Price discovery in the Hong Kong real estate market

Chau, K.W.; Macgregor, Bryan D.; Schwann, Gregory M.

doi:10.1080/09599910110060064

Cited by 53 publications

(54 citation statements)

References 3 publications

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“…Barkham and Geltner (1995) find that the transmission of information from the public to private markets is faster in the UK than in the US, and suggest that this may be due to greater homogeneity of properties and larger scale of securitization of properties in the UK. Chau et al (2001) report that public market prices in Hong Kong lead private property prices by one quarter, which is in marked contrast to the lags of up to 2 years seen for the UK, Australian and US property markets. The authors attribute the difference to the structural and informational efficiency of the Hong Kong property markets compared with property markets in US, UK and Australia.…”

Section: Literature Review and Backgroundcontrasting

confidence: 47%

Price Discovery in Real Estate Markets: A Dynamic Analysis

Yavaş

Yıldırım

2009

J Real Estate Finan Econ

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Section: Literature Review and Backgroundcontrasting

confidence: 47%

Price Discovery in Real Estate Markets: A Dynamic Analysis

Yavaş

Yıldırım

2009

J Real Estate Finan Econ

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“…The use of excess return over stock market returns also helps remove the effects of any confounding events, 8 such as the Asian Financial Crisis in 1997 and SARS in 2003. Compared with direct real estate, indirect real estate is more liquid and thus can respond to shocks more quickly (Chau et al 2001). Since it may take some time for the direct market to fully reflect exogenous shocks, we use current and lagged returns of excess indirect real estate to model the full effects of changes in residential 6 The Hong Kong bond market is not very well developed and thus the yields of the bonds issued by the Hong Kong Monetary Authority (HKMA Exchange Fund Bills) are not used.…”

Section: Methodsmentioning

confidence: 99%

“…There have been numerous studies on price discovery between direct and indirect real estate markets (e.g Chau et al 2001), 1 and recently a number of studies on spot and presale real estate markets (e.g. Chau et al 2003;Wong et al 2007), but those between direct real estate and land markets are scant.…”

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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“…Presence of a "pure" property factor was further explored in Hong Kong by ;Chau et al (2001);and Newell et al (2004). Indirect property returns were found to be more highly correlated with stock market returns than direct property returns.…”

Section: Linkages Between Direct and Indirect Property Performancementioning

confidence: 99%

Would the Reputation and Behaviour of the Chinese Stock Exchange Be a Disincentive to Investors Considering a Chinese Reit?

Downie

Wang

Xiao³

2010

Proceedings of the 17th Annual European Real Estate Society Conference - Milan, Italy

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China has drawn the world's attention with the emergence, rapid growth and increasing maturity of its real estate market in the past twenty years. Currently the world's third largest economy, China was the second largest Asian country for commercial property transaction capital flows in 2006 (JLL, 2007). International investors have recently shown considerable interest regarding property investment in China, via both direct and indirect property and changes to the rules governing internal funds are likely to initiate high levels of effective demand from domestic institutions too. China is yet to develop a Real Estate Investment trust (REIT) market; despite this investment demand encouragement for development of pilot REITs by the PRC government has waxed and waned with political imperatives to manage market and economic volatility. Chinese REITs would theoretically provide the opportunity for investors to access Chinese "property" returns with liquidity and flexibility and might further play a significant role in stabilising the Chinese capital market in the medium and long term.The purpose of this paper is to examine whether the reputation and behaviour of the Chinese stock exchanges is a disincentive to investors considering a Chinese REIT. This is addressed firstly by assessing Chinese stock market volatility compared to that of the Hong Kong and Singapore stock exchanges. Secondly, a survey was used to explore Chinese domestic investors' attitudes to investment in Chinese property REITs and their preferences amongst the three main Asian stock exchanges where Chinese REITs might potentially be available.

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Price discovery in the Hong Kong real estate market

Cited by 53 publications

References 3 publications

Price Discovery in Real Estate Markets: A Dynamic Analysis

Price Discovery in Real Estate Markets: A Dynamic Analysis

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

Would the Reputation and Behaviour of the Chinese Stock Exchange Be a Disincentive to Investors Considering a Chinese Reit?

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