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Article
Publication date: 29 October 2019

Mohammad Muzzammil Zekri and Muhammad Najib Razali

This paper aims to examine the dynamic of volatility of Malaysian listed property companies within pan-Asian public property markets based on different volatility…

Abstract

Purpose

This paper aims to examine the dynamic of volatility of Malaysian listed property companies within pan-Asian public property markets based on different volatility perspective over the past 18 years, especially during the global financial crisis (GFC).

Design/methodology/approach

This study uses several statistical methods and formulas for analysing the dynamic of volatility of Malaysian listed property companies such as exponential generalised autoregressive conditional heteroscedasticity (EGARCH) and Markov-switching (MS) EGARCH. The MS-EGARCH model provides new insights on the volatility dynamics of Malaysian listed property companies compared to conventional volatility modelling techniques, particularly EGARCH. Additionally, this paper will analyse the volatility movement based on three different sub-periods such as pre-GFC, GFC and post-GFC.

Findings

The findings reveal that the markets perform differently under different volatility conditions. Moreover, the application of MS-EGARCH provides a different view on the volatility dynamics compared to the conventional EGARCH model, as MS-EGARCH provides more comprehensive findings, especially during extreme market conditions.

Originality/value

This study contributes to the literature on the dynamics of Malaysian listed property companies within pan-Asian countries, as the approach for assessing the volatility performance based on different volatility conditions is less explored by previous researchers.

Details

Journal of Financial Management of Property and Construction , vol. 25 no. 1
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 8 January 2020

Thi Kim Nguyen and Muhammad Najib Razali

As an asset class, listed property companies (PCs) in the emerging Asian markets have taken on increased significance in recent years. Investors have seen Indonesian real…

Abstract

Purpose

As an asset class, listed property companies (PCs) in the emerging Asian markets have taken on increased significance in recent years. Investors have seen Indonesian real estate investment trusts (REITs) being regulated to become a property investment vehicle in 2007. This sees macro-environment investment in the Indonesian property market taking off to a higher level regionally. In the background, Indonesian listed PCs maintain as one of the major investment vehicles for local and international investors. It has also been the subject of investment for REITs and property investment funds in Indonesia. The purpose of this paper is to assess the dynamics of risk-adjusted performances and portfolio diversification benefits of listed PCs in a mixed-asset portfolio context in Indonesia, from July 2006 to December 2018. The sub-periods of pre-global financial crisis (GFC), GFC and post-GFC of listed PCs is also assessed.

Design/methodology/approach

Using monthly total returns, the risk-adjusted performance and portfolio diversification benefits of listed PCs from July 2006 to December 2018 are assessed, with extended efficient frontiers and asset allocation diagrams used to assess the role of listed PCs in a mixed-asset portfolio. Sub-period analyses are conducted to assess the post-GFC recovery of listed PCs.

Findings

Listed PCs delivered higher returns but carried higher risks compared to stocks before the GFC, with bonds having both the lowest returns and risks. The impact of the GFC was highest for Indonesian PCs compared to stocks, where properties did not deliver strong risk-adjusted returns. Notwithstanding the poor risk-adjusted performance, Indonesian PCs had low correlations with stocks and bonds, suggesting some level of diversification potential for stock and bond investors. Stocks outperformed listed PCs across the sub-periods and the full period. Over the post-GFC period, both stocks and listed PCs recovered from the crisis, with stocks turning around stronger. This analysis shows a prolonged recovering and slow bouncing adjustment of listed PCs from the economic changes. This research suggests selected listed PCs may be the outperformers, and, a future contract as a hedge form for listed PC to be implemented.

Research limitations/implications

The use of the indices of Standard & Poor’s Indonesian property total return (for listed PCs) are as follows: MSCI Indonesia total return (for stocks), Indonesia’s ten-year bond’s total return (for bonds) and Indonesia’s three-month bill total return (for cash). This is used to study the Indonesian listed PCs and may have aggregation effects in its underperformance and therefore drawing a negative outcome. The results may reflect the common fact that the majority of listed PCs in Indonesia are property developers, which also sees underperformances in other emerging country markets.

Practical implications

Listed PCs have been under increasingly adjusted and positively adapted regulations from the Indonesian Government over the post-GFC period. Therefore, in order to attract interest from international investors in property investment in Indonesia, listed PCs need stronger and more efficiently adapted regulations to a competitive level of respective regulations in the region and globally. Notwithstanding the poor performance in the transitional stage, Indonesian listed PCs bring some diversification benefits to local investors who are able to pick the outperformed invested PCs at the right time. Of the on-going concerns, international investors have no restrictions on holding listed PCs in the Indonesian stock market. This provides room for improvement in business performance in listed PCs as a result of regional/global competition and international management being involved. The present study delivers awareness to investors, researchers as well as policymakers on the Indonesian property market.

