Cong Liang, Eddie Chi Man Hui and Tsz Leung Yip
This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants.
Abstract
Purpose
This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants.
Design/methodology/approach
This paper adopts the fixed effects time-on-market (TOM) model and pricing model to study the research question.
Findings
Urban rehabilitation lifts the subdivided units (SDUs’) prices by around 7%. For the SDU located in old districts, urban rehabilitation gives rise to the rental price up by 11%–12%. The SDUs in the area without urban rehabilitation experience a short marketing period of 16%–17%. The SDU located in the old district that is without urban rehabilitation would have a short marketing time.
Originality/value
To the best of the authors’ knowledge, this is the pioneering research to investigate the relationship between rehabilitation and low-income rental housing from the improved search theory. The improved search theory posits that under the circumstance of urban rehabilitation, low-income tenants’ options are limited and the search behavior will be restricted in the affordable areas, and then TOM will be shortened. With the concentration of SDUs in Hong Kong, the test of the search theory is broken down into two hypotheses. (H1) Urban rehabilitation leads to low-income housing prices increase. (H2) Low-income housing located in areas without urban rehabilitation has a shorter TOM.
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Eddie C.M. Hui, Ning Ning and Ka Kwan Kevin Chan
As the Chinese Government is planning to transform the economy from an export-oriented economy into a consumption-oriented economy, the impact of Chinese consumers to the economy…
Abstract
Purpose
As the Chinese Government is planning to transform the economy from an export-oriented economy into a consumption-oriented economy, the impact of Chinese consumers to the economy will become more and more important. However, there is a lack of literature on Chinese consumers’ behavior and the critical factors of shopping malls in China. Hence, this study aims to determine the critical factors of a shopping mall in an urban complex in China from customers’ perspective, using Nanjing Wanda Plaza as an example for our case study.
Design/methodology/approach
This study carries out ranking analysis and factor analysis to determine the critical factors of the shopping mall. Then cluster analysis is applied to divide the customers into three segments, showing the importance of each factor to different customer segments. Furthermore, correspondence analysis is conducted to investigate the relationship between customer segments and customer characteristics (gender, occupation, age and income). This method can show how customer characteristics affect the critical factors of the shopping mall.
Findings
Sensual enjoyable shoppers consider the “soft factors” to be superior to the “hard factors”, whereas the pragmatic shoppers are just the opposite.
Originality/value
This study can serve as a useful reference for developers in designing shopping malls in urban complexes to attract more customers.
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Chenwei Yu, Eddie Chi-man Hui and Zhaoyingzi Dong
This paper aims to investigate the impact of digital inclusive finance on entrepreneurial activities in rural areas, as well as the underlying mechanisms and the variations of…
Abstract
Purpose
This paper aims to investigate the impact of digital inclusive finance on entrepreneurial activities in rural areas, as well as the underlying mechanisms and the variations of this impact across regions and household characteristics.
Design/methodology/approach
Utilizing the China Household Finance Survey Data, this paper applies the Two-Stage Least Squares with instrumental variables to assess the effect of digital inclusive finance on rural entrepreneurship.
Findings
The empirical findings indicate that digital inclusive finance significantly promotes entrepreneurial activities in rural areas by alleviating credit constraints, reducing financial information barriers, and altering risk attitudes for rural households. Additionally, this effect is more pronounced in the eastern region of China and for the “opportunity entrepreneurial activities.” Furthermore, the impact varies across rural households' income and consumption status, as well as the personal characteristics of household heads.
Originality/value
Firstly, this study broadens our understanding of the mechanisms through which digital inclusive finance influences entrepreneurial activities, thereby filling a gap in existing entrepreneurship research. Secondly, the study's findings affirm the inclusive nature of digital finance, contributing significantly to the literature on regional equality and illuminating potential pathways toward achieving “common prosperity.”
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Eddie Chi-man Hui, Ka-hung Yu and Cheuk-kin Tse
As the awareness of environmental preservation and of sustainable development have become increasingly pronounced among various stakeholders, such as governments and communities…
Abstract
Purpose
As the awareness of environmental preservation and of sustainable development have become increasingly pronounced among various stakeholders, such as governments and communities, many businesses, in response, commence to introduce environmental-friendly measures and/or implement an environmental management system (EMS) in their daily operations. Even a service-oriented industry such as property management is no exception. To showcase their commitment to this cause, property management companies tend to obtain different environmental certifications. This study aims to investigate the effect of green property management, through environmental certifications, on property price.
