring public land for housing in Sweden

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