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1 – 10 of 209
Article
Publication date: 3 November 2022

Alan Richard Pope, Graham Squires and Martin Young

This paper is concerned with behavioural responses to reviewed ground rents in New Zealand. The focus is on how freehold growth information is interpreted when considering…

Abstract

Purpose

This paper is concerned with behavioural responses to reviewed ground rents in New Zealand. The focus is on how freehold growth information is interpreted when considering reviewed ground rents on ground leasehold value.

Design/methodology/approach

Semi-structured interviews were conducted with ground leaseholders to inform the design of a controlled experiment. The interviews revealed that (a) purchasers tended to directly compare freeholds to ground leaseholds and (b) used rudimentary valuation methods. In the experiment, 40 property investors were requested to estimate the ground leasehold value close to the ground rent review time. Thereafter, 20 of the investors reassessed their ground leasehold value estimate using a projection of the future ground rent and a statement as to freehold growth (treatment). The control group of the remaining 20 investors received the estimate of the future ground rent only.

Findings

The tendency for higher treatment group valuations indicated the growth information was too available. Comparing ground leaseholds directly to freeholds, rather than thinking about the cost implications, is attributed to a manifestation of the availability heuristic.

Research limitations/implications

The study involves a typical ground lease arrangement (as verified by experts) in the New Zealand market where there are few protections for ground leaseholders. These findings justify prohibiting new ground leases where the ground rents are set by reference to freehold land value.

Originality/value

This paper extends behavioural theory (availability heuristic) to explaining human interaction with ground leaseholds.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Content available
Article
Publication date: 23 January 2020

Graham Squires and David White

Abstract

Details

Journal of Property Investment & Finance, vol. 38 no. 1
Type: Research Article
ISSN: 1463-578X

Article
Publication date: 10 June 2021

Graham Squires, Don Webber, Hai Hong Trinh and Arshad Javed

The purpose of this paper is to examine the relationship between house price affordability (HPA) and rental price affordability (RPA) in New Zealand. The cointegration of…

Abstract

Purpose

The purpose of this paper is to examine the relationship between house price affordability (HPA) and rental price affordability (RPA) in New Zealand. The cointegration of HPA and RPA is of particular focus given rising house prices and rising rents.

Design/methodology/approach

The study examines the lead-lad correlation between HPA and RPA. The method uses a generalised least square technique and the development of an ordinary least squares model.

Findings

The study shows that there is an existence of cointegration and unidirectional statistical causality effects between HPA and RPA across 11 regions in New Zealand. Furthermore, Auckland, Wellington and Canterbury are the three regions in which the results detect the most extreme effects amongst HPA and RPA compared to other places in the country. Extended empirical work shows interesting results that there are lead-lag effects of HPA and RPA on each other and on mortgage rates at the national scale. These effects are consistent for both methods but are changed at individual lead-lag variables and amongst different regions.

Originality/value

The study empirically provides useful insight for both academia and practitioners. Particularly in examining the long-run effects, cointegration and forecasting of the volatile interactions between HPA and RPA.

Details

International Journal of Housing Markets and Analysis, vol. 15 no. 3
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 27 December 2021

Braam Lowies, Graham Squires, Peter Rossini and Stanley McGreal

The purpose of this paper is to first explore whether Australia and the main metropolitan areas demonstrate significant differences in tenure and property type between…

Abstract

Purpose

The purpose of this paper is to first explore whether Australia and the main metropolitan areas demonstrate significant differences in tenure and property type between generational groups. Second, whether the millennial generation is more likely to rent rather than own. Third, if such variation in tenure and property type by millennials is one of individual choice and lifestyle or the impact of housing market inefficiencies.

Design/methodology/approach

This paper employs a comparative research approach using secondary data from the Australian Bureau of Statistics (ABS) to consider housing tenure and type distributions across generations as well as through cross-city analysis.

Findings

The results show that home ownership is still the dominant tenure in Australia, but private rental is of increasing significance, becoming the tenure of choice for Millennials. Owner occupation is shown to remain and high and stable levels for older generations and while lower in percentage terms for Generation X; this generation exhibits the highest growth rate for ownership. Significant differences are shown in tenure patterns across Australia.

Originality/value

The significance of this paper is the focus on the analysis of generational differences in housing tenure and type, initially for Australia and subsequently by major metropolitan areas over three inter-census periods (2006, 2011 and 2016). It enhances the understanding of how policies favouring ageing in place can contradict other policies on housing affordability with specific impact on Millennials as different generations are respectively unequally locked-out and locked-in to housing wealth.