Originality/value

This paper is the first published to present a country profile of significant property vehicles (commercial property, listed PCs and REITs). It also presents empirical research analysis of the risk-adjusted performance of listed PCs and its dynamic role in a local investors’ perspective across the pre-GFC, GFC, post-GFC periods. Given the significance of listed PCs in Asia, this research highlights more information for opportunities and on-going property investment issues in Indonesia.

Details

Journal of Property Investment & Finance, vol. 38 no. 2
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 15 July 2019

Musa Alkali, Ibrahim Sipan and Muhammad Najib Razali

The purpose of this paper is to determine the effect of negative information on the volatility of real estate residential prices in Abuja, Nigeria.

Abstract

Purpose

The purpose of this paper is to determine the effect of negative information on the volatility of real estate residential prices in Abuja, Nigeria.

Design/methodology/approach

The empirical research covers a sample period of 17 years from the first quarter of 2000 to the fourth quarter of 2017. The leverage effect of Abuja’s real estate residential price volatility is determined. Exponential generalised autoregressive conditional heteroscedasticity is used to determine the ARCH shock, GARCH persistence and the leverage effect of the volatility of residential prices in Abuja.

Findings

The research found that the volatility of real estate prices varies from one category of residential property to another. The leverage effect was found only in the price of two and three bedroom flats in Abuja.

Originality/value

The findings provide useful information on the volatility of real estate prices for real estate investors. The study has policy implications for the regulation of measures that gradually checkmate the patterns of volatility in the Nigerian real estate market. It also controls negative information (such as a fall of crude oil prices, high costs of building materials, inconsistency of macro-economic policies and insecurity and political uncertainty) which mainly raises the level of uncertainty in the market and exposes investors to risk.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 2
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 2 June 2020

Muhammad Najib Razali, Ain Farhana Jamaluddin, Rohaya Abdul Jalil and Thi Kim Nguyen

This research attempts to highlight the concept of big data analytics in predictive maintenance for maintenance management of government buildings in Malaysia.

Abstract

Purpose

This research attempts to highlight the concept of big data analytics in predictive maintenance for maintenance management of government buildings in Malaysia.

Design/methodology/approach

This study uses several empirical analyses such as vector autoregression (VAR), vector error correction model (VECM), ARMA model and Granger causality to analyse predictive maintenance by using big data analytics concept.

Findings

The results indicate that there are strong correlations among these variables, which indicate reciprocal predictive maintenance of maintenance management job function. The findings also showed that there are significant needs of application of big data analytics for maintenance management in Putrajaya, Malaysia, to ensure the efficient maintenance of government buildings.

Originality/value

The conducted case study has demonstrated the empirical perspective which streamlines with the big data analytics' concept in maintenance, especially for analytics' support with appropriate empirical methodology

Details

Property Management, vol. 38 no. 4
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 20 February 2017

Muhammad Najib Razali, Norhidayah Md. Yunus, Ainur Zaireen Zainudin and Janice Lee Yim Mei

The purpose of this paper is to assess the sustainability levels in terms of sustainability practices amongst public-listed property companies in Southeast Asia.

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Abstract

Purpose

The purpose of this paper is to assess the sustainability levels in terms of sustainability practices amongst public-listed property companies in Southeast Asia.

Design/methodology/approach

The websites and annual reports for each company were assessed to determine the level of sustainability practices amongst property companies in Southeast Asia. Their sustainability strategies were then rigorously assessed by using a scorecard which assesses sustainability levels based on related issues.

Findings

The results show that green or sustainable property development in Southeast Asian countries remains at a moderate level. There is still much room for improvement to enhance the level of green attributes in property development.

Research limitations/implications

This paper only assesses property development companies in five Southeast Asian countries; namely, Singapore, Malaysia, Thailand, Indonesia and the Philippines.

Originality/value

Given the increasingly significant sustainability issues – especially amongst international property development players, this paper attempts to deliver better informed investment and decision-making ideas for sustainable property developments.

Details

Property Management, vol. 35 no. 1
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 4 August 2021

Siti Hafsah Zulkarnain and Muhammad Najib Razali

This study is aimed to identify the attributes for a valuation approach of flood risk exposure, in particular for residential property. With frequent flood events in…

Abstract

Purpose

This study is aimed to identify the attributes for a valuation approach of flood risk exposure, in particular for residential property. With frequent flood events in Malaysia, there is a need for valuation methods to evolve and represent the increased risk of natural disasters.

Design/methodology/approach

This study employed the Delphi method which is a systematic and interactive research technique in obtaining variables for a valuation approach for residential property exposed to flood risk.

Findings

Results from the Delphi method revealed four categories of attributes, namely environmental, locational, structural and economical.

Originality/value

The findings from this research will transform the valuation approach in Malaysia to identify the value of residential property exposed to flood risk. The determination of variables will represent the current risk in valuations, especially for residential property in flood-prone areas.

Details

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

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Article
Publication date: 27 March 2018

Zheyu Li, Muhammad Najib Razali, Hassan Gholipour Fereidouni and Yasmin Mohd. Adnan

The purpose of this study is to estimate different data models on house prices using statistical models and the variables which are controlled by real estate policy.

