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Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.

The purpose of this paper is to construct a hedonic property price index in the segmented housing market.

Three different research questions are investigated. The first considers how to identify separate local housing markets, with the use of a regression‐tree approach, and the second concerns when it is possible to update a price index, with a recursive regression approach. Finally, the question about seasonal adjustment is investigated.

Overall, the hedonic approach is the best method to use. Moreover, the County of Stockholm is not one market in the sense that the market can be represented by only one property price index. It can be best described as a number of different sub‐markets where the property prices grow differently. The results suggest that there exist at least five different price indexes in the County of Stockholm. The results also support that recursive regressions are two appropriate methods to answer the research questions. Here, the empirical analysis suggests that the parameter estimates converge relatively fast toward the estimate using all observations.

The paper illustrates how to derive sub‐markets in the construction of a price index and when to update a price index series.

The introduction of new financial products, such as property derivatives, to the market has made the construction and quality of property price indexes more important. High quality price indexes are vital when it comes to, for example, pricing property derivatives. The paper facilitates this.

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.

The purpose of this paper is to empirically examine whether public knowledge of poor conditions of multi‐storey residential buildings affected the sale prices of these properties based on an analysis of panel data in Hong Kong.

Previous studies suggested that physical conditions of residential properties, particularly those concerning communal areas and services, might not be fully priced by the market because of the problem of information asymmetry. Therefore, it was envisaged that additional information pumped into the housing market could alter the price gradient between high‐quality and low‐quality properties. In November 2000, the Hong Kong Government publicly announced a list of poorly‐performing buildings, and this study aims to examine whether the blacklisting exercise brought about negative impacts on the sale prices of the affected properties. Hedonic price analysis was conducted on a set of panel data which consists of property transactions in both blacklisted and non‐blacklisted buildings.

The analysis results showed that properties in blacklisted buildings were not transacted at a discount, compared with those in non‐blacklisted buildings before the blacklisting exercise. Also, the release of public information on the blacklist did not create a relative diminution of the property prices of the blacklisted buildings.

Thin property transactions in derelict buildings limited the number of observations for running the regression analysis.

The piecemeal blacklisting exercise could not create price differential in the housing market, and thus it was not possible for the Hong Kong Government to lure homeowners to invest in their properties by market forces. The government should consider the implementation of a territory‐wide building classification scheme or other alternatives to solve the problems of building disrepair.

This study is the first attempt to empirically investigate the value diminution effects of the government's blacklisting against dilapidation buildings.

The purpose of this paper is to decompose and measure the microstructure of property investment returns for Tokyo’s residential property markets in as much detail as possible in comparison with office market.

Using enterprise value data for property investment trust companies composed of share prices available on capital markets, this study proposed a method of estimating property investment returns corresponding to changes in capital markets, and clarified the distortion in capitalization rate that are formed based on property appraisal prices.

The results for residential property showed that as building floor space increased, income and price increased while the discount rate decreased. In particular, a higher return could be obtained from office property than residential property by investing in larger-scale properties. Building age lowered asset price and income for both residential and office property, especially for residential property.

In Japan, investors believe that investment returns are high for properties close to the city centre, relatively new properties and those with large design or floor space. Therefore, this study first measured how asset prices, income and asset price–income ratios that comprise property investment returns change based on differences in these property characteristics. Second, the reliability/distortion of information that can be observed on the property investment market was measured. Furthermore, there was a significant divergence between discount rates and risk premiums formed by asset or space markets versus capital markets.

The differences of discount rate and risk premium formed by asset markets versus capital markets indicate that appraisal prices have biases. Thus, when it comes to property investment decisions, it is essential to make active use not just of property investment returns based on appraisal prices formed by asset markets but also information formed by capital markets.

A greater difference was generated in a shrinking market, suggesting that analysing property returns estimated on asset market information alone could lead to erroneous investment decisions.

This research is the first to use the enterprise value data from real estate investment trust companies composed of share prices available on capital markets for calculating discount rate and risk premium in property market.

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

The purpose of this study is to examine the impact of crime on apartment prices for Hamburg, Germany, for the years 2012 to 2017.

The authors use a panel data setting with fixed effects estimators and temporal lags to moderate the endogeneity concerns related to crime. The authors consider the effect of total crime, violent and property crime and some sub-categories of crime.

The estimates show that it takes two to three years for prices to react, with the longer run elasticity reaching −0.12 for total crime, −0.15 for property crime and −0.06 for violent crime. The elasticities are much larger in high-crime areas (−0.22 for total crime, −0.28 and −0.09 for property and violent crime) and elevated also in low-income areas.

The finding that property crime matters more in terms of quantitative impact for housing values than violent crime provides reasonable grounds for rethinking the resource allocation of public spending on crime clearance and prevention in Germany. Far more emphasis on preventing property crime appears in order and especially so in the lower income or higher crime areas, which are significantly more affected by crime and in particular property crime than those in high income or low crime areas.

