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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.

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.

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.

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.

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

This paper considers the valuation in 1982 of the freehold interest in an industrial estate. The freeholder has granted a ground lease to a developer who has over a period of years constructed and let a number of factory and warehouse units. The ground rent is geared to a percentage of the rack rents on review every seven years. The majority of the occupation leases of the units on the estate are on a five‐yearly rent review basis with one unit on a three yearly rent review basis.

This paper aims to compare and review alternative ways to adjust public ground leases.

Based on principles derived from a review of scientific literature, alternatives for the extension of leases are discussed based on the case of Amsterdam.

Many alternatives lead public ground-lease systems to produce results that are the opposite of what they are intended to be (as inspired by Henry George): new improvements result in higher rent, but additional location values do not result in higher rent. One exception is the lease-adjustment-at-property-transaction alternative, which may nevertheless result in fewer transactions.

Public leasehold systems are highly contested with regard to the extension of leases. Such systems are often aimed at capturing land-value gains. In practice, however, this tends to be more difficult than expected. Value capture by authorities, as intended by the system, results in counter-movements of lessees, who often gain public support to set lower leases. These political processes may even result in the termination of such public ground-lease systems. This paper reports on a search for possible solutions.

The comparison of various alternatives to ground-lease extension based on principles derived from literature is new, and it contributes insight into public ground-lease systems.

Although several factors influence property value determination depending on the market, relevant studies in sub-Saharan Africa (SSA) often fail to analyse the impact of factors, such as unexpired term of leasehold interest and ground rent, which are also germane to market transactions and value determination. This study aims to examine the effect of unexpired term of leasehold interests and ground rent on the valuation of residential properties in Ghana.

A questionnaire instrument was used to collect the views of a sample of professional real estate valuers on the relevance of these and other factors that affect value. In addition, the valuers were tasked to value a residential property located in Accra, Ghana. Ordinary least squares and quantile regression models were thereafter used to analyse the data to determine the effect of the subject variables on value.

The study finds a significant relationship between valuers’ views on the relevance of unexpired term of leasehold interest and the value placed on residential properties. Further, the respondents who viewed ground rent as an important factor in estimating values placed significantly lower values than those who viewed it as less important.

The findings suggest that the respondents may have split opinion on the existing anecdotal evidence that market participants ignore the unexpired term of leasehold interest, an issue that should be settled in theory. The findings also highlight the diversity of opinion on some of the fundamental factors that affect value and the need to build consensus to prevent excessive variation in value estimates among valuers.

The study makes a significant contribution in terms of extending the existing literature by analysing the impact of unexpired term of leasehold interests and ground rent on residential property values based on empirical data, issue(s) which have often been ignored by existing studies. Findings from the study also provide insights into additional possible causes of valuation errors in Ghana and SSA, which are useful for policy formulation and practice.

This paper attempts to analyze the mechanism of land rent distribution under the Soviet and post‐Soviet conditions. The subject is examined from a purely theoretical point of view. The procedure is as follows: first, the socioeconomic meaning of the word “Soviet” is defined. Second, the difference between land rent production and land rent distribution is examined. Finally, Soviet land rent distribution is investigated. Also, changes which the collapse of the Soviet system brought to the process of land rent distribution during the post‐Soviet period are examined. Within this framework, the role of Soviet turnover taxes versus post‐Soviet value‐added taxes is discussed.

The purpose of this paper is to investigate the factors that affect the retail rent of shopping centres in Wuhan, an important city in central China.

The study uses a data set of 68 shopping centres in urban Wuhan. A regression model is constructed to estimate the impact on retail rent of a composite range of variables that would capture the physical characteristics, spatial characteristics, potential attractiveness of shopping centres and market condition.

The empirical findings suggest the ceiling height, closeness to metro line station, being situated in commercial central area, vacancy rate and income have significant impact on rental level. Unexpected, the retail mix has a significant negative impact on rent. The impact of the more determining factors found in Western research – size, age, parking space and anchor tenant – is not supported in the Wuhan study.

While 68 shopping centres are included in the test, the sample size is relatively small. The comparatively short history of retail market in Wuhan would not allow to test the rent adjustment process.

This is the first paper to investigate retail rent determinants in a second-tier city in China. The results of the study give designers, developers and investors critical insights into the determinants of retail rent in an emerging market.