Abstract

Purpose

The purpose of this study is to estimate different data models on house prices using statistical models and the variables which are controlled by real estate policy.

Design/methodology/approach

This study used several statistical techniques, such as Vector auto-regression (VAR), Johansen co-integration and variance decomposition, which aim to assess the significant effect of macroeconomic factors on Chinese house prices.

Findings

The results show that land supply and other variables have negative effects on house prices. The results also indicate that financial mortgages for real estate have positive effects on house prices and the area of vacant houses as well as the area of housing sold.

Research limitations/implications

This study only covers three cities in China because of limitations of data for other cities.

Originality/value

This study proposes policy suggestions according to the empirical results obtained.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 3
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 19 April 2018

Ibrahim Sipan, Abdul Hamid Mar Iman and Muhammad Najib Razali

The purpose of this study is to develop a spatio-temporal neighbourhood-level house price index (STNL-HPI) incorporating a geographic information system (GIS…

Abstract

Purpose

The purpose of this study is to develop a spatio-temporal neighbourhood-level house price index (STNL-HPI) incorporating a geographic information system (GIS) functionality that can be used to improve the house price indexation system.

Design/methodology/approach

By using the Malaysian house price index (MHPI) and application of geographically weighted regression (GWR), GIS-based analysis of STNL-HPI through an application called LHPI Viewer v.1.0.0, the stand-alone GIS-statistical application for STNL-HPI was successfully developed in this study.

Findings

The overall results have shown that the modelling and GIS application were able to help users understand the visual variation of house prices across a particular neighbourhood.

Research limitations/implications

This research was only able to acquire data from the federal government over the period 1999 to 2006 because of budget limitations. Data purchase was extremely costly. Because of financial constraints, data with lower levels of accuracy have been obtained from other sources. As a consequence, a major portion of data was mismatched because of the absence of a common parcel identifier, which also affected the comparison of this system to other comparable systems.

Originality/value

Neighbourhood-level HPI is needed for a better understanding of the local housing market.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 2
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 13 July 2017

Hassan F. Gholipour and Muhammad Najib Razali

The aim of this study is to investigate the factors influencing the financial performance of the real estate brokerage (REB) industry in Iran.

Abstract

Purpose

The aim of this study is to investigate the factors influencing the financial performance of the real estate brokerage (REB) industry in Iran.

Design/methodology/approach

The authors use two surveys concerning REB firms from provinces of Iran which were collected by the Statistical Centre of Iran in 2003 and 2011. The authors apply the pooled ordinary least squares and panel fixed-effects regressions to estimate the relationships between the explanatory variables and performance of REB industry.

Findings

The results indicate that in provinces where REB firms invest more in residential properties, vehicles, computers and business software, REB firms are more active in residential and non-residential property sales, and rent transactions have higher levels of financial performance. In addition, the results show that in provinces where REB firms invest more in non-residential properties and office furniture, REB industry has lower levels of financial performance. The authors also find that Iranian REB industry has significantly benefited from international economic and financial sanctions.

Practical implications

In terms of managerial implications, the authors findings potentially serve as guidance for Iranian REB firms to allocate resources and adjust their strategy to enhance their financial performance.

Originality value

Previous studies have typically been conducted in countries where REB firms mainly operate as intermediaries in transactions between property buyers and sellers, whereas in Iran, REB firms not only provide services to their clients but also are very active speculators in the property market. Furthermore, while there have been many studies that have investigated the various determinants of performance and efficiency of REB industry in developed economies, there is scant literature around this topic for Middle Eastern countries.

Details

International Journal of Housing Markets and Analysis, vol. 10 no. 4
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 27 July 2018

Afifuddin Husairi Husain, Muhammad Najib Razali and Sabariah Eni

The purpose of this paper is to investigate the benefits that client organisations expect from building information modelling (BIM) investment in Malaysia. Furthermore…

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Abstract

Purpose

The purpose of this paper is to investigate the benefits that client organisations expect from building information modelling (BIM) investment in Malaysia. Furthermore, this paper investigates the outcomes that, from the stakeholders’ point of view, the BIM approach needs to present.

Design/methodology/approach

To achieve this aim, this research employed a series of structured interviews which were conducted with representatives from client construction organisations in Malaysia. A structured questionnaire, containing 34 items, was used to collect data from respondents.

Findings

This research’s findings indicated that increased project revenue is one of the most expected benefits of BIM investment. In addition, it has been revealed that the Malaysian construction industry has implemented the BIM approach to project management. Furthermore, the great deal of acceptance among industrial players has been significantly positive, and thereby it can be concluded that the implementation of BIM in Malaysia has lots of potential.

Originality/value

This paper’s finding offers great knowledge, policy, and academic contribution, acknowledging the development of BIM’s implementation within the Malaysian construction industry.

Details

Property Management, vol. 36 no. 4
Type: Research Article
ISSN: 0263-7472

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