Design/methodology/approach
The hedonic price model is used to determine the impacts of different environmental certifications on prices of selected residential properties in Hong Kong. Three districts from different parts of Hong Kong, including 16 private residential developments, are covered in this study.
Findings
The results show that ISO 14001 certification itself is not statistically significant in explaining property price. It is only when a property management company has obtained other local environmental management awards/certificates that varying levels of (positive) property price premiums are found. Nonetheless, the authors also find that controlling for other housing attributes, obtaining as many environmental certifications as possible does not necessarily result in the highest property price premium.
Research limitations/implications
Nonetheless, the data sample has its limitations, such as its relatively small size and the unavailability of housing attribute(s) such as orientations.
Practical implications
For the implications, the value of environmental management awards/certificates, from the perspective of the end-users of property management services, is based on the scopes of these environmental certifications; the promotional effort on the part of organizations behind these awards/certificates; the disclosure of information about the EMS itself and the assessment criteria; and the public’s perceptions as to the companies’ rationale behind such certifications.
Originality/value
The study has provided some insights regarding the effect of various management standard certifications in property management, from the perspective of the end-users of the service (i.e. homeowners and potential homebuyers). This serves as a reference for developers, property managers, buyers and users alike.
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David Kim Hin Ho, Eddie C.M. Hui, Tai Wing Ho and Satyanarain Rengarajan
This paper aims to examine the behavior of “rational” residential developers, under game theory, for their pricing strategy in a competitive environment.
Abstract
Purpose
This paper aims to examine the behavior of “rational” residential developers, under game theory, for their pricing strategy in a competitive environment.
Design/methodology/approach
Results show that residential developers cooperate implicitly for long-term benefit, leading to a slow-down in sales. Developers are motivated to deviate from cooperating at the beginning and at the end of successive periods in a sub-market. Relatively high profits, earnable in the first few periods, provide an allowance to undercut prices and improve sales. For the last few periods, the punishment for any deviation from cooperating is insignificant or zero. Note that the first-mover advantage in a new market is evident. On the effect of uncertainty on the developer’s residential prices, results show that as uncertainty increases, prices decrease while price variability increases.
Research limitations/implications
This study highlights the merits of a uniquely simplified experimental research design for the strategic behavioral pricing of the private residential development market using a game theoretic approach.
Practical implications
This study enhances the understanding of the residential development strategy of developers in the residential development market.
Originality/value
There is limited research on pricing strategy for the private residential development market in Asia.
Details
Keywords
- Behavioural pricing
- Development and redevelopment
- Price uncertainty
- Experimental research design
- First-mover advantage
- Game theoretic approach
- Private residential development market
- Investor-developer
- Behavioral pricing
- Pricing strategies
- Game theoretic approach
- Experimental research design
- Equilibrium price
- First-mover advantage and price uncertainty
Eddie Hui, Philip Yam, John Wright and Kevin Chan
The purpose of this study is to verify whether the trading strategy can beat the “buy-and-hold” strategy for the securitized real estate indices of six Asian economies: Hong Kong…
Abstract
Purpose
The purpose of this study is to verify whether the trading strategy can beat the “buy-and-hold” strategy for the securitized real estate indices of six Asian economies: Hong Kong, China, Japan, Taiwan, Thailand and Malaysia.
Design/methodology/approach
This paper constructs a trading strategy from the Shiryaev-Zhou index and tests the strategy on the securitized real estate indices of six emerging Asian economies: Hong Kong, China, Japan, Taiwan, Thailand and Malaysia. The authors compare the resulting profits from using the trading strategy with the resulting profits from using the “buy-and-hold” strategy. The authors consider three cases: no transaction costs, 0.1 percent transaction costs, and 0.2 percent transaction costs.
Findings
The results show that the trading strategy the authors constructed generally outperforms the “buy-and-hold” strategy even in the presence of transaction costs. In particular, the authors have a new finding as follows: Thailand and Malaysia's securitized real estate indices fell drastically during the period of observation. However, applying the trading strategy to these two securitized real estate indices can still earn a profit.
