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1 – 10 of over 8000Chee Wei Cheah and Kian Yeik Koay
Drawing on the structural hole-bridging perspective of network theory, this paper aims to examine the adaptation strategies undertaken by housing industry actors following the…
Abstract
Purpose
Drawing on the structural hole-bridging perspective of network theory, this paper aims to examine the adaptation strategies undertaken by housing industry actors following the recent pandemic.
Design/methodology/approach
A qualitative case study was adopted as the research methodology for this research. Data collected through online interviews involving 20 participants was used as primary data, while document analysis (both online and printed documents) was used as secondary data. The interviews were guided by the visual vignette method.
Findings
This study’s findings indicate that a health-based crisis like COVID-19 triggers housing developers to act outside their comfort zones. They undertake arbitrage and collaborative brokerage strategies to cope with business uncertainties. This study revealed the contextual embedding of the owner-occupier market (consumer market) and the investor market (business market). This study also revealed that firms that aggressively located structural holes and built new relationships in B2C and B2B markets before the COVID-19 pandemic were well-equipped to face turbulent times.
Practical implications
The innovative strategies that housing developers adopt are transferable and applicable to other industries and countries. Therefore, awareness of these strategies is essential for industry practitioners, especially those badly hit by health-based crises.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study that combines relationship management, structural holes, the housing market and their implications for crisis adaptation. This study examined the grossly understudied phenomenon of demand for housing, which is a durable good, during a turbulent time. The findings of this study provide beneficial guidance for firms, buyers and policymakers facing COVID-19 and/or other similar crises.
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Seow Eng Ong, Woei Chyuan Wong, Davin Wang and Choon Peng Lai
The purpose of this paper is to examine the effect of visual technology on the price discovery process in listings of residential properties in Singapore from 2015 to 2018.
Abstract
Purpose
The purpose of this paper is to examine the effect of visual technology on the price discovery process in listings of residential properties in Singapore from 2015 to 2018.
Design/methodology/approach
The authors empirically model the effects of 360 virtual tours and drone video on four dimensions in price discovery – buyers’ arrival rate, sale probability, transaction prices and time-on-market – using a comprehensive data set for the residential properties in Singapore.
Findings
The analysis shows that the availability of virtual tours or drone video in a listing increases the arrival rate from potential buyers, the probability of a successful sale and the selling price. These findings are consistent with the hypothesis that technologically enhanced tools improve the quality of information and the marketability of property. However, listings with virtual tours tend to be associated with longer marketing time, which is consistent with the prediction of the information overload hypothesis.
Research limitations/implications
This paper extends the housing and price discovery literature by examining how technologically enabled new information affects property transactions.
Originality/value
To the best of the authors’ knowledge, this is the first paper to consider the impact of drone video on property market outcome.
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The learning outcomes of this study are as follows: identify key elements of luxury branding in the context of a new residential real estate brand; select target segment/s and…
Abstract
Learning outcomes
The learning outcomes of this study are as follows: identify key elements of luxury branding in the context of a new residential real estate brand; select target segment/s and outline the sales pitch for a luxury residential real estate brand; plot the pre-sales stage of the customer journey path (CJP) for a luxury residential real estate brand; and plan a pre-sales customer engagement strategy for a luxury residential real estate brand.
Case overview/synopsis
This case enumerates Aldeola de Siolim, Goa’s (ASG) pre-sales promotional challenges. ASG was an upcoming luxury residential property in Goa, India. Venky Infar – the developer of ASG – a family-owned civil construction firm – wanted to diversify into Goa’s vibrant luxury housing market. In India’s housing market, the success of a project often depends on the “pre-sales,” i.e. attracting target customers and maximizing the sales before the construction. V. Rama Rao, the project manager’s task, was challenging because ASG and Venky were new entrants in a mature and competitive market. However, Rao was determined to capture a slice of this lucrative market. The case discusses the following four points to help the students understand the marketing challenges and decision context. First, ASG’s key attractions, second, overview of the Indian real estate market, third, characteristics of Goa’s luxury home market and finally, Customer Journey Path for residential real estate purchase. The case elaborates on the nuances of strategic dilemmas and and presents competitors' practices and emerging consumer trends.
