Land and Real Estate in Northeast Asia, New Approaches in an Era of Financialization

Aveline-Dubach, Natacha

doi:10.1142/s101325111602001x

Cited by 4 publications

(3 citation statements)

References 27 publications

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“…The game-changing Urban Renaissance Special Measures Law was introduced in 2002, with the aim of enhancing the global competitiveness of Japan's economy after a decade of stagnation [33,34]. It promoted transit-oriented redevelopment and largescale renewal projects conducted within selected perimeters [35,36]. Thanks to a relaunch of condominium construction, the wards of cities with over 500,000 inhabitants began to attract migrants again, capitalizing on the newfound affordance of their housing supply for certain classes [25,[37][38][39].…”

Section: Literature Reviewmentioning

confidence: 99%

“…But the administrations' continuing "push towards fiscal devolution while carrying out focused urban revitalization" [45] contributed to the political construction of shrinkage as a spatial expression of Japan's widening inequalities [6]. First, the "back-to-the-city" movement, under the influence of real estate securitization, has bolstered Tokyo and the cores of a few metropolises [22,35]; property investments primarily target neighborhoods with high-end commercial and service activities. In mid-size cities, by contrast, the willful application of compact city schemes did not entail strong downtown revitalization, with few exceptions [18].…”

Section: Literature Reviewmentioning

confidence: 99%

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How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

Uto,

Buhnik,

Okazawa

2024

Land

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This study analyzes the differences and similarities between Tier 1 (Tokyo) and Tier 2 (Kansai) metropolitan areas due to shrinking city problems. Both metropolitan areas will see a dramatic decrease in the housing asset value (HAV). Kansai is declining at a faster pace than Tokyo: it is projected that HAVs will register a further decrease of around 38% by 2045, and the decline will be quantitatively more important in the northern suburbs of Osaka. These results raised the question of whether Kansai would be more impoverished by HAV deflation. By focusing on the income multiplier of HAV per household, we find that Tokyo has a higher income multiplier of around 4 (against 2 for Osaka), thus causing much greater HAV deflation per household in Tokyo. Greater HAV deflation per household entails more severe problems for elderly households that need to finance their retirement. Considering our findings, despite earlier and faster trends of HAV deflation in the Tier 2 metropolitan area, the Tier 1 metropolitan area could face big socioeconomic challenges in the future. We conclude that HAV deflation leads to problems of different nature depending on metropolitan rank, rather than just knowing which one is losing more through HAV deflation.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

Uto,

Buhnik,

Okazawa

2024

Land

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“…Among the reasons evoked for explaining China's high relative level of foreign direct investment in real estate (FDIRE) in the APAC region, attempts to build soft power through real estate markets have been pointed out (B€ udenbender and Golubchikov, 2017). Over the last 40 years, China has become a global property superpower with the real estate sector being identified as a "pillar industry of the national economy" (Davies, 2006;Wang, 2011;Aveline-Dubach, 2016). From 1995 to 2019, real estate investments increased from 5% to over 13% of China's gross domestic product (GDP), 70% of which were devoted to residential real estate (Rogoff and Yang, 2020).…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic risk factors and Chinese FDIs in real estate: evidence from the Asia-Pacific public real estate markets

Coën

Lecomte²,

Zaiter³

2022

JPIF

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PurposeThe aim of this study is to shed light on the relative importance of Chinese (Mainland China and Hong Kong: CH-HK) foreign direct investments (FDIs) in real estate (FDIRE) on the dynamics of Asia-Pacific (APAC) public real estate markets after the Global Financial Crisis.Design/methodology/approachUsing a parsimonious real estate asset-pricing model including macroeconomic risk factors, the authors develop a metric to measure FDIs in the real estate sector. The authors use a panel VAR approach based on robust econometric methodology (generalized method of moments) and deal with potential endogeneity and an eventual causality problem. The authors also compute multiple metrics to measure the Chinese, US and Japanese FDIs in the real estate sector.FindingsThe study results report a positive significant impact of CH-HK FDIRE on APAC public real estate returns, while FDIRE originating from outside China are not significant. The authors also show that Chinese investors use the channel of FDIs in Diversified Listed Property Companies (LPCs) and Hotel and Family LPCs to gain exposure to the APAC real estate markets. The study results suggest that APAC property markets are mainly impacted and emphasize the importance of an intercontinental diversification strategy for investors in LPCs in the APAC region.Practical implicationsContrary to Bond et al. (2003) who identified that APAC public real estate markets were overwhelmingly idiosyncratic in the decade preceding China's WTO membership (1990–2001), the study findings underline that Chinese FDIRE became a common factor affecting all eight markets in this study in the decade following the global financial crisis (2007–2017). The results emphasize the importance of an intercontinental diversification strategy for investors in LPCs in the APAC region.Originality/valueThe authors use a parsimonious model, introduce metrics to measure FDIRE and apply a panel VAR approach based on a robust econometric methodology to shed light on China's economic globalization strategy on Asia-Pacific public real estate markets after the GFC. The study results highlighting the major impact of CH-HK FDIRE on securitized real estate market returns dynamics, identify the existence of an Asian common factor driven by Chinese FDI inflows into neighbouring countries.

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Density and precarious housing: overcrowding, sensorial urbanism, and intervention in Hong Kong

Chen,

McFarlane

2023

Housing Studies

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Land and Real Estate in Northeast Asia, New Approaches in an Era of Financialization

Cited by 4 publications

References 27 publications

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

How Are Tier 2 Metropolises Affected by Housing Asset Value Deflation in the Depopulation Era? A Comparison between the Tokyo and Kansai Metropolitan Areas

Macroeconomic risk factors and Chinese FDIs in real estate: evidence from the Asia-Pacific public real estate markets

Density and precarious housing: overcrowding, sensorial urbanism, and intervention in Hong Kong

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