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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.

This paper aims to identify the imbedded option value in price of auctioned land in Hong Kong, and to propose a more accurate valuation method in predicting land price.

Based on records of land auctions and property transactions during two periods of very different market conditions, land prices are estimated using the traditional hedonic pricing method as well as the option model modified from Quigg. The results are compared to deduce whether there is any imbedded option value, thus concluding whether the option model facilitates a more accurate valuation of land prices.

This study concludes that land auction prices have embedded option value in waiting to develop land. Option premiums increase with implied volatilities, which go up during market downturns, suggesting that developers place higher value on the option to develop during recessions.

The accuracy of the analysis may have been compromised by the limited number of land auctions conducted and the difficulties in inferring the value of multi‐ownership residential buildings from sample transactions of their constituent individual units. Future research will benefit from a larger sample of transactions.

This paper illustrates that real option models provide the property industry with a valuation tool that addresses the concern arising from the irreversibility of investment decisions.

The study finds out the option premiums of vacant land in Hong Kong, lending empirical support to the application of option‐based models for more accurate land valuation under different market conditions.

A significant number of published empirical studies of real estate auctions abound in real estate literature. These studies focus on the auction price formation process through the comparison of sales from different auctions to revenue from private negotiations. While these studies have made useful contributions to the literature, they are largely confined to data emanating from auctions in the UK format. Other auction formats have been virtually ignored; thus creating a gap in the literature. This study, therefore seeks to extend research in the auction price formation process through an empirical analysis of transaction prices from the perspective of another auction format: first sealed bid auction.

The data for this study consist of a sample size of 120 residential properties sold at auction of the Federal Government Landed Properties (FGLP) in Ikoyi, Lagos, Nigeria. Transaction data for each of the sampled properties were compiled from Vol. 11, No. 3834 of Thisday newspaper. These include open market values (reserve prices), bid prices, numbers of bids, property specific and bidders' attributes. These were then analysed using descriptive, paired t‐test statistic and regression model.

The empirical evidence suggests that auction properties sell at an 11.33 per cent premium relative to predicted market values. Also provided, through the regression model, are variables having a significant impact on the auction prices.

The paper provides empirical evidence of the auction price formation process in first sealed bid auction where published empirical studies are still relatively few. Overall, the results of the analysis presented suggest that auctions offer an optimal method of selling property.

The purpose of this paper is to construct option pricing models for real estate development by considering and incorporating institutional arrangements, direct interactions and financial constraints in the model. It extends the application of real option theory from the framework borrowed from financial option pricing, and considers the case where a development company has restrictions from outside environment and financial constraint. It explores the effects of these additional practical factors on real asset project value and development timing. This paper makes contributions to bridge the theoretical models and practical applications.

Real estate development is modelled in the binomial option pricing framework with the considerations of time‐to‐build, foregone rent if delaying, institutional environment and capital budgeting. The investment timings are derived from the models and sensitivity analysis is conducted to explore the effects of these factors.

Apart from the factors in traditional option pricing theory, this paper confirms that the contractual covenants, positive synergies between properties and financial status of the firm, which enhance or restrict real flexibility embedded in the development land, influence project value and investment timing. Numerical examples illustrate the effects of these factors. It is argued that the valuation of real options should place emphasis on industry‐specific characteristics and start from the perspective of the firm rather than individual options.

The models constructed in this paper and the results can be directly used in the practical real estate development.

This paper incorporates many practical factors in real estate development which are not investigated in previous studies. It values the option project from the firm perspective rather than project perspective as previous studies. It also shows the effects of institutional arrangement and firm factors on project value and development timing.

This paper aims to explore the sources of China's property boom from 2000 to 2009. The basic research hypothesis is that the property boom is largely associated with Chinese local governments’ incentive structure which prioritizes GDP growth for evaluating their performance.

Based on the fixed effects panel data regression model of 35 major Chinese cities, the determinants of property investment, property price and land sale price are identified. In particular, the roles of local governments in boosting the property boom are discussed.

Property investment is driven by accelerating urbanization process, easier availability of bank loans and more housing sales. Meanwhile, higher disposable income, more housing sales and increasing property investment are identified to mainly account for the property price escalation. It is further demonstrated that increasing property price has positive effect on land sale price. Local governments have quickened the urbanization process, released more bank loans and sold more land through public auction to support property development, sustain property price and increase land sale revenue. Such behaviour is closely related to Chinese local governments’ incentive structure.