Complexity academic level
The case will help students analyze and formulate a pre-sales promotional plan for a luxury real estate product. It is suitable for marketing elective courses, e.g. branding, sales management and luxury management.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 8: Marketing
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Cong Liang, Eddie Chi Man Hui and Tsz Leung Yip
This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants.
Abstract
Purpose
This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants.
Design/methodology/approach
This paper adopts the fixed effects time-on-market (TOM) model and pricing model to study the research question.
Findings
Urban rehabilitation lifts the subdivided units (SDUs’) prices by around 7%. For the SDU located in old districts, urban rehabilitation gives rise to the rental price up by 11%–12%. The SDUs in the area without urban rehabilitation experience a short marketing period of 16%–17%. The SDU located in the old district that is without urban rehabilitation would have a short marketing time.
Originality/value
To the best of the authors’ knowledge, this is the pioneering research to investigate the relationship between rehabilitation and low-income rental housing from the improved search theory. The improved search theory posits that under the circumstance of urban rehabilitation, low-income tenants’ options are limited and the search behavior will be restricted in the affordable areas, and then TOM will be shortened. With the concentration of SDUs in Hong Kong, the test of the search theory is broken down into two hypotheses. (H1) Urban rehabilitation leads to low-income housing prices increase. (H2) Low-income housing located in areas without urban rehabilitation has a shorter TOM.
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Trade centers are operationally run by a property manager as a delegate of the property owner. The dimensions of service quality (SERVQUAL), which include tangibles, assurance…
Abstract
Purpose
Trade centers are operationally run by a property manager as a delegate of the property owner. The dimensions of service quality (SERVQUAL), which include tangibles, assurance, empathy, reliability and responsiveness, are vital to be implemented as the duties of property managers when providing service to tenants to maintain tenant satisfaction and property reputation. This study aims to understand the effects of the SERVQUAL dimensions, the role of property management and the quality of rental value on tenant satisfaction and property reputation.
Design/methodology/approach
The sample was gathered using the purposive sampling technique with the criteria of being a tenant and kiosk owner in trade center properties in Surabaya. Data were gathered using questionnaires, from which 100 respondents were acquired. It was then analyzed using the partial least square structural equation model (SEM) in the SmartPLS 3.0 program to test the hypothesis.
Findings
The results of this study prove that the SERVQUAL dimensions – assurance, empathy and responsiveness – significantly influence tenant satisfaction with the mediating variable of the role of property management. Moreover, the SERVQUAL dimensions – empathy, reliability and responsiveness – significantly influence property reputation with the mediating variable of the role of property management.
Practical implications
Property managers are expected to proactively map out different service measures related to the dimension of satisfaction by conducting service training programs for their employees. In fact, in the post-pandemic period, property managers require new marketing strategies, such as leaseback, to effectively carry out renovations of the trade center’s public facilities and restructure the tenant mix.
Originality/value
Trade centers as trading areas experience management limitations because of the prohibition of mass gatherings during the COVID-19 pandemic, resulting in a limited number of onsite trading. Tenants who have entered into a long-term contract experience loss and rely on the aid of property management to survive. The role and quality of service of property management influence tenants’ satisfaction post-COVID-19 pandemic.
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Catherine Brown, Sharon Christensen, Andrea Blake, Karlina Indraswari, Clevo Wilson and Kevin Desouza
Information on the impact of flooding is fundamental to mitigating flood risk in residential property. This paper aims to provide insight into the seller disclosure of flood risk…
Abstract
Purpose
Information on the impact of flooding is fundamental to mitigating flood risk in residential property. This paper aims to provide insight into the seller disclosure of flood risk and buyer behaviour in the absence of mandated seller disclosure.