Practical implications
The trading strategy is particularly useful in protecting investors from huge loss in adverse market conditions. The results can be applied to the field of finance/investment that investors can construct a trading strategy similar to the authors to earn more profits.
Originality/value
This study will consider cases where both buying and selling costs exist, so the scenario is more like stock transactions in real-life equity markets. Furthermore, in this paper, for each securitized real estate index, the authors plot a graph to show the holding and non-holding periods under the trading strategy. This would help the authors explain the resulting profit under the trading strategy. This kind of graphical analysis was neglected by Hui and Yam.
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Eddie Hui, Hui Wang and Xian Zheng
The purpose of this paper is to investigate the risk appetite in Hong Kong real estate and property security markets in the recent episode of global financial crisis.
Abstract
Purpose
The purpose of this paper is to investigate the risk appetite in Hong Kong real estate and property security markets in the recent episode of global financial crisis.
Design/methodology/approach
An advanced methodology developed from the previous risk appetite measurement and Markov Chain Monte Carlo simulation is used. Traditional research on risk appetite had never been applied to the real estate market before because no options underlying properties exist. However, this paper makes a contribution that in the absence of options, risk appetite indicators are derived for the real estate and property security markets.
Findings
The empirical results show that the risk appetite for the real estate market started to fall markedly in the third quarter of 2008, matching the very period of the Sub‐prime Mortgage Crisis in the USA. By contrast, those for the property security index were stabilizing in that period. This implies that investors' risk attitude to the real estate market differs from that to the property security market. Furthermore, the correlations between the index prices and the corresponding risk appetite in each market suggest that investors are “risk neutral” in the real estate market, while they are “risk lovers” in the property security market.
Originality/value
This paper, to the authors' best knowledge, is the first study to explore the risk appetite indicator in the real estate market, which could enable us to shed new light on the market price movement from the perspective of investors' market sentiment.
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Mobility has wide‐range impacts on the financial management of property issues, such as consumption and investment. In the literature of residential mobility, household life cycle…
Abstract
Mobility has wide‐range impacts on the financial management of property issues, such as consumption and investment. In the literature of residential mobility, household life cycle is widely acknowledged as an important concept. An array of household demographic factors such as age has been repeatedly found to be significant in influencing mobility. Many previous researches offer few verifi able hypotheses or propositions and their results are conflicting. Some of them also suffer methodological inadequacies. This paper is an attempt to rectify this situation. There are two important contributions by the current research. One is a methodology that employs multivariate methods, which fills the gap of previous research. The second contribution is the large census dataset of Hong Kong which is rare in previous studies. The research is conducted under the framework of life cycle models with emphasis on economic and demographic variables of households. Demographic determinants are found to be more important in explaining population mobility among rental households while economic factors are more pertinent for owners. This may be explained by the different strategies adopted by renters and owners in satisfying their housing needs. Renters are envisaged to base their mobility decisions more on demographic factors. Owners, on the other hand, tend to view home buying as an investment as well and hence put more emphasis on economic factors. It is hoped that this research can shed more light on the topic of residential mobility by drawing on the experience of a large population residing in a small place, Hong Kong
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Eddie Chi‐man Hui, Ann Yu and Russell Lam
The purpose of this paper is to examine the abnormal stock return of Hong Kong real estate firms following news of land acquisition and identify determinants to the abnormal stock…
Abstract
Purpose
The purpose of this paper is to examine the abnormal stock return of Hong Kong real estate firms following news of land acquisition and identify determinants to the abnormal stock return.
Design/methodology/approach
The paper employs the event‐study methodology and multivariate regression to test factors that are hypothesized to have effects on the abnormal return.
Findings
The paper indicates that on land acquisition announcement there is a significant positive price reaction. Also the market capitalization and debt‐to‐equity ratio of a firm is associated negatively with the level of abnormal price reaction.
Practical implications
This study has identified significant positive abnormal stock return following the news of land acquisitions by developers in the context of Hong Kong. It has also documented negative correlation between abnormal stock return and two specific factors of a firm, namely, market capitalization and debt‐to‐equity ratio.
Originality/value
This paper identifies significant positive abnormal stock return pursuant to land acquisitions by firms.