Details

Property Management, vol. 40 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 22 December 2021

Graham Squires

This article is looking to reflect on the various important touchstones of “grand theory” and “big thinkers” that can be framed when engaging empirical evidence in…

Abstract

Purpose

This article is looking to reflect on the various important touchstones of “grand theory” and “big thinkers” that can be framed when engaging empirical evidence in property economics research.

Design/methodology/approach

The paper is reflexive in nature, using experiential reflection to consider theory in property economics. The importance of “methodology” is emphasised rather than “method”.

Findings

Using reflexive mode, the paper does not have “findings” as such: if the views expressed are accepted, then a research agenda to better understand property economics research is implied.

Research limitations/implications

The nature of reflection is that it follows from the writer's experiential processes and interpretations. The reader may come from a different stance. Broadly accepting the propositions, there is a call for property economics research to be formulated in reason and logic, particularly as humans do not reason from facts alone. Such reasoned thinking could for example be in the property economic concepts of space and place, contracts and justice, capital and financialisation.

Practical implications

To engage with such theory would provide some depth of philosophical roots for property as a discipline. Elevating property as a “real-world” discipline rather than simply an applied mathematics discipline.

Social implications

The paper enables an understanding of how property economics research can benefit from more ontology and more inductive reasoning.

Originality/value

The paper reflects the views and experience of the author based on over 15 years of research in property economics.

Details

Journal of Property Investment & Finance, vol. 40 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 16 August 2018

Nicolle Montgomery, Graham Squires and Iqbal Syed

The purpose of this paper is to review the literature on the Disruptive Innovation Theory and on the disruptive potential of real estate crowdfunding (RECF) in the real…

3297

Abstract

Purpose

The purpose of this paper is to review the literature on the Disruptive Innovation Theory and on the disruptive potential of real estate crowdfunding (RECF) in the real estate finance industry, assessing whether RECF constitutes a potentially disruptive innovation to the real estate finance industry. Based on a review and synthesis of the literature, the paper advances an initial conceptual framework of core characteristics of disruptive innovations. This framework is used to examine the disruptive potential of RECF in the real estate finance industry.

Design/methodology/approach

This paper is a systematic literature review that synthesizes and analyzes relevant extant research articles retrieved from online databases.

Findings

Findings suggest that according to the theory of disruptive innovations, and the core characteristics of disruptive innovations, RECF is a potentially disruptive innovation to the real estate finance industry. RECF seems to generally align with the classic characteristics of disruptive innovations. A more comprehensive and systematic analysis, supported by empirical data, is necessary to evaluate whether and to what extent RECF constitutes a disruptive innovation to the real estate finance industry.

Research limitations/implications

This study has only captured and reviewed articles published and available in database searches. RECF is a nascent field that has recently begun receiving academic attention.

Practical implications

Real estate plays an integral part in the economy, and the way it is financed has become an increasingly important issue following the Global Financial Crisis. This paper provides useful insights for assessing whether and to what extent RECF may be disruptive to the real estate finance industry.

Social implications

RECF may potentially improve accessibility and affordability of real estate finance, thereby helping to address the problem of shortage of real estate project finance.

Originality/value

While RECF is portrayed in the academic and gray literature as a disruptive innovation, its disruptive potential is yet to be determined. This paper advances an initial conceptual framework of defining characteristics of disruptive innovations. This framework is used to evaluate RECF as a potentially disruptive innovation in the real estate project finance industry. This study forms a basis for future empirical examination of the disruptive potential of RECF in the real estate finance industry.

Article
Publication date: 4 April 2016

Graham Squires, Norman Hutchison, Alastair Adair, Jim Berry, Stanley McGreal and Samantha Organ

– This research aims to provide an insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.

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Abstract

Purpose

This research aims to provide an insight into large-scale real estate projects in Europe and how they are using a more innovative blend of finance.

Design/methodology/approach

The methodology involved a mix of desk-based study, interviews and case studies. Interviews were held with financiers, policymakers, developers, investors, fund managers and academics. The specific case projects were Battersea Power Station Development in London; Leipziger Platz site in Berlin; and the Lammenschans site in the city of Leiden, The Netherlands.