Previous studies have not empirically tested the relationships between local governments’ pursuits for higher revenue in the urban land market and China's magnified and sustained property boom over the past decade. A prosperous property market is conducive to economic development and hence local officials’ chances of political promotion.

Examines the resolution of rights to former expropriated owners of land and buildings in Hungary. Looks at social and economic implications of the choice between compen‐sation and restitution. Analyses the initial results of the Compensation Acts 1991‐92. Indicates that the social goals may now have been achieved but the land market remains largely dysfunctional. Analyses the results of the first Government auctions. Suggests that the resultant price structure is unreliable. Outlines what has been achieved in the transformation process. Concludes that the future is still uncertain and dependent on public policy and general economic conditions.

The aim of this research is to investigate the effects of land supply (LS) and lease conditions on the housing market. It tests whether there exists a relationship: between LS and housing price, between development conditions in government land leases and housing supply, and to what extent these development conditions affect Hong Kong's supply, of private residential flats. This paper focuses on examining the supply side of private housing in Hong Kong, whilst limiting the investigation on how LS and development conditions affect the supply of the private residential property market. The findings of this study bring additional knowledge on a different form of government control over the land market. First, an overview of Hong Kong's housing supply situation is presented. An understanding of Hong Kong's housing situation generates an underlying rationale for this study. In order to understand Hong Kong's land tenure system, Section 2 provides a brief background of the establishment of Hong Kong's leasehold tenure system. Section 3 develops the research framework within which to provide a global synopsis of literature (relating to the effects of leasehold land tenure system, governmental land regulation, development/land use control, and restricted LS on the housing market) and theoretical models for the analysis of LS and lease conditions. Following the analysis of findings, the concluding section presents recommendations for policy change.

Hong Kong and Singapore are characterized by rapid economic development and a high population density of 6,250 and 6,055 per km² land respectively. Land revenue is their major source of income to finance their public infrastructure and social services. Their design and collection of taxes on land, their value‐capture instruments and their allocation of revenue for public works are examined. The article finds that there are some similarities between the two cities in capturing land value, such as the collection of annual rates and stamp duty on property. The differences include the adoption of property tax surcharge and the development charge. In fact, each mechanism has its pros and cons. The method and the extent of each mechanism depend on the goals of the government in respect of the social and economic conditions.

This paper aims to empirically test the effect of list price and bidding strategies in ascending auctions of residential real estate.

Three regression models are estimated, using a unique data set from 629 condominium apartments in the inner-city of Stockholm, Sweden, sold between January 2010 and December 2011.

The results show that jump bidding has the predicted effect of reducing competition by scaring off bidders. However, a higher average bid increment leads to a higher selling price. Furthermore, results show that a fast auction in terms of average time between bids acts to increase the probability of so-called auction fever as both the number of bidders and the selling price are positively correlated with the speed of the auction. While the average behavior of all auction participants, in terms of jump bidding and time between bids, significantly affects auction outcomes, differences in strategies applied by winners and losers show mixed results. The results of this study with respect to sellers’ list price strategy show that underpricing is an ineffective strategy in terms of enticing more bidders to participate in the auction. Furthermore, underpricing is not sufficient to have a positive effect on the selling price.

This paper is one of the first papers to empirically analyze how different bidding strategies affect the outcome of residential real estate auctions in terms of competition and the final selling price.

Leadership.

This case study is useful for graduate and post-graduate students.

Kulim Land Office is the department responsible for the management of the affairs of the land in this area and it focuses on harmony, progress and prosperity management so that they are conducted in an orderly manner, and in accordance with the requirements of regulations and existing laws. Kulim Land Office is a public organization which is managed by the Land Administrator and two assistants of the Land Administrator. There are about 60 staff and they are being led by the Land Administrator Tuan Haji Md. Shuhaimie b. Abd Rahman, AMK, BCK, ASK. Since the Tuan Haji Md. Shuhaimie leadership started in August 2009, the units had experienced many successful achievements and, not surprisingly, have become a benchmark for other departments in the state of Kedah and the whole Malaysia public departments. This case study explains the importance of different leadership style at workplace and ways to avoid criticism. This case study also explains different methods to motivate subordinates to develop effective leader-follower relationship.

This case study will help students understand leadership style and ways to avoid criticism.

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