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Hong Kong is one of the most dynamic property markets in the world, and now provides the economic gateway to China. Using style analysis, the level of direct property in Hong Kong property company performance is shown to be approximately 15 per cent over 1984‐2000, with the level of direct property increasing to approximately 25 per cent in recent years. The level of direct property in Hong Kong property company performance is significantly below that seen for the USA, Europe and Australia. This highlights a number of key strategic property investment issues over 1984‐2000, relating to the level of direct property in Hong Kong property company performance. Also assesses the level of direct property at the individual property company level, as well as the property company sector level, further emphasising the strategic role of Hong Kong property companies in an investment portfolio. This research complements the previous research by Brown and Chau on excess returns in the Hong Kong property market, as well as highlighting the issues and role of both direct and indirect property for inclusion in diversified investment portfolios; these being key areas of Gerald Brown's extensive property research agenda.

The paper's objective is to empirically study the effects of building refurbishment on the prices of the dwelling units in a contiguous housing estate in Hong Kong.

In a congested living environment like Hong Kong, it is difficult, if not impossible, to have a view unobstructed by buildings. As such, the quality of views is dependent on the aesthetic quality of surrounding buildings. It is likely that poorly maintained buildings will impose negative visual effects on their immediate surroundings. Refurbishing these poor buildings should, therefore, reduce or even counter this negative externality. To study the positive externality brought about by building refurbishment, a hedonic price analysis was conducted on a set of panel data consisting of property transactions in a large housing estate located in Pokfulam. This estate was chosen because its adjoining buildings underwent refurbishment in 1998.

The results showed that the refurbishment increased significantly the prices of those properties which faced refurbished buildings, keeping other things constant. The increments, on average, amounted 6.6 per cent of the prices of the properties.

Building refurbishment can have various scopes and scales but this study did not consider how the characteristics of the building refurbishment affected the prices of neighbourhood properties.

Given the problems of aging buildings in most urban areas, the results presented significant practical implications for building refurbishment and urban renewal as a whole. Developers or property owners may be lured to invest in the refurbishment of adjacent dilapidated properties with a view to enhancing the values of their own properties.

Although previous studies analytically suggested that building refurbishment created positive externality, this study is the first attempt to explore this connection.

The process of managing the design and construction of a project on behalf of a client may be analysed using project management theory based on a contingency approach. The analysis provided by this approach, whilst useful for understanding the interaction of the parts of the system, the functions of project management and the effectiveness of the organization structure, may be limited by not incorporating an economic explanation of how a project organization structure is chosen. The transaction cost approach to the study of economic organization may provide a theoretical basis for such an explanation. This approach holds that an understanding of transaction cost economizing is central to the study of organizations as it determines whether functions are provided by the market or by hierarchy. This paper seeks to explore the relationship between these two powerful approaches in explaining the structuring and management of project organizations on behalf of clients and to explain the benefits of combining these approaches in furthering construction project management theory.

For the sake of public health and safety, a territory‐wide evaluation of the quality of buildings in Hong Kong is crucial. However, it is a lengthy process to assess the performance of the whole stock of buildings in the city. To get around this predicament, this paper aims to propose a statistical approach for a fast and reliable building evaluation algorithm using the Building Quality Index (BQI) developed by The University of Hong Kong.

Using the BQI assessment framework, the condition of 133 and 160 private apartment buildings in Yau Tsim Mong and the Eastern District respectively are assessed and rated. The data of the Yau Tsim Mong buildings are used to estimate a regression model associating the relationships between building performance, measured by the BQI, and other exogenous factors. The resulting model is then employed to predict the performance of the surveyed buildings in the Eastern District.

The regression analyses on the Yau Tsim Mong data indicate that building age, development scale and building management mode are significant determinants of the existing condition of the sampled buildings, echoing the findings of previous studies. BQI scores of buildings in the Eastern District are estimated using the resulting regression model, and there is a highly positive relationship between the predicted BQI and in‐situ BQI scores.

The study is the first in the literature to provide an algorithm for estimating building condition in a densely developed high‐rise urban area.

The purpose of this paper is to investigate the response of transaction volume in Hong Kong’s housing market to public land auctions.

An event study approach with the use of regression analyses was adopted for the empirical study.

Fewer pre-event transactions in the secondary housing spot market come with greater dispersion in the pre-event forecasts of land auction outcomes. Unexpected auction outcomes were also found to minify the post-event transaction volume in the secondary housing spot market, with negative unexpected outcomes exerting a stronger downward force.

These findings are contrary to the empirical evidence commonly found in most financial literature on stock transaction volume around corporate earnings announcements with an assumption of negligible transaction costs. Imperfect market structure, differences in sellers’ and buyers’ characteristics and short-sale restriction may explain the disparity.