Findings

The research found that there is growth in the blend of financial products used in real estate development within large-scale mixed-use projects. This new blend is set with greater equity financing, often from domestic and foreign consortiums generating institutional funds – alongside private debt financing – that utilise a mix of large-scale multi-bank finance.

Practical implications

The scale of the challenge in financing real estate development allied with capital budget constraints has meant that the appetite for innovative finance mechanisms has gained considerable momentum in practice and policy. This research investigates current examples in development finance and provides a discussion of the opinion of key multi-stakeholder participants in the individual cases, and trends more strategically at a broader level.

Originality/value

This detailed study of three major development sites and at a more broader strategic level is significant, in that it provides a better understanding of the differing blends of finance that are being used.

Details

Journal of Financial Management of Property and Construction, vol. 21 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 8 July 2014

Justin Birch and Graham Squires

The purpose of this paper is to consider heritage for buildings within Enterprise Zones – a programme promoted by central government to improve the UK economy. A central…

516

Abstract

Purpose

The purpose of this paper is to consider heritage for buildings within Enterprise Zones – a programme promoted by central government to improve the UK economy. A central view has been focusing on economic growth, with little thought given to the wider implications of heritage when imposing these zones of deregulation.

Design/methodology/approach

An illustrative case study of Bristol Temple Quarter Enterprise Zone is used that includes primary interviews with key stakeholders involved in the zone. This is synthesised with secondary literature review allowing an investigation of the way in which heritage issues are being dealt with and the resulting implications for both Bristol and in other zones in the UK.

Findings

Conflicts are demonstrated between the objectives of the Enterprise Zone scheme and those of heritage protection, indicating that they are not natural partners. It is argued that existing statutory protection is not necessarily enough to safeguard the heritage of these areas, given that the balance of power is now tipped in favour of economic growth.

Originality/value

If lessons can be learnt from this study then potential heritage issues from similar zoned developments can be avoided. The study encourages positive engagement with heritage by central government. Furthermore, it presents the first academic study that considers heritage within the latest tranche of spatially targeted fiscal incentive programmes.

Details

Structural Survey, vol. 32 no. 3
Type: Research Article
ISSN: 0263-080X

Keywords

Article
Publication date: 14 October 2014

Graham Squires and Norman Hutchison

The purpose of this paper is to draw out interesting nuances and lessons when using a Tax Increment Financing (TIF) model in San Francisco given the abandonment of…

692

Abstract

Purpose

The purpose of this paper is to draw out interesting nuances and lessons when using a Tax Increment Financing (TIF) model in San Francisco given the abandonment of California's redevelopment agencies (RDAs) created via TIF funds.

Design/methodology/approach

This research is based on secondary literature review, desk-based study and primary interviews with professional interviewees that have been heavily involved in TIF projects in San Francisco over the last decade.

Findings

The abolition of the RDAs in California may be inadvertently cutting-off the principal supply of funds for redevelopment that includes much needed affordable housing.

Originality/value

Reflective lesson learning for the management of land and property development in the USA and UK. Particularly with respect to funding mechanisms and agencies that can implement and develop affordable housing.

Details

Property Management, vol. 32 no. 5
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 16 February 2015

Andrew Ellison, Graham Squires and Patrick Dempsey

There are some 487,000 places in long-stay residential care and nursing homes in the UK representing an industry worth some £15.2 billion per annum. Creating leases with…

Abstract

Purpose

There are some 487,000 places in long-stay residential care and nursing homes in the UK representing an industry worth some £15.2 billion per annum. Creating leases with guaranteed rental uplifts, a property bond in all but name, now attracts significant investment into healthcare. This is argued to be unsustainable, as evidenced by the collapse of Southern Cross Healthcare. The purpose of this paper is to provide insight into institutional investment for sustainable healthcare provision.

Design/methodology/approach

It is carried out via a range of unstructured and semi-structured interviews with a purposive sample of a small elite of professionals involved at the summit of this investment market and analysis of secondary literature concerning the wider international property market regarding the way in which advisers and investors view the security and value of these new instruments.

Findings

It is found that the differentiation between rental growth and indexed rental uplifts reveal a misunderstanding of the nature of the investment vehicles currently being marketed.

Practical implications

The implication of the research, is that much modern private healthcare provision is financially unsustainable, as has begun to be recognised in recent government regulation and guidance.

Originality/value

This research provides new and original insight into institutional investment for sustainable healthcare provision

Details

Property Management, vol. 33 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

1 – 10 of 209