Advances an alternative method of analysing the market price of leasehold investments for use when assessing the market price of a comparable investment. The method can be adapted to evaluate investment worth by substituting rental growth forecasts for those implied by market price levels. Baum and Crosby highlighted the inadequacy of current dual rate valuation methods for leasehold investments and the problems associated with the contemporary approach. Their work is used as the basis for this article. A discounted cash flow (DCF) approach is developed using an analysis of target returns. The all risks yield (ARY) and target return are first assessed on the basis that the investment is freehold but otherwise identical. The implied annual growth rate in CRV is then calculated using the equated yield formula. It is then argued, that because this growth in CRV arises from the location and quality of the building, it is equally applicable to a leasehold interest in that building. This leaves only the target return for the leasehold interest to be established, for a DCF valuation to be possible. Market transactions in leasehold properties are analysed in terms of target return to illustrate how statistical evidence of market sentiment can be accumulated. This evidence is based on the “extra return” required for leasehold investments over comparable freeholds. It will be shown that this “extra return” requirement is not materially affected by the freehold target return initially selected in order to carry out the analysis. The method accordingly appears reliable.

The purpose of this paper is to define the Internet as a virtual space supported by technologies and presented in the form of socioeconomic relations from the perspective of political economy. The Internet space is a unique virtual commodity different from ordinary commodities and has the following effect characteristics: super replicability, space- and time-transcendence, open-source shareability and reality–virtuality transformation.

Internet space can also be imagined as a piece of virtual land. Internet space can be deemed as a piece of virtual land and its value can be divided into labor value and virtual value. The pricing model of virtual value is mainly determined by the gain and discount rate and this value comes from the transfer and markup of social value. In the context of the Internet Plus era, Internet space has become an essential economic factor that influences human economic activities.

Therefore, it is of practical significance and theoretical value to introduce Internet space as an economic variable into the framework of economic theory. The realistic logic of Internet space is to influence human economic behaviors with the combination of information binding.

The theoretical mechanism is to have an impact on the micro-market price by changing market relations from two-dimensional to three-dimensional. Its path to functioning at the macro level is to influence economic behaviors by changing the expectations of investment and consumption, resulting in new economic trends.

Henry George was acclaimed by the general public and disdained by the professional economists, largely for the same reasons. For the general public, progress, and poverty seemed to go to the heart of the matter, treating economics as a question of justice. But for the professionals, George was often regarded as a dangerous radical, even though he reasoned within the tradition of Smith, Ricardo, and Mill. However, he conducted his studies at the precise moment of the marginalist revolution, just as the profession was undergoing a transition from political economy to economics. For the former, economic science was embedded in particular political and cultural systems, while the latter aspired to be a pure science with its own mathematics. While some of the marginalists, such as Walras and Marshall, could maintain a commitment to justice, many others found the whole question superfluous. The purpose of this paper is to argue, however, that without some notion of justice, and especially justice in property relations, a complete description of an economy is impossible.

The paper examines three issues: the relation between distributive and corrective justice, the relation between normative and positive science, and the relation between equity and equilibrium.

The paper finds that, without some notion of equity, equilibrium is unattainable. And this relation can be shown to be present in the very starting conditions of neoclassical formulations, which initial conditions are, alas, too often forgotten.

The paper provides an intriguing view of the neoclassicists' different stance in regard to justice, pointing out that William Stanley Jevons, for example, explicitly states that “feelings” of justice are “more or less extraneous to a theory of economics,” and expands upon this argument.

During the last three decades, thanks to the efforts of J. Schumpeter, G. Stigler, M. Blaug, P. Schwartz, T.W. Hutchison and others, a revaluation of the contribution of John Stuart Mill to the history of economic doctrines in general and to that of economic analysis in particular has taken place on a quite significant scale. The basic portrayal of J.S. Mill as an unoriginal and incoherent writer which prevailed from about the time of his death till around the middle of the present century came to be seriously and, one may say, successfully challenged. While the “eclecticism” of Mill was traditionally emphasised with a pejorative tone, no less than M. Blaug concluded that in the final analysis, it “worked to Mill's advantage” and that “the multiplicity of analytical ideas, often running in opposite directions, opened the way to subsequent refinement and development” (Blaug, 1968, p. 220). The theoretical inventiveness of J.S. Mill was stressed in still louder terms by G. Stigler when he wrote that “he was one of the most original economists in the history of the science” (Stigler, 1955, p. 7).