Price in the secondary housing market is more sensitive to negative unexpected land auction outcomes. The analysis results of the current study attest that the impact exerted by the negative unexpected auction outcomes on transaction volume in the housing spot market is stronger than that of positive unexpected auction outcomes.

Unlike price and return, transaction volume has not received substantial academic attention in property research. In particular, within the existing small body of transaction volume research, the impact of information events on trading activities has been largely ignored.

There has been a growing public concern over the importance of building management in apartment buildings. However, people's views toward the effects of building management on building performance have long been divergent due to a lack of empirical study. This study aims to empirically test the relationship between building management regimes and the conditions of private apartment buildings in Hong Kong.

An assessment scheme was developed to assess the health and safety conditions of 134 apartment buildings. Multiple regression models were then applied to analyze the effect of building management regimes on building conditions. The optimal functional form of the regression models was selected using Box‐Cox transformation.

The empirical results suggested that the presence of incorporated owners and property management agents (PMA) are significant factors in enhancing building conditions.

The sample was confined to single block buildings located in one particular district in Hong Kong. Further research is needed to validate the findings in estate‐type developments as well as those in other districts.

The empirical results assisted building owners in determining which management regimes to adopt should they want better building conditions. The government may also consider giving more support to owners by incorporating them and employing PMAs to create a pleasant living environment for society.

Our study is the first in the literature to provide an empirical test reconciling the divergent views toward the effects of building management with the conditions of buildings.

The purpose of this paper is to discuss a Coasian interpretation of a model of sustainable development for Hong Kong that incorporates three segments, namely economy, society, and environment.

The approach is analytical, using concepts of property rights informed by Coasian neo‐institutional economics and Yu's ideas on the Schumpeterian process in innovation.

First, the sustainable development criteria must be non‐dictatorial, decentralized, and compatible with market economics. The emphasis is contractarian rather than legislative or administrative. Second, the essence of segment cooperation is to create a win‐win situation rather than an “integrated” rent seeking game, which will likely result in more values being created. Third, the requirement that it be progressive over time implies that programs and policies that are duplicative need to be avoided, and innovations are to be encouraged. Fourth, the requirement of satisfying only two aspects of the three segments of cooperation implies a less stringent standard of making stepwise improvements, and thus makes entrepreneurial efforts more likely. Last, the three segments of cooperation, if practiced simultaneously and improved over time, can achieve most, if not all, the principles in the Rio Declaration without aiming at a specific principle in the Declaration.

This paper should focus on a “win‐win” rather than a mutually exploitative approach to public participation in sustainable development promotion.

This paper should assist policymakers and politicians in understanding how sustainable development may be conceptually modelled.

The paper is the first paper that defines for Hong Kong a model of sustainable development on the basis of Coasian economics, and contrasts it with other proposed models.

Assesses the relationship between Hong Kong property company and commercial property market performance over 1984‐94. Finds that property companies provide a useful source of transaction‐based information about changing property market fundamentals. The unique property market characteristics in Hong Kong mean that information is impounded into direct property series quickly, within one quarter of being impounded into indirect property company stock prices. Finds a common “pure” property element that influences both property company and property market returns. This results in investors capturing some portion of Hong Kong property market returns by investing in property companies, as well as achieving liquidity and portfolio diversification.

The leading real estate journals in the USA, UK, Asia and Australia are analysed over 1991‐2000 to assess the impact of international real estate research in these journals. It is found that the focus on international real estate has expanded considerably in recent years, with this focus more evident in the leading UK real estate journals rather than the leading USA real estate journals. Reasons for this difference between the USA and UK real estate journals are identified. Issues relating to international authorship are assessed, with the leading international authors and universities identified.

In Hong Kong, a balcony is often perceived as a “green” provision in modern residential buildings. However, how the market values the benefits of balconies is seldom studied due to the difficulty in separating such benefits from other associated effects such as view enjoyment and security concerns. This paper attempts to study the implicit value of a balcony, the green effects of balconies on the prices of residential properties, and the effect of security concerns on balconies situated on lower floors. A sample of transactions in a private housing estate in Hong Kong has been studied. The sample contains apartments with and without balconies. A balcony is found to have a positive effect on the value of a property irrespective of the quality of the view. The negative effects of air and noise pollution on property prices are also found to be highly significant. Although security concerns are found on the low stories of a building, the provision of a balcony does not aggravate the hazard. Finally, the log‐linearity assumption in the empirical price model is relaxed by applying the Box‐Cox transformation to the continuous variables.