The estimates for Hamburg provide the first detailed results of the impact of crime on real estate prices in Germany. It is also the first study for Continental Europe using panel data.

The purpose of this paper is to explore the affordability of Malaysian housing market, sufficiency of affordable housing and factors influencing the housing affordability in Malaysia.

In this study, qualitative research approach was adopted. Semi-structured interviews were conducted with ten industry practitioners from developers and real estate agencies and further validation with three industry experts.

The findings reveal that housing affordability is a grave concern to average Malaysians, and the supply of affordable housing is insufficient in the current residential property market. Income, property price, land cost and demand and supply are identified as significant factors affecting housing affordability.

The research findings provide an insight rather than definitive information, as the small sample size could limit the generalizability of the findings. Future research can include participants from the public sector and focus on the policy options.

This paper provided numerous policies to ensure successful deliverability of affordable housing which eases government to partner with private sector to formulate a systematic framework for implementation of affordable housing programs and schemes.

There is a need for government to pay more attention to housing needs of middle-income groups. Also, the government is urged to ensure transparent balloting process in every implementation of affordable housing programs.

The paper emphasised the issues of undersupply of affordable housing and mismatch of property price and income. The paper also highlights the key reasons behind high housing affordability index. Hence, it is hoped that this paper will encourage positive debate and gain some attention from the policymakers, practitioners and researchers in Malaysia and beyond.

Population ageing is fast becoming a major social concern across the globe. This ageing trend unavoidably fuels elders’ demand for healthcare services. As the main users of health care service, whether the healthcare is geographically approachable in local areas is more imperative to senior residents with restricted mobility. This paper proposes to examine the effect of elders’ healthcare accessibility on property prices of Taipei Metropolis, Taiwan.

Luo and Qi’s (2009) enhanced two-step floating catchment area method – taking both healthcare demand and supply into account – was used to measure three types of healthcare services: “physician-to-elder ratio”, “hospital bed-to-elder ratio” and “ambulance-to-elder ratio”. Spatial quantile regression (SQR) model was then used to examine the spatial effect of healthcare accessibility on different property price ranges.

The “physician-to-elder ratio” and “hospital bed-to-elder ratio” demonstrated expected consistent positive effects across all quantiles of property prices (p < 0.01) in SQR, and its effects aggravated as the quantiles of property prices rose. The “ambulance-to-elder ratio” demonstrated a non-linear influence on property prices (i.e. a negative effect on lowest quantile prices but a positive on higher quantile prices) possibly due to the semi-obnoxious characteristic of the ambulance. That is, residents living in lower priced neighbourhoods may dislike ambulances’ annoying sound of sirens (i.e. ambulances’ disamenity), while residents living in higher valued neighbourhoods may on the contrary appreciate ambulances’ healthcare services (i.e. amenity).

These findings are expected to offer some insights for government’s policies in providing elders in their later years with good residential quality and easy access to healthcare resource.

This paper is one of the few studies that consider the capitalization of the spatial healthcare accessibility to elders into property prices. In this ageing trend across the globe, although all the accessibility to medical resources should be equally critical, the application of spatial quantile regression revealed residents’ inconsistent tendency against semi-obnoxious ambulances. It provides a different perspective in defining the importance of healthcare accessibility in neighbourhoods.

This study aims to investigate the cointegration and causality relationships between Hong Kong’s residential property price and stock price, using quarterly data, from the 1st quarter of 1980 to the 3rd quarter of 2015.

In contrast to other studies, the cointegration test used is the autoregressive distributed lag (ARDL) cointegration (bounds testing) approach of Pesaran et al. (2001) that based on the estimation of an unrestricted error correction model and the causality test is based on non-causality test of Granger et al. (2000). Moreover, this research employs recursive least square procedures and Chow (1960) breakpoint test to detect unknown structural break and variation of relationships between residential property and stock price over the whole sample period.

The results of ARDL cointegration tests running from stock to residential property markets provide strong evidence to support the hypothesis that the stock and residential properties are cointegrated. The results of Granger et al. (2000) non-causality test support the view of wealth effect that stock price has an important causal effect on residential property price in Hong Kong but not vice versa. In addition, the results of recursive ordinary least squares coefficients estimates and Chow (1960) test (breakpoint test) for structural instability confirm the variation of the relationships between stock and residential property markets over the sample period.

The empirical results from cointegration and causality tests suggest that the residential asset returns are better predicted by including the lagged difference values of stock price.

This is the pioneering study to examine the cointegration and causality study of stock and residential property price in Hong Kong by employing Pesaran ARDL cointegration approach and Granger non-causality approach. Investors are able to perform an effective evaluation to assist in allocating investment funds, and the government bodies can implement supplement housing policy in response to the public needs.