Design/methodology/approach
This paper adopts a case study approach to critically evaluate the matrix of flood information available for buyers purchasing residential property in Brisbane, Queensland. This paper uses big data analytic techniques to extract and analyse internet data from online seller agents and buyer platforms to gain an understanding of buyer awareness and consideration of flood risk in the residential property market.
Findings
Analysis of property marketing data demonstrates that seller agents voluntarily disclose flood impact only in periods where a flooding event is anticipated and is limited to asserting a property is free of flood risk. Analysis of buyer commentary demonstrates that buyers are either unaware of flood information or are discounting the risk of flood in favour of other property and locational attributes when selecting residential property.
Practical implications
This research suggests that improved and accessible government-provided flood mapping tools are not enhancing buyers’ understanding and awareness of flood risk. Accordingly, it is recommended that mandatory disclosure be introduced in Queensland so that buyers are more able to manage risk and investment decisions before the purchase of residential property.
Originality/value
This paper contributes to existing literature on raising community awareness and understanding of natural disaster risks and makes a further contribution in identifying mandatory disclosure as a mechanism to highlight the risk of flooding and inform residential property purchasers.
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Pauli Autio, Lauri Pulkka and Seppo Junnila
The aim of this paper is to introduce a framework that helps to identify strategic themes on which real estate investors form their strategies. A holistic approach to strategic…
Abstract
Purpose
The aim of this paper is to introduce a framework that helps to identify strategic themes on which real estate investors form their strategies. A holistic approach to strategic management in real estate management has enjoyed popularity in corporate real estate research, while similar research has been lacking from the investor-based real estate management.
Design/methodology/approach
The research design consists of two main parts: 1) formulating propositions based on existing literature and 2) attempting to validate the propositions through a qualitative interview study with major real estate owners in Finland.
Findings
The main finding is that the current real estate investors reflect the transient nature of competitive advantages and assess their strategies accordingly. The companies consider the traditional profitability and revenue growth aspects of their business but also a more long-term future growth dimension. As an outcome, the investors base their strategies on eight strategic themes which are “Innovation”, “ESG”, “Marketing and sales”, “Financial management”, “Leasing management and tenant satisfaction”, “Competitive environment and portfolio management”, “Outsourcing and strategic partnerships” and “Cost and operation optimization”.
Research limitations/implications
This paper opens opportunities for future research concerning different strategies in real estate investment business and their impacts.
Practical implications
The presented framework provides support for real estate investors to create real estate management strategy or to evaluate their current strategy and to recognize operational actions and decisions that are relevant for their strategy.
Originality/value
This paper provides an extension to corporate real estate (CRE) literature by showing that the CRE theories are adaptable to real estate investment and provide value for their strategic management. This paper also contributes to real estate investment literature by providing a well-founded and empirically contested strategic management framework, the IREM framework, for identifying strategic themes on which real estate investors form their strategies.
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Investors often utilize brokers to assist them in property acquisitions. These brokers are compensated through a cooperative commission, or bonus, that is publicized on the…
Abstract
Purpose
Investors often utilize brokers to assist them in property acquisitions. These brokers are compensated through a cooperative commission, or bonus, that is publicized on the listing service. The purpose of this paper is to determine the relationship between advertised compensation packages and selling price, time-on-market and listing characteristics.
Design/methodology/approach
To examine variables likely to influence earnings of the buyers' broker, this study utilizes multiple and logistic regressions. Given the range of prices found in the 196,276 listings, the data was sorted on listing price and then split into ten, approximately equal, deciles.
Findings
The explanatory power of models with cooperative commission as the dependent variable was highest in the lowest deciles with type of financing, size and distressed status being highly significant. When comparing list- to selling price the average was 96.1%. As cooperative commission increased, the higher priced parcels sold at a higher price relative to list price. This potentially justifies higher cooperative commissions or exemplifies the principal-agent problem where effort is based on potential earnings. Fixed bonuses were used predominately for parcels under $62,234, likely to provide a minimum earnings amount. However, surrounding the median, it seems they may differentiate a property.
