Information Frictions in Real Estate Markets: Recent Evidence and Issues

Broxterman, Daniel; Zhou, Tingyu

doi:10.1007/s11146-022-09918-9

Cited by 7 publications

(4 citation statements)

References 362 publications

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“…The need to bring about an in-depth understanding of prices and values attributed to residences or houses has been very important. Broxterman & Zhou (2022) argued that a continuous gradual rise responding to market values (sales and rental) of residential properties increasing over time and to forces of demand and supply is evident in the increase in cost of construction and difficulty in the acquisition of land. It is against this backdrop that this study seeks to assess the rising residential rental values in Rantya-Gyel in the last ten years.…”

Section: Statement Of the Problemmentioning

confidence: 99%

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Assessment of the Variations in Residential Rental Values in Rantya-Gyel Jos, Plateau State, Nigeria

Benshak,

Adepetu,

Aliboh

2024

AJESRE

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This study has investigated the changing residential rental values in Rantya-Gyel from 2009 to 2019. The main objective was to determine the extent and trend of changes in residential rental values of different categories of accommodation. The study hypothesised that residential rental values have witnessed significant increases, that the increases were demand-driven; and that the type of accommodation demanded by tenants was influenced by their demographic and socio-economic status. Questionnaire-based interviews and direct field observation were used to elicit information from landlords, property agents and tenants. The Statistical Package for Social Sciences (SPSS 17) software package was employed in analysing rent values, socio-demographic characteristics of tenants and types of accommodation. The chi-square and analysis of variance (F-ratio) techniques were employed in testing the hypotheses. The study found that the rent of different categories of accommodation had gone up by more than three-fold and most of the tenants (Christians) came from Jos north. Rental values doubled during the said period of investigation, housing types were mostly 2-bedroom flats and occupation/income was significantly related to accommodation. Demand and supply factors, as well as market forces, were identified as reasons why rental values in Rantya-Gyel tended to appreciate from 2009 to 2019. The study therefore recommends that the government should formulate policies and put in place strategies that increase the supply of housing in Rantya-Gyel and enhance integration.

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Section: Statement Of the Problemmentioning

confidence: 99%

“…The proximity of Rantya-Gyel to Jos compels many to move to this area and since most of them cannot acquire land, renting becomes an accommodation option (Amenyah & Fletcher, 2013). Broxterman & Zhou (2022) revealed a sustained demand for land in all locations in Jos and a corresponding increase in peri-urban areas.…”

Section: Statement Of the Problemmentioning

confidence: 99%

Assessment of the Variations in Residential Rental Values in Rantya-Gyel Jos, Plateau State, Nigeria

Benshak,

Adepetu,

Aliboh

2024

AJESRE

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“…An added dimension to informational efficiency is the positive influence that market transparency exerts on the provision of appropriate information that might likely support efficient transfer of property rights especially in developed markets (Nozeman, 2010). Notwithstanding, the theory of informational efficiency is a pathway of (property) market efficiency, but with emphasis on the timely capture of all available information about the asset and the traded market in the asset prices and indices; as well as the issue of information asymmetry associated with asset transactions (Broxterman and Zhou, 2023). Therefore, this pathway to the theory of market efficiency does not equally appear to be applicable to the evaluation of the efficiency of distressed property sales.…”

Section: Efficacy Of Sale Efficiency Of Sale Source: Authors' Review ...mentioning

confidence: 99%

Efficiency of distressed property sales in Lagos city, Nigeria

Ataguba,

Ugonabo

2023

LJE

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With recourse to data obtained from the online multiple listing services (MLS) of the Nigerian Property Centre, this study evaluated the efficiency of sale of distressed properties in Lagos city using a 6-month interval of observations protocol, comprising of listings of less than 6 months, 7 to 12 months, 13 to 18 months, and 19 to 24 months respectively. Time-on-the-market (TOM) in this study was perceived to be the duration (in months) from the listing date to the date of data collection. Results of selected parametric and non- parametric statistical tests indicated that there was an insignificant difference in the observation of distressed properties that have remained on the market for at most 6 months and those with marketing time beyond 6 months. Similarly, properties listed for distressed sales in Lagos city were found to have continuously attracted lower purchase rates in the same manner as the non-distressed properties. These results avowed the phenomenon of inefficient sale of distressed properties in Lagos city, Nigeria. It was recommended by the study that individuals and institutions in property brokerage business in Lagos city should conduct a risk assessment of the diminishing likelihood of distressed sales and the incremental losses associated with lengthy listing periods.

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“…Whether arising from agency-principal misalignment of interests or internal valuation errors, these agency problems can lead to operational inefficiencies decreasing the firm value. Considering the private and decentralized nature of real estate markets (Broxterman and Zhou, 2023), real estate firms can also be expected to be prone to such agency problems.…”

Section: Introductionmentioning

confidence: 99%

International diversification and European firm value: the role of operating efficiency

Ibrahim,

Falkenbach

2023

JERER

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PurposeThis study aims to investigate the impact of international diversification on the value and operating efficiency of European real estate firms.Design/methodology/approachThe study is conducted using a panel fixed effects regression model to estimate the relationship of international diversification with firm value and operating efficiency. International diversification is mainly measured via the negative of the Herfindahl–Hirschman Index (HHI) using property-level data. Firm value and operating efficiency are proxied by financial ratios observed annually from 2002 to 2021 at the firm level.FindingsThe results demonstrate that international diversification has a negative effect on firm value. Additionally, it lowers operating efficiency by weakening a firm's ability to generate operating earnings from its assets. By examining whether the reduction in operating efficiency is due to the rental income channel or the capital gains channel, the authors find strong statistical evidence that international diversification negatively impacts capital gains. International diversification is negatively associated with net gains from property valuations (unrealized capital gains) and net profits from property disposals (realized capital gains).Research limitations/implicationsThe empirical analysis is limited to Europe.Originality/valueThis paper extends the geographical diversification literature. While existing literature focuses on domestic diversification within the United States, this paper explores the effects of international diversification on European real estate firms. To the extent of the authors' knowledge, this is the first paper to examine the impact of geographical diversification on capital gains.

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Information Frictions in Real Estate Markets: Recent Evidence and Issues

Cited by 7 publications

References 362 publications

Assessment of the Variations in Residential Rental Values in Rantya-Gyel Jos, Plateau State, Nigeria

Assessment of the Variations in Residential Rental Values in Rantya-Gyel Jos, Plateau State, Nigeria

Efficiency of distressed property sales in Lagos city, Nigeria

International diversification and European firm value: the role of operating efficiency

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