Real Estate

The special issue International Journal of Managerial Finance on real estate looks at various markets and assets and generally finds that while real estate assets offer the investor opportunities for diversification across various markets while being efficient in terms of risk and return. Bai, Chang and Devine (2014) find that larger REITs were better able to pursue profits as they de-leveraged during the recent economic cycle. Rodriguez and Romero (2014) find that global REIT funds (based in the USA) were able to earn excess returns for one of their test periods but it was associated with geographically successful areas. Bao, Glascock, Zhou and Feng (2014) study the valuation process in China and find that, in general, the Chinese market impounds the same set of variables as the USA market: however, they find that the entity (particularly SOEs) that purchases the real estate has an impact on value. Rossini and Kupke (2014) study Adelaide real estate in Australia and find an interactive effect on house and land prices. Land prices seem to anticipate higher house prices. Hsieh (2014) examines trading volume and volatility of Asian listed real estate and finds that listed real estate seems to have consistent behavior with the stock markets, in general, for the Asian countries in her sample. Finally, Ho and Addae-Dapaah (2014) study office markets in Kuala Lumpur, Hong Kong and Singapore. They find that Hong Kong and Singapore have more price volatility and are more prone to business cycles in the office sector than Kuala Lumpur.