Practical implications
This research provides insight for practitioners on the impact of different variables, including cooperative commissions, on sale price and time-on-market. For example, cooperative commission increased for properties in the outer deciles implying that agents may be compensating for suspected difficulty. Additionally, the seasonality findings imply that agents can determine when to list and when to provide a fixed bonus to solicit attention. Results also suggest that practitioners will find it beneficial to market at an appropriate price rather than list high to create negotiating room.
Originality/value
This paper follows only one paper that covered a similar topic. However, this paper uses twenty years of multi-unit property listings from a major US city from 1996 to 2015. The focus on multi-unit properties is an effort to focus on a more sophisticated group of buyers that may be more experienced and make decisions more rationally.
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Umar Saba Dangana and Namnso Bassey Udoekanem
The rising concern for the accuracy of residential valuations in Nigeria has created the need for key stakeholders in the residential property markets in the study areas to know…
Abstract
Purpose
The rising concern for the accuracy of residential valuations in Nigeria has created the need for key stakeholders in the residential property markets in the study areas to know the level of accuracy of valuations in order to make rational residential property transactions, amongst other purposes.
Design/methodology/approach
A blend of descriptive and causal designs was adopted for the study. Data were collected via structured questionnaire administered to 179 estate surveying and valuation (ESV) firms in the study areas using census sampling technique. Analytical techniques such as median percentage error (PE), mean and relative importance index (RII) analysis were employed in the analysis of data collected for the study.
Findings
The study found that valuation accuracy is greater in the residential property market in Abuja than in Minna, with inappropriate valuation methodology as the most significant cause of valuation inaccuracy.
Practical implications
The practical implication of this study is that a reliable databank should be established for the property market to provide credible transaction data for valuers to conduct accurate valuations in these cities. Strict enforcement of national and international valuation standards by the regulatory authorities as well as retraining of valuers on appropriate application of valuation approaches and methods are the recommended corrective measures.
Originality/value
No study has comparatively examined the accuracy of valuations in two extremely different residential property markets in the country using actual valuation and transaction prices.
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Shumank Deep, Sushant Vishnoi, Radhika Malhotra, Smriti Mathur, Hrishikesh Yawale, Amit Kumar and Anju Singla
Augmented Reality (AR) and Virtual Reality (VR) technologies possess the potential to transform the scenario of making real estate investment decisions through the immersive…
Abstract
Purpose
Augmented Reality (AR) and Virtual Reality (VR) technologies possess the potential to transform the scenario of making real estate investment decisions through the immersive experience they offer. From the literature it was observed that the research in this domain is still emergent and there is a need to identify the latent variables that influence real estate investment decisions. Therefore, by examining the effects of these technologies on investment decision-making, the purpose of the study is to provide valuable insights into how AR and VR could be applied to enhance customers' property buying experiences and assist in their decision-making process.
Design/methodology/approach
From an extensive review of the literature four latent variables and their measure were identified, and based on these a survey instrument was developed. The survey was distributed online and received 300 responses from the respondents including home buyers, developers, AEC professionals and real estate agents. To validate the latent variables exploratory factor analysis was used whereas to establish their criticality second-order confirmatory factor analysis was used.
Findings
From the results, the four latent constructs were identified based on standard factor loadings (SFL) that is Confident Value Perception (CVP, SFL = 0.70), Innovative Investment Appeal (IIA, SFL = 0.60), Trusted Property Transactions (TPT, SFL = 0.58) and Effortless Property Engagement (EPE, SFL = 0.54), that significantly influence investor decision-making and property purchase experience.
Originality/value
This study contributes to the literature on real estate investment decisions by providing empirical evidence on the role of AR and VR technologies. The identified key variables provided practical guidelines for developers, investors and policymakers in understanding and leveraging the potential of AR and VR technologies in the real estate industry.
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